Capital Commerce

Roubini vs. Cramer: Who's Right?

By James Pethokoukis

Posted: April 8, 2009

So CNBC's Jim Cramer criticized Nouriel "Dr. Doom" Roubini in his blog for being too persistently gloomy in light of the stock market's recent rebound and some bits of positive economic news. Roubini responded by attacking Cramer as a "buffoon." Roubini also thinks the worst is not yet over for the economy.  A few thoughts on this financial commentator flare-up:

1)  While Roubini has been correctly bearish, let's also not forget that one reason he was so bearish originially was that he thought the dollar would collapse, sending interest rates soaring. So he was kinda right for the wrong reason, at least at first.

2) The economy could strengthen and the market could head higher ... while at the same time unemployment continues to worsen. In fact, that is exactly what is likely to happen at some point. It is a familiar economic dynamic.

3) I would be surprised if the same folks who "correctly" called the recession are also able to call the recovery. Could happen. But I doubt it. Luck is often mistaken for skill. And identifying economic inflection points is tricky business, indeed.

Uhhh

Nouriel Roubini versus Jim Cramer?

That's like asking who would win in a fight: a super-advanced extra terrestrial or a dead amoeba.

Indict Cramer of CA @ Apr 10, 2009 07:13:41 AM

Looking up?

I think we have seen the bottom. I'm not saying there won't be ups and downs as we ride the waves of volatility but the ship has stopped sinking for the most part. The credit market is improving that is one of the first signs, The bad mortgage issue is slowly being shored up, and the stimulis is pumping money into projects and employing people. Unemployment is still going up but the rates have slowed. I'm going with Jim Cramer on this. With the market off it's lows last month I think things are looking a bit more positive.

Cody of ND @ Apr 09, 2009 19:33:44 PM

Dorothy (below)

you must still be mentally in Kansas.

Businesses DO NOT hire even one person more than they need just because they get a tax cut. They never have. It's the opposite.

What high end tax cuts actually do is create an incentive for more jobs to be eliminated to increase the bottom line BECAUSE THE BOTTOM LINE IS NOW TAXED LOWER.

I stopped believing the Chamber of Commerce stuff about 20 years ago (after being a corporate accountant for a couple of decades). You should give that stuff up too.

Muser of NM @ Apr 08, 2009 16:07:54 PM

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Capital Commerce

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U.S. News business reporter Matthew Bandyk examines the issues, people, and debates that shape the nexus of political and economic life in the nation's capital.

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