Tuesday, 22 July 2014
Last updated 2 hours ago
May 13 2011 | 12:49pm ET
One mutual fund manager has called the United States the worst epithet imaginable: a hedge fund.
Not just any old hedge fund, either, according to Old Mutual Asset Managers' Stewart Cowley: an overlevered hedge fund.
"U.S. borrowing is nearly at the $9 trillion mark," Cowley sneered at the Morningstar Investment Conference this week. "This kind of borrowing is grotesque and simply cannot go on."
Cowley called on the U.S. to tighten its monetary policy and rein in spending, as European countries, including his own, the U.K., have been forced to do. And then he dropped the H-bomb.
"U.S. reserves look like an 80-times leveraged hedge fund, and no one would want to buy that, but the country just keeps on unreservedly spending $1.5 trillion a year," he said. "The consequences will eventually result in inflation being embedded in the economy."
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…