Roubini Idiot
Time magazine recently profiled the top 100 people of 2009. Roubini was honored as supposedly predicting the fake financial crisis and media generated recession, as well as casting doubt on Greenspan’s quantitative easing efforts.Yea… because apparently he was the only critic at the time of Alan Greenspan. Rubini may have clinical depression, which explains his incessant cynicism.
From Wikipedia:
His pessimism is focused on the short-run rather than the medium or long-run.[2] In Foreign Policy (Jan/Feb 2009), he writes, “Last year?s worst-case scenarios came true. The global financial pandemic that I and others had warned about is now upon us. But we are still only in the early stages of this crisis. My predictions for the coming year, unfortunately, are even more dire: The bubbles, and there were many, have only begun to burst”. In conclusion, he adds, “This will be a painful year. Only very aggressive, coordinated, and effective action by policymakers will ensure that 2010 will not be even worse than 2009 is likely to be.”[12]
Roubini may know a lot about economics in terms of facts and figures, but his interpretation and predictions are wrong because that one is deluded by leftist, anti-supply side ideology, which impairs his ability to reason. He’s like a crank that yells on a street corner; stupid, angry, and ineffectual. He doesn’t understand or refuses to accept that printing money is fixing the supposed financial crisis, and restoring investor & business confidence. That’s why the stock market keeps going up without fault. Anyone who shorts the market based on that ones pessimism regarding Obama and Geithner’s stimulus & bailout efforts will lose money.
Roubini phone home
My Response to the Goldman Conspiracy Theorists
If you can’t beat em’ join em’ . Buy GS stock and stop pounding the pavement like a Huffington Post reading loser while everyone else makes money in this bull market.
Goldman can do no wrong. $200 soon. Other banks are dropping like flies, but Goldman is run by the smartists minds in the world and value talent and skill over entitlement. Goldman rewards merit with generous bonuses, but the populist and leftist socialists want to confiscate these bonuses, white ironically espousing the virtues of affordable healhcare, education, and other lesser matters. They want to redistribute the wealth to fund initiatives that impede economic growth and innovation.
If some Goldman conspiracy is responsible for this huge rally how would you explain Google, Apple, Research in Motion, and Amazon.com are reporting record earnings? Maybe improving fundamentals are driving this rally, unless that’s an illusion, too. To take it a step further, maybe reality in itself is a conspiracy because we’re living a computer simulation powered by a Matrioshka brain. If so, I hope they program a 300 point rally on Monday.
Debunking More Populist Babble
Yesterday seeking alpha published a long-winded article by Paco Ahlgren titled Nothing About This Economy Is Surprising. The following quote is an example of how doom and gloomers lack perspective regarding Geithner and Obama’s stimulus efforts. They keep falling back on the same meaningless, populist platitudes:
Well, apparently listening isn’t part of the equation, because governments everywhere are printing unprecedented sums of money. They are creating still more easy credit. They are doing all the same things ? on the largest scale ever — that got us here in the first place. Above everything else, though, they are fulfilling Einstein’s famous dictum.
But the stock market is surging and economic indicators allude to a ‘V shaped’ recovery. James Byrne from grand-view writes:
Consumer spending was up +2.2% (+1.5%). Imports declined 34% vs exports declining 30%. Net exports resulted in positive effect of 2% to growth as the trade gap narrowed….So, while the headline numbers seem troubling, keep in mind the following. The first quarter is in the rear view mirror. It’s history…
Agree 100%. So why is the the recovery defying the doom and gloomers? Because the much detested bailouts and stimulus are working, which is why wallstreet likes them and short sellers despite them. You can inflate your way to prosperity. It worked in 2003, 1982, and it’s working now.
Keep in mind how cheap stocks are, as illustrated by the chart below. If the S&P 500 had a PE ratio of twenty it would amazingly be trading around 1,500. The fifty percent plunge last year was mostly just profit taking, combined with a small degree of economic weakness due to excess consumer savings. That’s all. It’s not a new paradigm of ‘renewed frugality’ or any such nonsense. Now if the S&P 500 had a PE ratio of around twenty while trading at 890 it would portend to a more ominous economic situation.
You can’t just assume that excess liquidity caused the bear market. Why? Because the net economic gains between 2003 and 2008 were positive, despite the stock market falling fifty percent, and these gains can be attributed to the fiscal liberalism of Alan Greenspan and George W. Bush. Had we embraced fiscal conservatism, isolationism, and protectionism in 2002-2003 there is a strong possibility the S&P 500 would be trading at 900 now with a PE ratio of twenty, instead of thirteen. Liquidity, globalization, and free market capitalism is the lifeblood of the stock market, economy, and the enabler of the type 1 civilization transition.