Cramer is right about the market and Roubini is wrong.
Cramer recently wrote in a blog post that Roubini is "intoxicated" with his own "prescience and vision" and said Roubini should realize that things are better since the stock market bottom in March.
"He keeps insulting me personally and saying a bunch of lies," Roubini responded.
What Roubini should really be concerned about is not the nonsense Cramer is spewing about him, but what I am calling him, i.e. a Keynesian.
As a Keynesian, it's clear Roubini doesn't understand the business cycle and has no clue as to the power that the Fed's money printing has on the economy and stock market. That said, I'm not sure Cramer understands the biz cycle either. But he is definitely in sync with this market. It will continue to go up.
Roubini has been saying the latest surge is just another bear market rally. He expects the market will test the previous low because of worse than expected macroeconomic news, disappointing earnings and because banks will fail after the stress tests come out.
Who knows what is really going on with the political motivations behind the stress tests? But the stock market and economy are improving, not because of a Bear Market rally, but because it is a Bernanke fueled money printing run.
Cramer 1 - Roubini 0.
Ok, but for how far and how long?
ReplyDeleteWhat do you mean by "the stock market and the economy are improving" due to Bernanke's money party? The nominal values are increasing, but this can't be seen as any legitimate sort of improvement.
ReplyDeleteAnd if it's not a material improvement, but it's interpreted as one, then is this not actually a kind of bear market rally after all?