Roubini is getting on my nerves, because he's been pessimistic forever. When the market dived in 2008, suddenly everyone anointed him a guru--even though he was bringing the same negative shtick for over a decade. Now, he's made a prediction I think will be proven false:
And how long will it be before the administration goes in formally for nationalization? “I think that we’re going to see the policy adopted in the next few months . . . in six months or so.”
Set your calendars. If by August 22, 2009, Bank of America (NYSE:BAC) and Citigroup (NYSE:C) are still private entities, Roubini will be wrong. In fact, it looks like he's already wrong--the White House has publicly announced it will not nationalize banks and has taken action to prop up Citigroup.
Bonus: I've never heard of a Jim Morrison market, but apparently it's when "The future's uncertain and the end is always near." Check out this pessimistic Barron's article.
I would have preferred the more optimistic "Take it as it Comes" instead:
Go real slow
You'll like it more and more
Take it as it comes
In other words, slow down Mr. Roubini.