Wall Street Legend says Don’t Raise the Debt Ceiling

Legendary investor Stanley Druckenmiller has some things to say about the federal debt limit controversy. Contrary to Bernanke, Geither and the rest of the dem’s sky is falling and double dip frantic talk, Druckenmiller feels it’s no big deal if the debt ceiling is not raised and he points out history backs him up. His real fear is if the Republicans stand firm on not increasing the debt limit and get no concessions from Obama and his crowd. Druckenmiller says we are running out of time and in another three to four years we will not be having this conversation.

Stanley Druckenmiller manages his own money. He’s worth according to Forbes $2.4 billion and gives a lot, $700 million, away. He’s the model for the movie “Waiting for Superman” and is the largest benefactor to the Harlem Children’s zone. The famous interview shy Druckenmiller knows about finance. He would rather place his money on a country that defaults and get its house in order than in one which does not address the problem of debt and entitlements and lets things go. He feels other investor countries are looking at the U.S. the same way. 

 Discussing the Free Market he has some stunning things to say;

 “It’s not a free market. It’s not a clean market.” The Federal Reserve is doing much of the buying of Treasury bonds lately through its “quantitative easing” (QE) program. The market isn’t saying anything about the future. It’s saying there’s a phony buyer of $19 billion of Treasurys a week.”

Druckenmiller goes on to say; “When do you generally get action from governments? When their bond market blows up.” But that isn’t happening now,  because the Fed is “aiding and abetting” the politicians’ “reckless behavior.”