Monday, February 23, 2009

Roubini: Banks will be Nationalized

N. Roubini is getting on my nerves, because he's been pessimistic forever. When the market dived in 2008, suddenly everyone anointed him a guru--even though he was bringing the same negative shtick for over a decade. Now, he's made a prediction I think will be proven false:

And how long will it be before the administration goes in formally for nationalization? “I think that we’re going to see the policy adopted in the next few months . . . in six months or so.”

Set your calendars. If by August 22, 2009, Bank of America (BAC) and Citigroup (C) are still private entities, Roubini will be wrong. In fact, it looks like he's already wrong--the White House has publicly announced it will not nationalize banks and has taken action to prop up Citigroup.

Bonus: I've never heard of a Jim Morrison market, but apparently it's when "The future's uncertain and the end is always near." Check out this pessimistic Barron's article.

I would have preferred the more optimistic "Take it as it Comes" instead:

Go real slow
You'll like it more and more
Take it as it comes

In other words, slow down, Mr. Roubini.

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