So The New York Observer recently ran this story on what they're calling the "new doom," which essentially is a festival of quotes from those on Wall Street about how the country is destined to become a giant sinkhole of failure. We're headed for a third depression, and "the rot isn't going anywhere," and fire and brimstone, and George Steinbrenner's dead, yadda yadda yadda.
Some quotes, "Life is such a fucking disaster," a prominent New York hedge fund manager said recently. "We all live in some kind of world we create for ourselves. And I think that what happened is that built into that world were very enlarged expectations about what life was going to be. There's been this sensation of excessive expectation that, frankly, became unsustainable."
...
Asked about the biggest risks to Liberty, his media conglomerate, John Malone said his concern was this country's survival. "We have a retreat that's right on the Quebec border. We own 18 miles on the border, so we can cross. Anytime we want to, we can get away."
...
"If you've got job security and wealth preservation under lethal pressure, then you're going to take the negativism into a place that it hasn't been before," Stephen Roach, Morgan Stanley's non-executive Asia chairman and the firm's former chief economist, said. "TARP, zero interest rates, trillion-dollar budget deficits, you name it, we've thrown anything we can at the system. And that has been successful to a limited extent at stopping the bleeding, but it has not really allowed the patient to get up off the table and resume a normal life again."
What do you guys think about this? Do these scare tactics hold water or is this just a pitiful attempt to get us all buying American-made groceries to pimp out our fall-out shelters?
Sounds like the perfect time to buy!!! Total contrarian thinking for me. Those who say they are loving the market means that they are already in it.
We're not at the bottom in terms of sentiment. In 1980, the Soviets were invading Afghanistan, Jimmy Caahter was screwing up the economy, the dollar was becoming worthless, we were running out of oil and couldn't switch to nuclear, and the environmental liabilities of the past fifty years were all coming due.
We're getting close, but we're not there yet. It's still 1976 or 1977, not 1980. The bottom in terms of sentiment is still at least a few years away. People are still sticking money in their 401ks and interest rates are still super-low.
Wait for inflation to hit, interest rates to go above 7% or 8%, an angry dynosaur to come crawling out of the gulf, Iran to start a war with Israel and stop oil exports, and a terrorist attack on Indian Point or Oyster Creek nuclear reactors. That will be the time to buy; that will be when sentiment gets as bad as it was in 1980.
Then John Connor will come and save us from the machines... and Bilbo Baggins will deliver the ring in to the fire pit, we will all be safe and the economy will thrive once again :)
Only to find out that Frodo Baggins has become somewhat more greedy and pulls an Isildur on us. Thus begins The Lord of the Street.
Sounds like somebody's fund is going short.
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