Oct

10

CramerMany signals abound that selling may soon be exhausted. Add to the growing list the TV channel selection list in my local gym. I'm told that two years ago many patrons complained about the lack of CNBC or Bloomberg News on the large flatscreens at my Park Slope gym. Now, those channels and other business channels are being banned. It seems the aerobic hipsters prefer ESPN and Seinfeld reruns to the daily blight offered up Cramer and Co.

I, like everyone else, am dumbfounded by the violence of the selloff and the near universal Armageddon sentiment. Stocks are proving to be one of the few examples of positive price elasticity of demand. Prices fall and demand collapses whilst rising prices lead to higher demand. I'm sure it has to do with some sophisticated utility theory. I wonder if the universe's greatest certainities are calamities (war, poverty, famine etc…) or can we still hope to overcome the odds? I'm banking with the optimists but is really tough going.


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4 Comments so far

  1. the boy on October 10, 2008 7:49 am

    The fact that CNBC is banned at your gym is not a sign of a bottom, but a sign of denial…”if we dont see it maybe it wont happen.” This is very typical, but is more bearish than bullish. There are still so many in denial about what is happenning in the economy, banking systems and monetary world. And until they are set straight (by force) it will not imporove. Your optimism is wonderful, but maybe realism would be better.

    Good luck

  2. Matt Johnson on October 12, 2008 6:12 pm

    I thought I read somewhere that Kramer was a net loser in the equity markets - it’s a another good example of a ‘wall streeter’ who thinks they know what their doing…

  3. Anatoly Veltman on October 12, 2008 7:57 pm

    Matt, you surprised me. I should be last to take Cramer's side; I judge him mostly random at best — but I'd never make an undocumented comment like that. He is one of the most publicly known figures. If you contributed a link, it would be of interest to many.

  4. Matt Johnson on October 13, 2008 12:36 pm

    Good point.
    I think it was the cover of Barrons, sometime in the not too distant past.
    "Jim Cramer puts on a great show, but his Mad Money stock picks have underperformed the market over the past two years."

    http://online.barrons.com/article/SB118681265755995100.html

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