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This video has been on the net, and probably the most watched financial video over the past week (Over a million views) (Cramer or market meltdown). Frankly speaking, there is just too much emotion and Jim has “entertained” pretty well. But it makes me wonder, is it that Bad, maybe? Is US economic administration such a poor think-tank that it will send Mr Bernanke, who can’t understand what’s going on and decide for at least one economic indicator (aka Interest rates) for the strongest economy in the world, for probably the 3rd most influential job in the world (after Mr president and Mr/Ms Defence secretary)?
Or is something else? Did Jim lose tons of money? or was it part of Jimmy’s call to Jim (read FT.com story) last week? Here is a thought provoking article from Mr Donald (Turning Lemmings into Lemonade) that captures a brief analysis just about this video.
I am not saying things are not bad. Sub-prime is $2 trillion industry and what we might be seeing is just the tip of iceberg. BSC was hit, BNP Paribas was hit, CFC is hit, and now it’s Goldman’s turn, global alpha hedge fund is down 26%, fund withdrawals are 3 times than deposits. And there maybe more to come.
So take your pick. Step back and think hard. My feeling is that, musical chairs game is on. The losses are being passed from one hand to another. If you have invested into some exotic investments,irrespective of the country you reside, that you didn’t understand, pull out the terms and conditions and hopefully you are not the one whom the losses are being passed to.
Profitable trading, OP