Mucho, the Chief Economist at Morgan Stanley blames our great hero, Uncle Al, for the bubble.
Mindless Zombie share buyers bought shares because they were caught up in the irrational exuberance and infectious greed. Uncle Al squeezed them until they squealed about high interest rates. Now the Zombies want to blame the guy who supplies the measuring sticks.
22 July link:
detnews.com
<WASHINGTON -- Americans desperately seeking to understand what happened to their once-ballooning investments and retirement nest eggs were offered a striking answer last week by the nation's premier economic policy-maker.
"Infectious greed" is behind the stock crash and corporate scandals that are erasing trillions of dollars of paper wealth, declared Federal Reserve Chairman Alan Greenspan. Otherwise, the economy is sound, he asserted.
But a growing number of economists and financial players have come to believe that the economy's troubles go beyond the avarice of a few executives. Among the problems is Alan Greenspan and the pivotal role he played in feeding a classic, stock-market bubble.
"Greenspan clearly was the lead character in the drama of the market's upside, and he's the lead now it's on the downside," said Stephen S. Roach, chief economist with Morgan Stanley & Co. in New York and one of a small fraternity of analysts who long decried the dangers of an overheated market. ...contd...>
I am tempted to short Morgan Stanley if their Chief Economist doesn't know that it was the irrationally exuberant, greed infected, Mindless Zombies at fault, not the yardstick maker. Mobs don't have a 'lead character'. The search for a 'lead character' to blame is misunderstanding what happened. Mobs are notorious for destructive behaviour and they are notoriously out-of-control mindless maniacs. There is often no lead character. Which is why they are impossible to control. They just swarm. Swarming is a new expression for cellphone linked mobs. The mob just arrives. De Novo. Leaderless. Unstoppable.
The Zombies wish to deny that they used their brains to decide to pay extorquerationate prices - but at the time, their IQs were very, very high. They knew it all, were boastful and definitely in charge of what they were doing. Now they pathetically claim to not have had their brains switched on. They were mere Mindless Zombies in thrall to the magical ministrations of the monetary Maestro.
What do you think of shorting MWD? I've never shorted anything but it would be a lot of fun to short Mr Roach and co. However, they have a very good P:E. But I suspect behind that, they have some dodgy loans on the books which could increase their P:E in a hurry.
It looks as though they could tumble further, although already well deflated: siliconinvestor.com
Mqurice |
