Quickthink

So, are we on the eve of destruction, or is the meltdown on Wall Street just a f***t in a windstorm? Here are two views

 A VC thinks that we should run out and buy Google if it goes down to 400. He posted on this before, and repeats the idea today, even after the bad news of the last three days. Well, he may be right. Investors are running around like chickens sans heads. Maybe calmer heads will prevail  … soon.

Tech banker Bill Hambrecht also thinks that the crisis will play itself out over time (a year or so) without damaging fundamentals — even if a few more banks go down the tubes.

Wharton Finance Prof. Jeremy Siegel is optimistic about stocks (and after all he does get his editorials published in WSJ).

 But UK quantitative financial analyst Paul Wilmott thinks

Yet it’s difficult to believe that markets are not going to undergo a climactic implosion some time soon. If the current situation doesn’t fill investors with fear, then what are they smoking?

Hmmm …. not sure I follow Paul , could you be a bit more clear when you say that the cancer in the financial system has metastasized? …  Oh never mind.

My real worry is that it seems even John McCain has woken up to the idea that there may be a  crisis at hand. He has switched from the economic fundamentals are sound sound bite to there is evil greed in Wall Street  sound bite. He now promises …. get this … tough new regulation (now that’s a good one coming from a free the markets from the burden of regulation guy)

I am beginning to wonder. Is the subprime mortgage sucking our liquidity dry — Something like this? (From FFFFound), Errr … the image reminds me why I no longer eat pizza after 10:00 pm.

 FOLLOW - In a crisis, one should run for expet advice. So I was pleased to run to Knowledge at Wharton to see whether the world will end. Answer —- maybe. Gulp. But maybe not. Great!

This entry was posted on Thursday, September 18th, 2008 at 11:26 am and is filed under Finance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.