Contrary to popular belief, says Whitney Tilson, founder and managing partner of T2 Partners, Bush and Obama didn’t blow the financial crisis.
The fact that we staved off “Armageddon” is a real credit to the former Bush and current Obama administration, Tilson says.
Tilson’s only complaint is that the bailout was far too kind to the idiots who loaned Wall Street firms trillions of dollars to make terrible loans. Shareholders were wiped out but debtholders–the people who loaned Wall Street money–were made whole when the crisis was in fact a debt crisis. This is a huge a moral hazard issue.
What are Tilson’s views about investing in healthcare? Don’t do much of it. The government pays too big of a role, which creates too much uncertainty. That said, looking at the fundamentals, he has invested in dominant out-of-favour companies such as Pfizer.
Business Insider Emails & Alerts
Site highlights each day to your inbox.