VALUE: After Hours (S07 E19): Rudy Havenstein – The Fed’s Real Priorities and Bailouts

During their recent episode, Taylor, Carlisle, and Rudy Havenstein discussed The Fed’s Real Priorities and Bailouts. Here’s an excerpt from the episode:

Rudy: So, you don’t think they were calling Powell and telling him, you need to bail out Citadel? You need to make sure that Magellan’s funds don’t go down? It’s like, I was talking about this treasury guy earlier. They’re just protecting themselves. You don’t think Dick Fischer was saying, “Hey, can you, guys– Barclay’s is losing some money.” You had Bill Ackman. I mean, God, I have clips of this comes on as you remember. Literally crying on TV, “Oh, my. Don’t kill my dad. We need help.” [Jake laughs] And then, he gets this massive bailout. And two weeks later, two weeks later, there’s an article, “Bill Ackman boasts that he made $2.6 billion on COVID bounce trade,” okay?

Come on. No, Ackman’s on the New York Feds advisory board, on advisory committee. I don’t know if it’s a plunge protection type team, but it’s called something else, working group. He’s on that. There’s other guys I’ve posted before too that are on it. Anybody can look it up, but I’m the only one that does sometimes. You don’t think Amman was calling Powell going, “I need you to save the market and buy high yield bonds.” [Jake laughs] You know what? I see this. Joseph Peck doesn’t see it, because he’s too busy trying to survive, but I see it and I think it’s corruption and I don’t like it. Now, people say, “Well, what are you going to do about it? Nothing’s going to change.” I go, “Well, I know, but I’m just like-

Tobias: Tweet about it.

Jake: Yeah.

Rudy: -keep plugging away.” Well, as I’ve said– I’m sorry. The purpose of my account is to amuse me. And for future historians, if there are any. And of course, no one will read. The history is written by the winners. I think these people I’m mad at are going to be the winners. They always are.

Tobias: Let me just give a shoutout.

Jake: I think that the court gesture role is super important though.

Rudy: Well, people have called me a troll before. And I said, “I’m not a troll. I’m a historian. I’m pointing out stuff.” I decided a long time ago, if I’m going to say, “Oh, the Fed is–” I’m just not going to say the Fed is dumb. I’m going to say, this is why the Fed is hurting most Americans. And then, have a link to it and have a chart and have all that, so I can pretty much back up. So, I don’t get people much anymore come at me go, “No, you’re wrong. Ben Bernanke saved the world.”

There’s a guy who called me the second worst account on Twitter. I think Zero Hedge must have been the first. We had an exchange in the– Well, I think what it was is he was a money manager and he thought Ben Bernanke was God’s gift to money managers and I disagreed with that.

Tobias: [crosstalk]

Jake: Yeah.

Rudy: Yeah, he is. I found fault with that message, because I think Ben Bernanke’s the enemy of about 300 million Americans. So, remember, 10% of people own 93% of the stock, something like that. So, yeah, I’m quite comfortable debating anybody, but I choose not to. Now, I don’t want to pick fights or anything sometimes. So, if I realize someone’s completely hates me or is an irrational or something, I just say, “All right, man, we disagree,” and mute them or something. I encourage people to block me. So, save us both some grief. Why put yourself through this?

Jake: Yeah.

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