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Madness Vs. Doom

Jim Cramer on Nouriel Roubini:

Noriel Roubini, the New York University professor intoxicated with his prescience and vision, comes out with the astounding view that "some" U.S. banks will be nationalized. Forget that we have had one of the largest rallies in history since the oracle of Greenwich Village spoke last.... I know Roubini and Nobel laureate Paul Krugman are both on the nationalization jihad, and they are compelling figures to believe in.... But what Roubini and Krugman might be missing is the ability to build, through earnings and higher stock prices and forbearance, a perfect combination of lower loan charge-offs, more equity, and therefore increased solvency.

Or, in other words, those who think that things are not better off since the March bottom strike me as people who are as unrealistically bullish during the 2008 top. You have to adjust if the facts adjust and perhaps Roubini's doing that by saying that "some" banks will be nationalized. If he isn't, I think he will be wrong.

Roubini on Cramer:

Cramer is a buffoon.... He was one of those who called six times in a row for this bear market rally to be a bull market rally and he got it wrong.... Once people get the reality check, then it's going to get ugly again.

I know where I'd put my money, unfortunately.

--Christopher Orr