Shervin Pishevar discusses the likelihood of further central bank meddling

Shervin Pishevar is one of the most respected venture capitalists in the tech space. He is the founder as well as the CEO of Investment company, a venture capital firm that has involved itself in the creation of some of the most prominent tech companies of our time, including Airbnb, Uber and Virgin Hyperloop. Shervin Pishevar has also founded a number of big-name tech companies himself, among them, Social Gaming Network, Inside and WebOS.

But when he isn’t busy running his empire of tech firms, Shervin Pishevar often takes to the Twitterverse to discuss matters of crucial importance to the future of the country. One of the issues on which he has addressed his more than 100,000 Twitter followers has included the state of the economy and the role of the Federal Reserve in shaping the current severe asset inflation and other potential problems that we are currently seeing.

Shervin Pishevar says that the experiment in so-called quantitative easing that the Fed has carried out over the last decade has had some pernicious effects on the economy. And he believes that not enough people, central bankers included, have been able to recognize them. Pishevar says that the Fed’s flooding of the market with cheap credit has created a widespread general asset bubble that has transcended asset classes. He says that there is now excessively high valuations in real estate, equities and bonds.

One of the consequences of this, says Pishevar, is that homes and housing costs in general have skyrocketed, leaving ordinary Americans with less disposable income. This has also had a ripple effect throughout the economy, putting a lid on consumer spending, the main driver of the economy and a source of revenues that amounts to more than 70 percent of U.S. GDP.

Pishevar warns that once these declines in economic activity begin to be reflected in the price of stocks, the Fed will not hesitate to carry out more heavy-handed interventions. This, he believes, may present a serious risk for the eventual development of hyperinflation, a condition that could ultimately cause the annihilation of most Americans’ savings.

https://blog.taskrabbit.com/tag/shervin-pishevar/

Sahm Adrangi Negative Report

Investment manager, Kerrisdale Capital, recently published a report that explained why its shorted position on The St. Joe Company. KC stated that it believes St. Joe will utterly fail in its $1 billion venture to transform a large and deserted area near Panama City Beach into a luxurious neighborhood for retirees and businesses. Kerrisdale describes the pitiful land holding as a “swampy, remote, desolate” area. They say that even if it does succeed, their expectations are way to ambitious, so ambitious that if there expectations were to come true it would make more profitable than all the other commercial real estate investments in the Panhandle combined.

But the biggest negative is that nothing has been really happening during the entirety of the project’s life. As of right now, things are going so sluggishly in the project that it is doubtful anything will ever come of it. And this is not a project that just started. It was originally proposed over a decade ago and has had investors impatiently waiting around all that time. In the meantime, some of these companies have been lessened in profitability in part because of this stagnant investment. The most so is Fairholme who is about to go under completely and incidentally owns a third of St. Joes shares.

Kerrisdale Captal is led by its founder and CIO, Sahm Adrangi. He leads his company to obtain misunderstood stocks like underfollowed longs and overhyped shorts. The company reflects this same philosophy of stocks. These can be found on its website. Sahm Adrangi entered adult life by earning his B.A. in Economics from Yale University. After graduation, he entered the financial industry by working in credit at Deutsche Bank. During these years he leveraged loan debt financing and advised creditor committees in bankruptcy situations.

Sahm Adrangi first made a name for himself in the financial world by exposing fraud in Chinese markets. In recent years Adrangi has led Kerrisdale to focus on a number of developing areas. Biochemistry, telecommunications and mining may be predominant. Sahm Adrangi is today a much coveted and sought after financial speaker worldwide. He also writes articles on finances for various periodicals.

https://www.crunchbase.com/person/sahm-adrangi