October 09, 2008

Greed and Fear, or, Thanks for the cheap stocks!

Wall Street went on sale this afternoon and as I pulled cash from everywhere I could to buy the wonderful companies that were on sale, the only thing I could think of was something I was told by a manager more than a decade ago...


Be fearful when others are greedy, be greedy when others are fearful


So, you think that Altria was worth 4% less today than yesterday? Who am I to argue with your stupidity? I'll be happy to take those shares off your hands. And yes, bitches, Altria is all you get. I'm not telling you what else I'm buying.

Here are a few choice quotes from the Times article published late today...

Trevor Callan, a financial planner in La Jolla, Calif., said he has been bombarded by calls since Wednesday from nearly every one of his clients.

“The bottom line here is we’re witnessing complete panic,” Mr. Callan said. “There are certainly periods of time where rationality is thrown out the window, and this is one of them.”

Yep. It's true. Mr. Callan is getting our MOTO of the Month Award. It's very prestigious. He SHOULD be quite excited.

Michael Cerenzie, a film producer, said he has been selling out of his million dollar position in banking stocks and is looking to invest in companies specializing in natural gas and energy.

“This isn’t going to come back,” he said of the recent stock market losses. “This is going to be a long one. We are not going to see returns like we did in the past.”

His business partner, Christine Peters, has her money managed professionally, but also sold her bank shares this week. She has replaced them with beaten down shares of IBM, as well as investments in gold.

No, much like your career, stocks are in permanent decline. Thank you soooo much for selling me yours (and at a discount to your purchase price)!

And finally I give you the Dumbest Smart Man In The World

Robert M. Solow, who won the Nobel prize in 1987 for his work on economic growth, said that “potential for instability was always there” but he is caught surprise at the magnitude of the problems in the economy and financial system.

“I’m as puzzled as anyone else,” he said. “I don’t have any particular wisdom to sell.”

It's a PANIC. You don't figure that out. There's nothing to figure out when humans behave irrationally. It's rather pret a porter.

Krugman, for his part, feels as I do about still more bloviating from our President.

Finally, I'd like to leave you with this from dear, sweet, innocent and wonderful Larry Kudlow whom I've spent years deriding and who now looks like the asshole.

I have long believed that stock markets are the best barometer of the health, wealth and security of a nation. And today's stock market message is an unmistakable vote of confidence for the president. Even the best low-tax, limited-government economic policies can be thwarted if the men and women going to work in the morning can't get safely back to their homes and families at night.

Really, Larry?


Posted by mcblogger at October 9, 2008 10:23 PM

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