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Ron Paul speaks during a campaign event. He plans to go to the Republican National Convention in Tampa and be placed on the nominating ballot.
Mitt Romney may be the presumptive GOP presidential nominee, but Texas congressman Ron Paul never planned to go away quietly before the Republican National Convention in Tampa in August — and neither did one of his staunchest supporters, L.A. hedge fund investor Mark Spitznagel.
It’s partly Spitznagel’s doing that Paul held out for delegates at one of the campaign's final acts, the Nebraska state Republican Party Convention, which took place a week and half ago, more than a month after the state's primary. (Paul failed to gain a plurality, dooming his chances at speaking in Tampa.) All along, the hedge funder helped keep Paul in the race, both by raising money and by providing the campaign with intellectual oomph.
Spitznagel, who runs Universa Investments, which he founded in 2007, lives in Bel Air and operates out of an office in Santa Monica. Why is the Michigan native so far out west, anyway? After all, hedge funds are supposed to be in Connecticut. Or at the very least, Manhattan. That wasn't Spitznagel's scene. "I wanted to get out of that groupthink of Wall Street," he said on the phone recently. "Everyone there is crammed into a handful of blocks." But it's perhaps more than just the non-NYC quality of L.A. that has made it a comfortable place for Spitznagel.
I guess you could call it a sort of "tennis court oath." Ron Paul, the Texas Congressman who's running for the GOP presidential nomination, spoke at the UCLA's Los Angeles Tennis Center last night. Watch to end to hear Dr. Paul's rousing endorsement of the states' right to set (medical) marijuana free!
President Obama might have, most of the time, big-gun public intellectuals like Paul Krugman and Robert Reich in his camp. Mitt Romney has Harvard economist Greg Mankiw advising him. And Ron Paul? Mr. Black Swan himself, Nassim Taleb, says that Dr. Paul is the only candidate who's "saying the right things" and has the "guts" to take on the Federal Reserve.
Not surprisingly, it actually seems pretty black and white with Taleb. He's worried about hyperinflation (not regular old run of he mill inflation-inflation, mind you). And he thinks that the only way to fix the financial system to treat government like cancer — in the video above, which I picked up from the Paul campaign's website, he refers to "metastatic" government at least twice. Taleb is himself a cancer survivor, so you can understand his metaphor in that light. But there are plenty of other people who are making this argument. That said, they don't have Taleb's intellectual heft.
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LE MARS, IA - DECEMBER 30: Republican presidential hopeful U.S. Rep Ron Paul (R-TX) speaks during a town hall meeting at the Le Mars Convention Center on December 30, 2011 in Le Mars, Iowa.
Ron Paul — Republican presidential candidate, GOP congressman from Texas, father of Sen. Rand Paul, libertarian, and dogged foe of the Federal Reserve — is touching down in Los Angeles on March 20 for a fundraiser. If you think Paul, with his desire to return the U.S. to the gold standard (bimetalism, actually, using gold and silver) and his tendency to subject Fed Chairman Ben Bernanke to lengthy disquisitions on inflation, is a litle bit different, just wait until you get a dose of the guy who's hosting this Bel Air shindig, at the former residence of Jennifer Lopez.
He's Mark Spitznagel, a very successful hedge-fund manager whose Universa Investments is based in Santa Monica. There are hedge-fund managers and there are hedge fund managers. Spitznagel is definitely in the latter category. He plies his trade in an exotic corner of the industry, making huge bets on statistically improbable events, now colloquially known as "black swans," after the 2007 book of the that title by Nassim Taleb.
The most entertaining episode from Federal Reserve Chairman Ben Bernanke's testimony before the House Financial Services Committee this morning came — Surprise! — when Texas Republican and GOP presidential candidate Ron Paul launched into one of his patented long-winded spiels about the evils of the Fed, the senselessness of fiat currencies, and the value of "real" money: silver and gold.
Bernanke took it all in stride. The video above doesn't have reaction shots that are quite as good as this shorter broadcast from ABC, so check them both out. You have to hand it to Bernanke, he seems to enjoy the roastings he gets from Paul, in strange sort of way. And he fires back, ever so gently, at Paul's allegations that we're experiencing 9 percent inflation (according to older pricing measures) when the Bureau of Labor Statistics (BLS) says it's only around 4. (They've been here before.)