"If we did what the government did [promoting false 'green shoots'], we'd go to jail." http://www.bloomberg.com/avp/avp.ht...//media2.bloomberg.com/cache/vY36ExWO8TB0.asf
@ 12 minutes in, Langone tells Rhomer that things are getting much worse, not better, and stimulus package will backfire.
Saw it this morning. Langone is great and speaks the truth. NO suprise that he's not a regular on bubblevision (CNBC). Another bearish guy, Rosie, is feeling his oats after the employment report. This from his daily letter today ... We still marvel at the shills who believe that the market is fairly valued and that somehow it is not fair to compare how far the market has ballooned over the March lows since those lows were âartificialâ. Excuse me. The 676 closing low on March 9th was any more of an egregiously oversold low than the October 9th/02 low of 776? Or the August 12th/82 low of 102 when the S&P 500 was trading at an 8x P/E multiple, a 6 1/2% dividend yield and below book value? It always appears to be an oversold low at the trough, with the benefit of perfect hindsight. But the stock market, at the lows, was merely pricing in reality, a -2.5 GDP growth trajectory which is exactly what we will see posted for 2009 when the books are closed for the year. The market was down 60% from the highs, but guess what? So were operating earnings. And reported âunscrubbedâ profits tumbled 90%. To think we can have a 60% rally from the lows in six months and believe that somehow this is normal â please. By the time the market is up 60% from any low, it usually is up that amount in three years, not six months; and over 2 million jobs have been created. This is the first time the market has rallied this much with the economy shedding 2.5 million jobs
Fleckenstein made the comment in an interview that the best case scenario would be similar to the late 1970's. Sounds too hopeful. NFP is the key.