David Einhorn Explains Why Only Gold Is An Antidote To The Fed's Destructive "Jelly Donut Policy"

Submitted by Tyler Durden on 05/03/2012 - 09:21 Ben Bernanke Bond CDS Central Banks David Einhorn David Rosenberg default Federal Reserve fixed Free Money Great Depression Gross Domestic Product Housing Bubble Japan Kyle Bass Meltdown Monetary Policy NASDAQ Quantitative Easing Real estate Recession recovery Rosenberg

David Einhorn who crushed it this week with huge profits on his short positions in both Herbalife and Green Mountain, finally takes on the ultimate competitor: the Federal Reserve, likening its "strategy" to a Jelly Donut policy, and explains what everyone who has been reading Zero Hedge for the past 3 years knows too well: "I will keep a substantial long exposure to gold -- which serves as a Jelly Donut antidote for my portfolio. While I'd love for our leaders to adopt sensible policies that would reduce the tail risks so that I could sell our gold, one nice thing about gold is that it doesn't even have quarterly conference calls." Or, as Kyle Bass said last year, "Buying Gold Is Just Buying A Put Against The Idiocy Of The Political Cycle. It's That Simple!" Not surprisingly, it is only the idiots out there who still don't get what these two investing luminaries are warning about.