John Paulson Is Upbeat on the Economy But Is Hoarding Gold Just in Case


Our sometime IM correspondent, rock-star subprime manager John Paulson, hasn’t contacted us in a long time. Probably this is because he has been taking a breather from the whole GS thing in London, where apparently they don’t have the Internet. We’re sure that’s it. Anyway, the other day Paulson gave a talk at the School of Economics, where he declared he was optimistic on the American economy. “We’re in the middle of a sustained recovery in the U.S.,” he told the crowd of young, impressionable students. Yay! How comforting to hear from a person that many consider to be a visionary genius after his foresight in predicting the subprime collapse! Until you consider the fact that despite these purportedly bullish views, Paulson’s actual investment strategies connote a much darker worldview.

It’s funny, we weren’t too bothered by Paulson betting against dolty, greedy fund managers and bad borrowers. But now that it appears to be, like, modern civilization and everyone in the world on the other side of his trade, we’re a little creeped out.

John Paulson Bullish on US, Denies Subprime Culpability [CNBC]