Saturday, May 24, 2008

The Bears Are/Were Delusional

If you are illusional or delusional, this is must see TV!

July 2, 2007


Dow: 13,535 Euro: $1.36 Oil: $71 Gas: $2.25 Natural Gas: $6.76 Gold: $659

Bob Pisani: Don Luskin, am I delusional here? ... The bulls' scenario seems intact. Am I delusional about this?

Don Luskin: No, no, you're not delusional. It's the bears who are delusional.

8 comments:

  1. Peter is my hero.

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  2. wawawa,

    I'll post a bonus video. I'm fascinated every time Peter talks.

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  3. Ha Ha, C @ $51. The good old days.

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  4. Anonymous,

    Ha Ha, C @ $51. The good old days.

    Good eye! GM closed at $38. Good times. Good times. C is now $21 and GM is under $18.

    Those two stocks were my barometers of the economy back in 2004 and I didn't like what I was seeing. I had a debt bubble epiphany and I was extremely skeptical of GM's $10 per share earnings target. It seemed laughably optimistic.

    I sold Citigroup @ $45.12 on July 13, 2004. It was my second largest holding. GM closed @ $44.68 (I never owned that one though). Right or wrong, this thinking bled into all my investment decisions back then. I watched Citigroup anemically inch higher for three years wondering what would happen next, if anything. I was starting to wonder if I wasn't just being paranoid. What may have saved me was Force 10 from Navarone. See the movie? They plant the explosives. The dam does not blow up. They blame the engineer. He calmly replied that these things take time. The cracks formed and then the dam collapsed.

    Force 10 from Navarone
    http://www.imdb.com/title/tt0077572/quotes
    Mallory: [notices the dam hasn't collapsed yet] Miller! That useless git!

    Surely the Fed in 2004 planted enough 1% explosives to blow up the dam. That was my thinking anyway.

    Meanwhile, GM was preparing a Bill Clinton style joke to play on investors. I doubt they "appreciated" it.

    January 8, 2004
    GM expects to top '04 forecasts
    http://money.cnn.com/2004/01/08/news/companies/gm_outlook/

    GM Chief Financial Officer John Devine said that the automaker's goal of earning $10 per share by mid-decade, or sometime between 2004 and 2006, will be "very challenging, but we plan to get it done."

    December 17, 2004
    GM CEO Sees Weaker December Sales
    http://www.foxnews.com/story/0,2933,141868,00.html

    Wagoner reiterated previous statements from other GM executives that the automaker would not hit a "mid-decade" target of earnings of $10 per share next year.

    "It depends on how you interpret 'mid,' but it doesn't look like next year is going to be the year," he said.

    GM executives have said that the automaker may not hit the $10 per share target until 2006.


    I pretty much interpret 'mid' as being the middle, but hey, maybe that's just me. As for the 2006 prediction, uh huh, yeah right.

    http://politicalhumor.about.com/cs/quotethis/a/clintonquotes.htm

    It depends on what the meaning of the words 'is' is.

    It depends on how you define alone…

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  5. I believe it was in that same timeframe that Rick Wagoner saw gas prices coming back down to about a buck-fifty, when GM was readying its release of its new lines of pickups and SUVs.

    At that point I told all friends and relations to dump all GM stock if they had any….

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  6. slg,

    If you can't trust Rick Wagoner who can you trust? David Lereah?

    There I go asking the tough questions again. But seriously, sometimes he tells us all we need to know.

    April 25, 2007
    General Motors is building a tech base in India
    http://timesofindia.indiatimes.com/Opinion/Interviews/General_Motors_is_building_a_tech_base_in_India/articleshow/1952209.cms

    As the CEO of a global auto giant, you are perhaps the last to visit India.

    That's why he's paid the big bucks.

    Q: When do you see your India operations becoming profitable?

    Tomorrow wouldn't be soon enough for me.


    Are we supposed to take that literally? If tomorrow won't be soon enough, then what?

    Closing stock price on April 25, 2007: $31.07

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  7. C at $51? How about Bear Stearns?

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  8. David,

    I think you've figured it out.

    It's the bears [Stearns] who are delusional.

    It all makes sense now, lol.

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