Tonite, at 5pm on CNBC: Its the usual crew: Marketwatch’s Herb Greenberg, and the John "pull-no-punches" Rutledge.
Also up: I go one on one with Bear Stearns Chief Economist David Malpass (I suspect his bosses are none too happy with me).
The discussion will cover today’s schmeissing, the market’s increasing volatility, and the disappointing numbers and outlook from Wal-Mart (WMT) and Home Depot (HD). Other items to discuss:
-Financials continue to fighting off the unknown liability of their CDOs exposure;
-The definition of the word "contained"
To say the least, it should be interesting.
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UPDATE: August 14, 2007 7:39 pm
In the Alan Greenspan segment, I forgot to mention the teeny weeny detail that it is the responsibility of the Federal Reserve as Central Banker to regulate banks and their lending policies.
So all those ARMs, I/Os, 120% LTV, and Liar Loans that are all in the process of defaulting today, blowing up RMBS, CDOs, and the highly leveraged hedge funds that own them — I can place the blame for that on Alan Greenspan, too . . .
hold back no punches!!! Don’t let the other guys get in there until you’ve completed your point.
Dang, no Bowers or Luskin for Barry to go up against. Where’s Luskin hiding?
your name came up in internal meetings
they are a muddle-headed group of people. herb greenberg shd get a medal for making sense for so long, > 2 decades now by my count
Barry, Bring a megaphone so you can have a “conversation” with these guys.
Its really funny when Kudlow sets up one of his friends to agree with him and they actually have a mind of their own. He expected David Malpass to agree with his praise of Alan Greenspan but Malpass was more in agreement with Barry. I wish I could have seen Kudlows expression in high definition.
When Kudlow talks about the boom from the tax cuts and Greenspans lowering interest rates to 1% it reminds me of something Jim Rogers said. Rogers said if you gave him a trillion dollars he could throw one hell of a party too.
Kick ’em in the nads and don’t stop kicking them until they are curled in a fetal position.
I watched, and then remembered why I NEVER watch Kudlow. Still, you did a good job and there was at least one other voice in the wilderness to support you.
Great discussion on today’s show, Barry. Interesting point you made by questioning why when Greenspan had reduced FF rate to 1%, the mortgage lenders unloaded so many ARM’s on the unsuspecting housing prospective market. The smart money should have been selling fixed rate mortgages at that opportunity. Now as all those ARM mortgages face reset, the crisis in the mortgage market will worsen and prolong the recession.
It’s always the same. Kudlow and fan club look at history to try to convince themselves and others that everything’s fine. Economic activity is fuelled by credit. If credit contracts, economic activity is adversely impacted, earnings are adversely impacted and stocks fall. Add to this the psychological impact of the bad headlines and stocks get whacked further. Hold lots of cash and great bargains will emerge but nobody yet knows when. In the meantime, listen to Wilbur Ross: “I like to buy a dollar at 51 cents”.
somebody call Wilbur. i’ll be happy to pay 52c for his dollar. he can get out now for 2% return, let’s see, annualize that…. cogitating, cogitating, he’d make a mint!
Also up: I go one on one with Bear Stearns Chief Economist David Malpass
Be careful. Last time you two were on together you offered him 2-1 odds that Q2 GDP would come in under 3%.
Just to add to my previous comment. During the eighties when interest rates hit a peak, ARMs were introduced to make it easier for starter households to buy homes. But in the nineties and to this day, inflation has been contained, so young people think the low interest rate environment will continue forever. So they took advantage of ARMs so as not to crimp their extravagant life styles with some extra cash from their mortgages. Bad idea for someone entering adulthood or acquiring a new home in the eighties.
“The smart money should have been selling fixed rate mortgages at that opportunity”
No, the smart money bought the nice fixed priced mortgages (who didn’t refi during this time–we went from 25 years left on a 30 year to 15 years and only increased our payments $50 a month or so…).
Maybe all the Chinese savers will end up owning houses in San Diego…maybe a new Immigration law will allow them into the country once they own a home here?
BR – don’t forget there are other forces working against the Super Wal*Mart and Home Depot. Those institutions took some bad PR in the last few years. IMO
The general stores of your backyard. Why the 2 should combine and then you’d have a SuperDuper Wal*Mart.
What baffles me is why whoever’s sitting next to Kludgelow doesn’t just reach over and bitch-slap some sense into him. Guess he’s not looking at the same things us non-Kool-Aid -drinkin’ types are…
Larry thinks Goldilocks still has a shot at a part in the play. Not unless Goldi wants to play in, “Brother can you spare a dime”.
You wonder how in the world people didn’t see the 29 Crash coming, and then you watch Kudlow. Case closed.
I was going to post that I was a little disappointed to miss the conversation, but judging from the comments above, I wouldn’t have gotten much out of it anyways…
Oh, except that it’s not a good idea to watch financial talk shows where people try to dream up ways to convince people that Santa Clause, the Tooth Fairy, and Goldilocks really do exist… Or maybe just Goldilocks…
Sounds like you did a respectable job of injecting some truth into the discussion though Barry – Good job.
What would happen if people who are answering questions finish answering the questions even though Larry has interrupted with another question for somebody else? Man! That show is so frustrating to watch! If Larry doesn’t like what you’re saying, he interrupts and goes on to somebody else!
Kudlow: “What’s your favorite sector Barry?”
Barry: “Cash” (followed by a big grin)
I thought I was missing a lot, so I recently signed up for cable.
I watched you for the first time today on CNBC (I saw you once before on NBR). It was exhausting watching you try and convince this crowd. Talk about Mission Impossible.
Now I’m considering canceling my cable.
You did a good job of remaining professional and civil, which is quite a feat under the circumstances.
Today I had my LP of Alan Parson’s ‘Pyramid’ playing in the background with an injection of Pyschobabble during the flip.
Is NBC and Telemundo one? I asked my Senator for English closed captioning on Univision. How about it on data ch2?
Kudlow: “What’s your favorite sector Barry?”
Barry: “Cash” (followed by a big grin)
Posted by: KirkH | Aug 14, 2007 10:07:52 PM
BRAVO BARRY! :>)!!
Kudlow: What’s your favorite sector, Barry?
Barry: Cash.
When Jim Cramer was asked earlier (before Kudlow’s show), the gal who has been interviewing him lately, asked what he was buying in this tough market. Cramer said he is selling not buying. If that doesn’t convince you that Barry is right on the money, then nothing will.
“Maybe all the Chinese savers will end up owning houses in San Diego…maybe a new Immigration law will allow them into the country once they own a home here?”
Naah, they’ll buy those SD houses with cheap dollars, then they’ll crash and sell just like the stupid Japanese did with Rockefeller Center.
And frankly, I would LOVE to open the gates wide to hardworking Chinese and Mexican immigrants, but only if we can kick out useless pinko Columbia Wymyns Studies types one-for-one.. Heck, make it 3-1: 3 hardworking immigrants for one whiny pinko college student. And the college student could go to the Worker’s Paradise of their choice, free of charge: Cuba, Venezuela, North Korea, Myanmar, France.. (one way travel though, obviously)..
Dr Noisewater – I agree we have a climate here in America that MBA’s have the gravy train with laborers and engineers (mechanical, chemical, electrical) having the workload.