Stanley Druckenmiller: Why we're spending like we're still in the great depression is beyond me

Stanley Druckenmiller, Duquesne Family Office chairman and CEO, joins 'Squawk Box' to discuss the state of the economy, the Fed's inflation fight, interest rate outlook, impact of AI technology, government spending and President Biden's economic policies, why Druckenmiller cut his Nvidia stake, latest market trends, and more.

[Jamesjerome]

Honestly, you are very right Stanley and Biden has to listen to this. I foresee a recession lasting 2-3 years, and if inflation continues to surge, the Federal Reserve will likely raise interest rates soon. Inflation is causing various issues worldwide, such as food shortages, scarcities of diesel and heating fuel, and significant spikes in housing prices, leading to a potential financial market crash. This global downturn could have long-lasting repercussions. Given the current inflation rate of approximately 9%, my main worry is how to optimize my savings and retirement fund, which has remained stagnant at around $300, 000, yielding almost no gains for quite some time.

[NicolaPellegrini]

I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.

[NicoleBarker-hevp]

I am an active duty service member and I have been investing for a few years. I have reached a point where I could benefit from financial advice to improve my $160k portfolio which seems to be stagnant and maximize return on my investment.

[tommyl]

Milton Friedman taught us that Government andGovernment ONLY causes Inflation, and he edified us on that score 40 YEARS AGO!!

[USGrantst]

Stanley Druckenmiller is an interesting fellow. He is just as often being right as being wrong, but unlike the rest of us, he manages to make money no matter what.

[brianwhitehawker]

I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.

[johnh]

I earned an MBA during night school and paid my own tuition out of pocket over the course of years. For the federal government to transfer the student loan liability of others to me is infuriating. There is no such thing as student loan forgiveness. It's simply a transfer of the debts of college attendees to those without college education or student debt of their own. The policy is wrong and immoral

[EllenGreidinger]

The Federal Government has been spending, spending, spending. We do not need to stimulate the economy anymore. We need deficit spending caps for the entire government added to the law and the budget process. We need to enforce spending discipline, except in rare emergencies.

Stan, thank you for being a serious economic analyst who talks about numbers.

[jeanb]

Fiscal spending is out of hand and the Fed is the enabler. Well said.

[chobson]

and militarization of economy, he missed that spending

[ctzoomie]

Government spending: political class career enhancement program. It's awesome to spend other people's money.

[janreichenbach]

A great guy, professor Adamodar, has done a fair amount of research on the US stock market (he teaches at New York University's Stern school of business). No surprise, since 1928, US stocks lead by a wide margin over all other asset classes with a cagr of around 9.7% including dividends.

I've taken the march 2009 low in the S&P 500 of 666 points as the fair value of the S&P 500 in early 2000.

And that means, we are, right here right now (06/19/2024) in fair value territory in the S&P 500 - Druckenmiller has of course a fantastic track record, but compounding at 30% annually is simply impossible for 99.95% of all investors.

Stanley has the "gift of gap" - most of us simply haven't.

If you can invest in a low cost index fund on the SPX right now, you can compound at almost 10 % p.a., without any effort or (long-term !) risk. Of course, there'll be setbacks like in 2022 or 2020 - simply ignore them.

[royprovins]

It will continue until the markets and other countries lose faith

[lemontadams]

the Dow posted its longest winning streak of the year, the wish to buy a home survey hit a record low. And making a bad situation worse, apartment renters expect rents to increase by 9.7 percent over the next year… as their earnings can’t even keep up with inflation.

[theodorearaujo]

The 7% budget deficit is when compared to GDP. The fiscal deficit for 2023 was actually just over 30% of the budget.

[gmb]

"A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the Public Treasury.

From that moment on the majority always votes for the candidates promising the most benefits from the Public Treasury with a result that a democracy always collapses over loose fiscal policy always followed by dictatorship.

The average age of the world's greatest civilizations has been 200 years."

Alexander Fraser Tytler- "Decline and Fall of the Athenian Republic"

[BP-]

Why do we pay taxes when the gov can just make money out if thin air?

[thecryptobunker]

Notice he mentioned blockchain and A.I. interesting. Government not only spending but regulating crypto away.

[JxLx]

why is the MSM not getting this message out there more.. Govt is spending spending spending.. where are we getting the money???? PLEASE EXPLAIN THIS TO THE AMERICAN PEOPLE...

[windsongwong]

The USA companies have lots of cash in their balance sheet.
The public debt of $35 Trillions is ridiculous.
Meanwhile China have $7 trillions in overseas assets.
USA would need friendly countries to buy its Tresuries.
Russia, China is out ……