Legendary hedge fund manager Stanley Druckenmiller, who is also former partner of George Soros and a billionaire investor, has warned that an economic crash worse than 2008 is coming.
While it might be easy to brush off Druckenmiller’s predictions, it’s worth remembering that he predicted the last financial crash years before it happened, and has a track record of predicting financial blunders.
In basic terms, Druckenmiller warns that the country’s elderly are leaving future generations with a large amount of debt, which will eventually lead us to a financial meltdown.
According to Bloomberg:
Druckenmiller, 59, said the mushrooming costs of Social Security, Medicare and Medicaid, with unfunded liabilities as high as $211 trillion, will bankrupt the nation's youth and pose a much greater danger than the country's $16 trillion of debt currently being debated in Congress...
Druckenmiller said unsustainable spending will eventually result in a crisis worse than the financial meltdown of 2008, when $29 trillion was erased from global equity markets.
He told Stephanie Ruhel during an hour-long interview that focusing on the here in now is the problem.
“While everybody is focusing on the here and now, there’s a much, much bigger storm that’s about to hit,” he said. “I am not against seniors. What I am against is current seniors stealing from future seniors.”
In order to overcome this problem, Druckenmiller said we need to get control over Social Security spending.
Though the housing and stock market are looking better these days, he said this is only temporary and artificial.
He said the next step to solving the problem is to talk to younger generations.
“Look at our young people who are obsessed with the environment,” he said. “They are looking at the consequences of our actions 50 to 60 years from today.”
“With the proper education and with proper voices out there, we could have 40 million kids marching down to Washington.”