Rare interview with John Burbank (Passport Capital)

End of QE2
Too early to tell if there will be QE3
Regardless, we need to fund $2T deficits next year -- will need to raise $800B from Banks or the Fed.
Resource Scarcity and Saudi Arabia
Concerned about resource scarcity
Started investing the middle east in 2006-07
One of the largest investors in Saudi Arabia

The country is not in any index and does not attract institutional money

Aramco may have over $1T in revenue in the near future
Financial Firms

No stake in financial firms

Regulatory issue vs. a bottom up analysis issue

Banks should be not allowed to pay dividends

We are pretending things are stable and back to normal
Recovery

We are "not recovering"

Housing prices are still falling

Mortgage Duration issue (low coupon) - will not be able to refi if rates rise so people will be stuck in houses for a long time

Fed is stuck with owning a lot of mortgages - the problem will get worse over time