NASSIM TALEB: 'I Own Stocks Because I Don't Trust Treasury Bonds'

nassim taleb

Photo: CNBC

Nassim Taleb is on CNBC talking about Ron Paul, the Fed and the U.S. economy.Taleb author of Fooled By Randomness and The Black Swan has already endorsed Ron Paul. Here are excerpts from the interview.

On Ron Paul

Taleb said he backs Paul because of his stance on deficits, the Fed, militarism and bailouts:

“I watched the election and realised that there is something wrong that is going on. Only one candidate, Ron Paul seems to have grasped the issues and is offering the right remedies.

…From my risk based vantage point I think one candidate represents the right policies at least when it comes to the big four and that candidate is Ron Paul.”

Taleb went on to say that as a taxpayer who didn’t want to be hoodwinked and as a citizen of the U.S. he believes it is his duty to come out and support Paul who he thinks has staying power.

On the U.S. economy

Taleb wants to see the U.S. government cut spending and bring its budget under control:

“You have to start with government budget that is in control. You start with that, it’s an unconditional. You don’t gamble with future generations money. You don’t gamble with hyperinflation. Like what we’re doing to the Greeks. We’re doing it to the Greeks. We should do it to ourselves. That’s 90 per cent of the problem.” 

On investing

Taleb opts for stocks and doesn’t invest in treasuries. While stocks are benefiting from Fed moves Taleb said he is afraid of hyperinflation and opts for stocks and real estate instead. He also owns some euros.

“I own stocks. Why? Because I don’t trust treasury bonds. I happen to own stocks. I’d rather have a dividend than a coupon.” 

Watch the interview at CNBC:

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