On the market's decline:
"We sometimes we use the word `depression' because a recession connotes really just an inventory adjustment, etc. What we're talking about doesn't have to be as bad as the Great Depression, but it's a major long-term readjustment of the economy."
``The U.S. consumer is slowing down dramatically. We should break through the 800 level on the S&P, where we were in '02. And I'd say over the next 18 months to two years this is going to be a secular bear market. It's going to take awhile to get through these excesses, and we think the U.S. economy is going to have to adjust to a lot less consumption.''
On Fannie Mae and Freddie Mac, which fell 13 percent and 24 percent today, respectively:
"The issue here is capitalization and the issue is losses that are going to occur for their guarantee business. They have more than $3 trillion in guarantees that's off balance sheets. Right now they are holding capital for only 45 basis points for those guarantees and there will be significant losses there, and at 45 basis points, it's ridiculously low."
On a potential rally:
"Oil will probably sell off and it wouldn't surprise us if it sells off to $100 because there has been demand destruction in the U.S. economy and around the world, and the U.S. market is likely to rally from that and people are likely to feel a little bit better about themselves, spend a little bit more. But that's just going to elongate this process."
"Even if oil goes back down for a while and we get a bit of a rally, we think that rally should be sold."
"You can sell virtually everything."
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