Roubini perspective on new bubbles

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gatorman
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Roubini perspective on new bubbles

Post by gatorman » Mon Nov 02, 2009 10:49 am

http://www.ft.com/cms/s/0/9a5b3216-c70b ... ab49a.html

He thinks both international and US asset bubbles are developing and that we are in for a huge correction when they burst.

gatorman

dkturner
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Post by dkturner » Mon Nov 02, 2009 12:55 pm

"He thinks both international and US asset bubbles are developing and that we are in for a huge correction when they burst."

This guy is starting to remind me of Elaine Garzarelli. For those not familiar with Black Monday in October 1987, Elaine correctly predicted a huge sell-off of equities. She became the poster girl for technical analysis and was constantly badgereed for interviews. But, her attempts to capatilize on her fame all fell flat. She continued to predict that equities were over valued and destined to crash. She even created her own mutual fund, which didn't last long.

Roubini was an obscure college professor, who was in the right place at the right time in 2008. Five years from now he may well be an obscure college professor who had been in the wrong place at the wrong time over the prior 4 years.

If history is any guide, he will probably get his own statue in the one trick pony hall of fame.

Tom_T
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Post by Tom_T » Mon Nov 02, 2009 1:20 pm

I'm waiting for the Roubini Capital Management Fund to open. :wink:

zotty
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Post by zotty » Mon Nov 02, 2009 2:44 pm

Tom_T wrote:I'm waiting for the Roubini Capital Management Fund to open. :wink:
Meredith Whitney Advisory Group

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fluffyistaken
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Post by fluffyistaken » Mon Nov 02, 2009 2:49 pm

zotty wrote:
Tom_T wrote:I'm waiting for the Roubini Capital Management Fund to open. :wink:
Meredith Whitney Advisory Group
And they're hiring! http://money.cnn.com/galleries/2009/for ... une/6.html

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DartThrower
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Post by DartThrower » Mon Nov 02, 2009 2:58 pm

He'll have to come up with a different nickname than Dr Doom. Unless of course it's one of those perma-bear funds.
A Boglehead can stay the course longer than the market can stay irrational.

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Dale_G
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Post by Dale_G » Mon Nov 02, 2009 4:36 pm

Well, Fluffy is taken, but apparently "Dr. Doom" can be recycled.

The original Dr. Doom was Henry Kaufman who worked at Salomon Brothers from 1962-1988. He often prognosticated on the future of interest rates and was often bearish. He could and did move markets.

Oh, and he was chairman of the Finance and Risk Committee at Lehman Brothers when it went down the chute. I guess he wasn't bearish enough!

Dale
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walkinwood
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Post by walkinwood » Mon Nov 02, 2009 8:16 pm

Can someone translate what Roubini is saying.

I understand the carry trade to mean that you borrow the low yielding currency (the US$ in this case) and lend in the high-yielding currency (forex in this case).

So, how is this inflating equities? That's where he loses me.

Call_Me_Op
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Post by Call_Me_Op » Mon Nov 02, 2009 8:52 pm

I believe this is the same gentleman who insisted that the stock market rise in March was a "dead cat's bounce." That's quite a bounce.
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