Friday, March 08, 2013

"Next time, definitely"

In the late 1990's CNBC money maven James Glassman and a co-author loudly proclaimed everything about the economy was SO awesome the Dow-Jones would be hitting 36,000 by the time George W. Bush eliminated the deficit for good and ended terrorism by August 2001, if I recall.

Missed it by that <------------------------------------------------------------------------->much. 

But like any conservative or corporate apologist there is no amount of being wrong that can keep them from their six and seven-figure gigs while asking for people in the five-figures to be fired. Less than two-years ago, Glassman announced he was wrong then and would apparently always be wrong forever into the future.
Slowly and reluctantly, after three decades writing about finance, I have come to the conclusion that because the world has changed, investment strategy must change with it. The old rulebook, which served us so well for nearly a century, needs revising. The rush of recent bolts from the blue - the attacks of 9/11, the BP oil blowout, the "flash crash" that sent the Dow tumbling 1,000 points in minutes and the unprecedented collapse of U.S. home values - is no fluke.
And now two years later, FLUKE YOU!
Today, the far edge of that time frame is clearly in reach. From its low of 6,547 on March 9, 2009, the Dow has risen 117 percent. Another 117 percent in four years would put it at 31,022, just 16 percentage points shy of the magic number. ... How fast can the U.S. grow? Four percent is attainable, but I’d settle for 3 percent. Get there quickly, and we’ll get to Dow 36,000 quickly, too.
What kind of job can a guy who is wrong all of the time get anyway?
James K. Glassman is executive director of the George W. Bush Institute.


StonyPillow said...

Sounds reliable. You just have to know how to read him.

Quantitative Ease On Down The Road has been a smashing success. The Dow has made good its losses and reached the Emerald City. All is well.

Anonymous said...

Heck of a job, Jimmy

Anonymous said...

What a perfectly constructed post!!!! Step by step - and then that ending. So good.

(So good I'm stealing it.)

Anonymous said...

"Glassman, I see here that you made one correct prediction in 2006. As you well know, this is a violation of your terms of employment and you are no longer suitable to represent the George W. Bush Institute. You're fired."

pansypoo said...

faith base economics works as much as faith based healing.