CNBC is so right on the money...or are they?
(/begin sarcasm)
If you haven't had the chance to see how 'right' Jim Cramer has been or have been wanting to see some fine CNBC footage which will leave you laughing then look no further. (/end sarcasm)
Jon Stewart and the Daily Show put together some absolutely horrible guesses, gaffs and guests from CNBC reels... I lol'd heartily.
The Daily Show Video Link
Did I mention that my cousin who is a registered investment advisor was recently upset because Citibank preferreds which had been paying a nice dividend were looking like 'that party is over'. My thoughts? Did you really think (being that he was also previously a mortgage broker during the upswing) that the party for their shareholders would never end? Do you still think that debt holders won't be required to take a haircut eventually? Has the news of late not made it very clear that banks/financials are the worst performing sector and probably NOT a good bet to place ANY of your money?
It astounds me. I picked up 'The Black Swan' recently, and I hope to eventually get the time to read it. I think the premise is actually very foolish albeit for one thing: When applied to financial stock markets...the ideas that something just 'can not happen' almost means that at some level, it could happen. Also I think this book came out at just the right time when several deviation moves have occured making many of the previously thought 'impossibles' not only possible but they happened. Otherwise, I think the book's premise is somewhat simplistic.
The name from the book comes from the fact that for the longest times in our own history and even in fairy tales and the like...swans were white. Swans can only be white...until a black swan is found. Then we as a society begin trying to explain away why we were ignornant to the possibilities of 'black swans' and reason it away. This is basic common nature. There were those who knew the levies in New Orleans were old and breaking down, but it took a 'black swan' (Katrina) before we decided to look at it and do something for the future.
For financial institutions and the stock market, there is this same idea which I think needs to be revisited. Markets are nothing more than a froth of rational and irrational behavior. A stock is only worth what someone else is willing to pay for it. There is no other basis. Stocks can trade below the actual asset recapture (should one be necessary) of the firm. They could trade at $0. So when people say that a stock can't go any lower...sure it can. When they say, it's not possible for XYZ corporation to be broke...sure it is. No one thought three years ago that it was even 'POSSIBLE' for Lehman Brothers to be totally defunct. It can happen, and for Lehman, it did happen. Massive ponzi schemes are now being reported and investigated. What some people thought was safe and secure was nothing more than mirage...a hole which swallowed up their money. This re-evaluation about 'RISK' is really necessary. Home prices could never go down...sure they can. People will wake up to that definition either by understanding and reading or by force of market 'black swans'.
If you haven't had the chance to see how 'right' Jim Cramer has been or have been wanting to see some fine CNBC footage which will leave you laughing then look no further. (/end sarcasm)
Jon Stewart and the Daily Show put together some absolutely horrible guesses, gaffs and guests from CNBC reels... I lol'd heartily.
The Daily Show Video Link
Did I mention that my cousin who is a registered investment advisor was recently upset because Citibank preferreds which had been paying a nice dividend were looking like 'that party is over'. My thoughts? Did you really think (being that he was also previously a mortgage broker during the upswing) that the party for their shareholders would never end? Do you still think that debt holders won't be required to take a haircut eventually? Has the news of late not made it very clear that banks/financials are the worst performing sector and probably NOT a good bet to place ANY of your money?
It astounds me. I picked up 'The Black Swan' recently, and I hope to eventually get the time to read it. I think the premise is actually very foolish albeit for one thing: When applied to financial stock markets...the ideas that something just 'can not happen' almost means that at some level, it could happen. Also I think this book came out at just the right time when several deviation moves have occured making many of the previously thought 'impossibles' not only possible but they happened. Otherwise, I think the book's premise is somewhat simplistic.
The name from the book comes from the fact that for the longest times in our own history and even in fairy tales and the like...swans were white. Swans can only be white...until a black swan is found. Then we as a society begin trying to explain away why we were ignornant to the possibilities of 'black swans' and reason it away. This is basic common nature. There were those who knew the levies in New Orleans were old and breaking down, but it took a 'black swan' (Katrina) before we decided to look at it and do something for the future.
For financial institutions and the stock market, there is this same idea which I think needs to be revisited. Markets are nothing more than a froth of rational and irrational behavior. A stock is only worth what someone else is willing to pay for it. There is no other basis. Stocks can trade below the actual asset recapture (should one be necessary) of the firm. They could trade at $0. So when people say that a stock can't go any lower...sure it can. When they say, it's not possible for XYZ corporation to be broke...sure it is. No one thought three years ago that it was even 'POSSIBLE' for Lehman Brothers to be totally defunct. It can happen, and for Lehman, it did happen. Massive ponzi schemes are now being reported and investigated. What some people thought was safe and secure was nothing more than mirage...a hole which swallowed up their money. This re-evaluation about 'RISK' is really necessary. Home prices could never go down...sure they can. People will wake up to that definition either by understanding and reading or by force of market 'black swans'.