undefined | Better HN

0 pointsPaulDavisThe1st4y ago0 comments

> Claudia Sahm? Krugman? I rather listen to the hedge fund guys, at least they have skin in the game, don't they? Claudia Sahm is extremely partisan, and so is Krugman.

"Hedge funds guy" are extremely partisan, in that they will fight hard to prevent any kind of legislative or other systemic change that would threaten their rent-seeking. They invariably favor the status quo and/or anything that increases their ability to profit, regardless of other consequences it may have.

I'm not going to claim that Krugman isn't "partisan" (although I think using this term to describe him undermines the meaning of the term), but I'm also not willing to accept that "hedge fund guys" are not.

0 comments

qPM9l3XJrF4y ago

Ray Dalio, billionaire founder of Bridgewater, has recently written a book "Principles for Dealing with the Changing World Order" where he advocates systemic change, including effective government action to address inequality.

PaulDavisThe1stOP4y ago

Ray Dalio is one of the exceptions that prove the rule, and even then, he's deeply committed to the fundamental "bestness" of capitalism even if he thinks it needs some government tweaking around the edges.

ODILON_SATER4y ago

You are correct.

To be honest, I am not a huge fan of hedge funds either. But in this specific case, I'd rather take their advice. In my opinion, for this specific case --discussing inflation trends--, I don't see a lot of room for hedge funds to be partisan? No new legislation, no wrinkles in the system, etc. And they may be wrong, and Krugman may be right after all. Economics, especially Macroeconomics forecasting analysis, should be treated with some reservation. I just find the particular post quite convincing given what I've observed in the last few months.

shapefrog4y ago

> I don't see a lot of room for hedge funds to be partisan

They have billions of dollars of bets on where interest rates go. Inflation trends and how they are interpereted are what drives interest rates.

If the fed took on board this particular interpretation at the next meeting Bridgewater would make low double digit billions on those trades.

Doesnt make them right or wrong, but anytime you see a talking head on cnbc or putting out a research note - they are talking up their positions.

j / k navigate · click thread line to collapse