Noted hedge fund manager Stan Druckenmiller, 59, on Friday warned that the U.S. economy is headed for a “storm" that could prove to be far worse than the financial meltdown of 2008.
But first, if you’re not familiar with his name, here’s what you need to know: He’s one of the most respected and successful hedge fund managers in the past 30 years.
Obviously, you don’t achieve that type of success (or notoriety) on Wall Street by running your mouth. That being said, if Druckenmiller, a former partner of billionaire liberal philanthropist George Soros, is predicting serious economic trouble for the U.S., perhaps we should listen.
"I see a storm coming, maybe bigger than the storm we had in 2008, 2010. And really, the reason could happen without people looking as for a lot of similar reasons that we could get into,” he said during an interview with Bloomberg TV’s Stephanie Ruhle.
“But the basic story is, the demographic bubble I was looking at way back in '94 that started in 2011, we are right at the first ramp-up of this thing that is about to hit,” he added.
His comments were made during a larger discussion on the dangers Social Security, Medicare Medicaid, and unfunded liabilities as high as $211 trillion, pose to future generations.
"I think people like me and others need to speak out. It's about the future, not about the present where the problem is,” he said.
“While everybody is focusing on the here and now, there’s a much, much bigger storm that’s about to hit,” he added. “I am not against seniors. What I am against is current seniors stealing from future seniors.”
Watch the Bloomberg TV interview here.
However, if it’s any consolation, Druckenmiller isn't totally without hope. Indeed, he actually thinks the U.S. has a chance of turning this ship around.
"With the proper education and with proper voices out there, we could have 40 million kids marching down to Washington," he said.
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