Druckenmiller thinks that leverage is far too high, saying that central banks and China have allowed for these excesses to continue and it's setting us up for danger.
The obsession with short-term gains is overwhelming the need for long-term reform at the Federal Reserve, he said.
"It's this kind of myopia that causes reckless behavior at the government and corporate level," said Druckenmiller.
He highlighted that net cash flow has gone negative while net debt is still climbing at an unprecedented rate. He also said that instead of investing in growth, companies are adding the debt for financial engineering like buybacks and M&A.
The corporate sector is stuck in a "vicious cycle" of chasing earnings and adding debt, he said .... http://www.businessinsider.com
