Ken Fisher: We Need More Debt

September 21, 2009 at 3:02 pm  ·  Category: Economics, The Investment Advice Business

Last week Ken Fisher went on TechTicker and said that the US is under-indebted and that more debt would actually be beneficial to the economy.  That’s because our rate of return on assets is higher than our cost of borrowing. 

To many it appears just the opposite: our debt levels our spinning out of control to the extent that we can’t possibly meet them which will drain our income and potentially cause a crash.  But Ken Fisher says this is backwards.

It’s a pretty wacky view and has generated a lot of commentary.  Henry Blodget said he thinks he’s “nuts”Mish weighed in today agreeing with Blodget.

Posted by Greg Feirman  ·  Trackback URL  ·  Link
 
3 Responses to “Ken Fisher: We Need More Debt”
  • I HIRED KEN FISHER IN MAY OF 07. HE CHOSE A FEW GOOD COMMODITY STOCKS AND OILS BUT SOLD OFF MY UTILITIES AND EXXON MOBIL. THEN HE PURCHASED AT TOP DOLLAR EVERY FINANCIAL AND BANK SUCH AS UBS,NOMURA GE AND LEHMAN . I WAS TOLD I WAS A COMPLAINER WHEN I VOICED CONCERN, AND WHEN I PULLED HIS DISCRETIONARY POWERS, HE FIRED ME. HE HAS SUED FORMER CLIENTS WHO EXPOSED HIM. HE IS BEING SUED BY AN OPTHALMOLOGIST WHO ENTRUSTED HIM WITH 2.5 MIL AND A FEW MNONTHS LATER HAD ONLY 1.2 MILLION LEFT. HE HAS A STAFF OF BLOG SCRUBBERS SO ONE CANNOT GET THE SKINNY ON HIS TRACK RECORD.. HE CHANGES BENCHMARKS TO SUIT RESULTS. HE HAD TO HAVE KNOWN IN MAY OF 07 ABOUT THE HOUSING AND MORTGAGE FIASCOS GOING ON AND A SO CALLED SMART MAN LIKE HIM COULD HAVE FIGURED SUBPRIME MORTGAGES, FLIPPERS AND SCAMMERS EQUAL BANK FAILURES IN THE FUTURE. HE ALSO PUT I SHARES OF JAPAN AT TOP DOLLAR INTO ACCOUNT AND TONS OF GE AND VANGUARD REITS ALL AT TOP DOLLAR.. HE DOES NOT HEDGE OR SHORT OR TAKE PROFIT OFF THE TABLE.. HIS REBALANCE IS TO BUY HIGH AND SELL LOW. HE IS RUNNING AN UNREGULATED MUTUAl FUND AS EVERYONE GETS THE SAME STOCKS, CONTRARY TO THE SALESMEN’S LIES ABOUT A PERSONALIZED PORTFOLIO. THE MAJORITY OF HIS CLIENTS ARE ELDERLY FROM CA AND FL. HE IS NOT LICENSED IN FL AND I AM NOT SURE WHAT CREDENTIALS HIS AGGRESSIVE SALEFORCE HOLD. THEY ARE VERY AGGRESSIVE AND IT TOOK 3 VISITS WITH 2 SALESTAFF TO CONVINCE ME THAT I NEEDED THEIR SERVICES TO EASE MY FINANCIL WORK AND WORRIES. FISHER DENIED UP UNTIL A FEW MONTH AGO THAT WE WERE EVEN IN A BEAR MARKET. THE ONLY REASON THE GOVT. HAS GOTTEN AWAY WITH SUCH VAST AMOUNTS OF DEBT IS BECAUSE OUR INTEREST RATES ARE BEING HELD DOWN TO SUCH LOW RATES THAT ANY RETURN WOULD BE NEGATIVE. THE PRESSURE COOKER LID IS ABOUT READY TO BLOW AND WHEN IT DOES, INTEREST RATES WILL SURPASS THOSE DURING CARTER’S ADMINISTRATION. BACK THEN WE WERE STILL A MANUFACTURING NATION BUT THIS TIME–NO MANUFACTURING, HIGHLY REDUCED TAX REVENUE TO SERVICE THIS VAST DEBT EQUALS A REDUCTION IN OUR CREDIT RATING TO THAT OF A BANANNA REPUBLIC.. THE NARCISSISTIC MAN IS SICK. HE LIKES TO HEAR HIS OWN VOICE. NOT MANY BUY HIS BOOKS AND THE NEW ONE OUT IS “HOW TO SMELL A RAT”, IT IS HIS AUTOBIOGRAPHY. CAVEAT EMPTOR

    fran  ·  Sep 22, 2009 at 2:39 pm  ·  Permalink
  • fISHER LACK OF UNDERSTANDING OF THE ECONOMY IS NOW BEHIND DOUBT.( See his forbes column of 2008).And he is proud to be against the general views.If you are against and right , you are a genius but if you are against and wrong you are a “Fisher”.So now , he goes against the general views on debt. Nothing new , last year he went against the credit crunch and the year before against the house crash.When it comes to his book against Madoff and Standford, he should have written it before the events, not after.Some people had warned the authorities about Madoff.Was Fisher one of them? He had no clues.I would suggest him to write a book to warn the public about dangerous money managers.How to smell an agressive money manager. How to smell a money manager who boasts about his abilities to read a bear market and who not only fails to react when a bear market occurs but who dimisses all the warnings of the competent economists. Such a book would be as useful as how to smell a rat.

    bruno  ·  Oct 12, 2009 at 10:28 am  ·  Permalink
  • WE NEED MORE DEBT?
    IT SEEMS WE HAVE ALREADY A LOT BUT WHO KNOWS

    paul  ·  Oct 13, 2009 at 2:37 am  ·  Permalink

Leave a Comment

Name required
E-mail required, won't be published
Web site