Monday, December 1, 2008

Stupidest Statement on Earth

I have taken the likes of Hank Paulson to task many times in this blog. He and others like him Greenspan, Rubin, Raines, O'Neal, et al are a major reason we find ourselves in the mess we are in. That said, sometimes others, once groupies worshipping at the altar of all he does, step over the line and bite that proverbial hand that had fed them. A Mr. Ken Rosen who is a real estate hedge fund manager and professor of real estate economics at Cal-Berkeley does just this in a article, New Crisis in Commercial Real Estate Looms, brought to my attention by Mike Panzner over at Financial Armageddon.

"The system has never been tested for a deep recession".

"He's (Paulson) created havoc in the marketplace by changing the rules. It was the stupidest statement on earth" Rosen said.

The first quote stands on it's own for idiocy of the highest order but the second quote takes the cake.

Stupidest statement on earth, huh professor Rosen?

Let me tell you dear professor what is stupid. Stupid is sending your kids to college, paying through-the-nose tuition for courses like yours, so an ignoramus like yourself can blather about how real estate always goes up.

You want more stupid dear professor? More stupid is Cal-Berkeley employing shills like yourself who actually believed recessions were banned from existence and the likes of Greenspan/Rubin, Bernanke/Paulson would always be there to bail out imbecilic decision making hedge funds like yours.

You want even more stupid dear professor? Even more stupid is the fools with a capital F that gave money to a boob like you to manage. Now that is stupid so cut Mr. Paulson some slack as your quotes have provided ample evidence he has ample competition for title of stupidest statement on earth.

This episode depicts what is happeing in abudance. That many loyal Greenspan and Bernanke soldiers,(Wall St. types, hedge funds and various apologists) are breaking ranks and deserting. I have mentioned before that it is standard operating procedure for Wall St. and its brethren to circle the wagons and stick together. For a while, in the beginning they did, but now it is every man/woman for themselves and is not pretty. I have remarked before that it would be interesting watch the cannibals turn on one another.

Some may find my taking to task of Professor Rosen harsh and over the top. I do not know the good professor and fully expect him to be an upright citizen in good standing in his community. I cannot seem to find any quotes from him, when real estate portfolios were flourishing along with their attendant bonus's, handing any of the credit to men like Paulson or Greenspan.

There is an absolute dearth quotes from any managers that said 'my performance is due to an extremely easy and accomodative Fed and Treasury that always had my back'. I am aware of only 1 man that has admitted such and that man is Peter Lynch of Fidelity Magellan fame, who did this in his book One Up On Wall Street. That being the humility to admit he had the good fortune to manage money in a wonderful bull market.

That said, facts are facts and the village idiots need to be exposed for the village idiots they truly are. Never ever forget that the only thing worse than someone who knows nothing, is someone who thinks they know something. That is truly horrifying, most especially so when your financial survival is at stake.

Good speculating to you all and never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Short 1 unit Apple ticker AAPL @ $110.90 stop @ $100.53
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