David Tepper — who arguably helped give stocks a major lift after his CNBC appearance on Friday — gave a speech that started with a story about horse sh*t this May, as an example of people’s tendency to over-react.
“In 1898, the first international urban-planning conference convened in New York,” he said in a speech given to the Prophecy Conference in Tulsa.
“It was abandoned after three days because none of the delegates could see any solution to the growing crisis caused by urban horses and their output. In the Times of London, one reporter estimated that in 50 years, every street in London would be buried under nine feet of manure.”
His point was that we don’t really need to worry about hyperinflation or depression and deflation, because neither extreme is likely to happen, even though we don’t yet see a solution to explain why it won’t.
The people who are talking with certainty and saying that one or the other will happen are, much like the horses sh8tting, spreading around a bunch of crap that people are really worried about:
“On the way to work this morning, I got a headache because I was listening to one guy talking about how there’s gonna be hyperinflation. And then after him there was some guy telling me there’s going to be a depression and deflation.”
So Marc Faber, Nouriel Roubini, and the like, are our generation’s version of incessantly sh8tting horses. And like the ponies’ manure of aught did not result in an epidemic, neither will sh8t fears and warnings spread and pile up and effect a panic.
“Neither—neither—is most likely going to happen.”
“The point is, markets adapt, people adapt.”
“Don’t listen to all the crap out there.”