Not that anyone’s been listening, but Paul Tudor Jones has been warning that winter is coming for some time now. Worse, a decade of easy money and the ill-considered, scattershot economic policies—if you can call them them—of the current occupant of the White House and his band of goons are conspiring to make it a nuclear winter. Echoing his favorite author in a little chat with Lloyd Blankfein, of all people, Jones notes that we cannot escape the inexorable tides of history, and that when the end comes, all of the private security guards and boom gates and speed bumps will not suffice to protect the people of Belle Haven and their ilk from the revolutionary masses.
“You look at prices of stocks, real estate, anything,” he said. “We’re going to have to mean revert to a normal real rate of interest with a normal term premium that’s existed for 250 years. We’re going to have to get back to that….”
“The next recession is really frightening because we don’t have any stabilizers,” Jones said. “We’ll have monetary policy, which will exhaust really quickly, but we don’t have any fiscal stabilizers.”
“The one thing I’ve learned over the past 40 years — these price patterns it’s the same old story so often just with different characters, different times, different plots,” Jones said.