I wrote this 7 months ago, imploring folks not to listen to the Larry Kudlow's of the world.
Had you followed Larry's advice at that time, and went short Oil and long the banks, you would have lost nearly 100% of your capital (in a paired trade). Getting investment advice from the Boob Tube is like getting marriage advice from your divorced mother-in-law.
Back soon on housing and banking (look out below!!!!)
Mentatt (at) yahoo (d0t) com
1 comment:
They're just
Flying Monkeys of the F.I.R.E. economy.
"New circumstances compelled us to create our Flying Monkeys of the FIRE Economy award to recognize egregious and brazen politically motivated misrepresentations of economic fact that help foster and maintain the system.
The Flying Monkey's message is always the same and with like intent: hold on to the overpriced asset, don't panic and sell.
"The stock market is not over-priced or risky," they said during the tech bubble. "Home prices are not too high and, in any case, home prices are regional and never fall across the entire nation at once," they said at the height of the housing bubble. "The credit crisis is contained, limited to a small and insignificant corner of the bond market," they said after sub-prime mortgages blew up but before Alt-A, Auction Rate Securities, and other debt products followed. "Inflation expectations are moderate, confined to volatile energy prices," they said before milk and wheat prices doubled. "Oil is a speculative bubble about to pop," they said in 2004, in 2005, in 2006, in 2007, and now again in 2008.
You've heard it all. FIRE Economy economists play a critical role to misinform the public about the true nature and condition of the US economy. They do for the FIRE sector industries what doctors did for the tobacco industry for decades."
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