Submitted by Taps Coogan on the 5th of September 2019 to The Sounding Line.
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Sam Zell, businessman, real-estate mogul, and Chairman of Equity Group Investments, recently spoke with CNBC and, in a brief exchange, shared a sentiment that we have also discussed here at The Sounding Line; It’s hard to have a recession when interest rates are at zero and everyone is worried about a recession.
Some excerpts from Sam Zell:
“…It’s very hard to have a recession when interest rates are at zero. The fact that I am waiting for (a recession) is probably a positive sign because complacency is usually a major factor that leads to big surprises.”
“Isn’t the real problem that pundits like you, and me, and her haven’t been right… about anything? We sit here and predict it’s gonna be this and it’s gonna be that and we are worried about this and we are worried about that. And meanwhile, the game keeps going.”
“We’ve certainly never had a cash position like we have now… We think there is going to be some significant opportunities, but what we don’t see is the urgency. What we don’t see is the movement that’s pushing it one way or the other.”
“In the great recession, the whole scenario was compounded by the fact that we had mark-to-market right in the middle of a recession… it was insane. That took a difficult situation and made it impossible. We don’t have anything like today… We have an environment that’s semi-positive.”
For whatever it’s worth, I can’t remember a period when more people were worried about a recession. I also can’t remember a recession that everyone predicted.
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