No end in sight for debt addiction: Paul Singer

Paul Singer
Photo: World Economic Forum | Wikipedia

Billionaire hedge fund manager Paul Singer holds a pessimistic view of the global financial system, saying he believes the Federal Reserve easing back on its asset-purchasing program is "off the table" even though investor confidence could sour quickly.

"The conditions for a loss of confidence are here right now," Singer said at The Wall Street Journal's Heard on the Street Live event in Manhattan. Singer runs $22 billion Elliott Management, one of the oldest and most successful hedge funds in the world.

Singer said Janet Yellen—the likely successor to Ben Bernanke as Federal Reserve chair--would be unlikely to end the country's unhealthy dependence on debt the way Paul Volcker did in the same position during the 1970s and 1980s.

"There's an absence of any signs that political leaders are willing to face this problem and address and restructure these obligations," Singer said.

If a reduction in the Fed's $85 billion a month bond-buying program ever starts, Singer said it was "very, very uncertain" what would happen.

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