Herb Greenberg Calls Out Larry Kudlow

Following last week's NYT coverage of the blogger debate on excessive negativity, I was amused when I saw this blog post from my pal Herb Greenberg:

"But to be taken to task for having rightfully proven that much of America is perched too precariously on too big of a pile of debt — and that this housing thing wasn’t and still isn’t totally “contained” — is simply, well, wrong-headed.

(I can still see Larry Kudlow rolling his eyes at me, on set at CNBC, when I would mention, for the umpteenth time, the significance of the looming mortgage mess — and that this mess would extend beyond subprime to cut across all FICO scores; notice that neither Barry nor I have been on his show lately.)"

Now, I'm friendly with Larry, and would never want to embarrass him on the air -- but Herb is not the first person to make this point. Indeed, several other people -- including some from CNBC -- have also noticed, and commented, on that coincidence.

During the past year, on air, several of Larry's guests have told me:

- I was too real estate obsessed (2006);
- Sub-prime was contained; (2007)
- Real Estate didn't matter; It's a small portion of the economy (2006/07)
- The economy is fine (really) (2008)

The last was also the title of a recent self-delusion in the oft-hallucinatory WSJ Op-Ed pages.

Cognitive dissonance can be a bitch . . .

Source:
Too Negative — Who, Me?
Herb Greenberg
Marketblog, 7:51:47 PM January 27th, 2008
http://blogs.marketwatch.com/greenberg/2008/01/too-negative-who-me/

Comments

[sliman:]

Please Barry!! Your call for 2006 on the S&P was way off off to the downside. Being right now does not make up for being wrong the last two years.

2008 Feb 04 10:00 AM

[Bucerias Boy:]

Larry Kudlow is a clown. His incessant cheer leading in the face of any and all negative news destroys his credibility.

2008 Feb 04 10:23 AM

[Still Renting:]

Actually, being wrong by a decade or so is one thing. Being wrong by a year or so is different, especially when you have a fed, et-al, that are willing to put off the inevitable as long as possible. It will take longer to get here than it should - as this one has.

But when it DOES get here, it will unravel faster and farther than many experts predict as well.

IOW, it takes longer to happen, but when it does, it happens fast.

2008 Feb 04 10:40 AM

[armadillo:]

I believe Bill Gross was off by a year or so too (I was off by a few which is a little too early)......making a nice buck now.

2008 Feb 04 01:17 PM

[chriscql:]

Greenberg is wise to stay away from Kudlow's show since his presence is only lends false credibility to Kudlow's non-existant 'open mindedness'

Beyond which, why would he want to be on a show that honors people like Ann Coulter. UGH.

2008 Feb 04 02:06 PM

[pochovilla:]

Think of Kudlow as a space meterologist "Mr Sunshine" From 250,000 ft above the earth he can spot sunshine just about anywhere on earth. To him a little rainfall, flood, tornado or hurricane is just a passing event. Tsunami's don't count.
In one on one, he occasionally makes a reasonable statement. In a group setting..forget it....it's all "Mr Sunshine".

2008 Feb 04 03:58 PM

[tlc8386:]

Larry Kudlow only see things perched on his top 1% of the population--he has health care--he has a pension--he has stocks--he is rich. It causes them to become totally blind to the rest of the 99%.

2008 Feb 04 04:57 PM

[unimpressed...:]

Great article and comments! I stopped watching Kudlow a little over a year ago. It is nice to realize, once more, I made the right decision.

2008 Feb 04 05:27 PM

[wdj3368:]

Kudlow is as daft as his hero Reagan was !!

2008 Feb 04 05:59 PM

[elwind45:]

Having ole scudlow on either end of the chart, allows the bell to form in the middle. He is rich! The problem with ecomomic forecasts are a assumption that," small business and the individual move the economy". The rich move the country. The little person has very little sense of the downturn. The uber rich like larry K, no knowledge. The middle RICH, " the sky is falling? The shiatty bell curve!

2008 Feb 04 09:18 PM

[energywrap:]

People like Kudlow are a big part of the problem we find ourselves in now. Its called DENIAL!! He is much like his Counterpart in Politics, that Idiot Sean Vannity, who if you listen to him, things are going so well in Iraq Disney has got Haliburton doing surveys for opening the next theme park in the Green Zone so that McPain and Bush and all the other Parasitic War profiteers can vacation their, with all the Tax payer money they are embezzling through the likes of Carlyle, Blackwater, Bectel,Hali, General Dynamics and others...the Only real believable reason we are there, unless you had a religious epiphany and suddenly believe the Iraqis are more important than Americans and that stupid fantasy that somehow unless we keep wasting our young Brave Troops lives over there, the Insurgents will miraculously start landing on our shores tomorrow!! What a Croc! As if with our huge porous Borders they somehow can't find us on the Map now! Why because as we drain our resources over there it is Somehow a deterrent? As if the fact that we are draining our Manpower, Money, Moral and Resources it's not actually encouraging the enemy to come and hit us over here while Bush has are guard down domestically, with all our defensive eggs in One big treachurous Iraq Basket!! Republicans Stronger on SECURITY?? THAT's the BIGGEST PROPAGANDA LIE the Media ever came up with!! Ignorance and NO PLAN isn't Strong, or PATRIOTIC, its WEAK! AND STUPID!! Anyways, I digress, back to Kudlow...I would give anything if someone would replay a tape of his show 18 months ago when he was spouting off in pure optimistic and euphoric ignorance, an art that he has all but perfected, "Claiming, Subprime? What is Subprime, don't worry, it represents such a small sector of Mortgage business and thus the economy that it won't spread or affect the rest of the markets"-- He should be ashamed and embarrassed, for someone who is so publicized and supposed to have knowledge about the real implications of the crisis and how it could really impact people's portfolios. But instead, like most on TV, He could not have been more wrong, and instead of providing any real value or insight, he is no better than any junior broker working at Bear Stearns, clueless as to the outcome! Anyone can get on TV and cheerlead about how hopefully times will get better and stay confident about the Fed, and while the Market has almost shed 2000 points off the Dow, his message is basically "Close your Eyes and pray"! Like when the Tech Bubble Burst back in 2000 there were tons of misinformed Brokers who told their clients when the Nasdaq had fallen from 5000 down to 3800 to BUY because this was the DEAL OF THE CENTURY and then the Bottom fell out and they Buried their Clients!! He is just an overpaid Cheerleader for the Corporations and like 97% of the WALLSTREET PUNDITS THAT Got it WRONG in 2000, if you follow him, he will bury you too!

2008 Mar 24 11:23 PM