This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Kass: Baby, It's Cold Outside

This blog post originally appeared on RealMoney Silver on Oct. 6 at 8:26 a.m. EDT.

I simply must go.
Baby, it's cold outside.
The answer is no.
Ooh baby, it's cold outside.
This welcome has been.
I'm lucky that you dropped in.
So nice and warm.
Look out the window at that storm
My sister will be suspicious.
Man, your lips look so delicious.
My brother will be there at the door.
Waves upon a tropical shore.
My maiden aunt's mind is vicious.
Gosh, your lips look delicious.
Well maybe just a half a drink more.
Never such a blizzard before.

-- Frank Loesser, "Baby, It's Cold Outside"

Baby, it's bad out there, as disorder remains the order of the day.

In searching for a song that embraces the winter of our investment discontent, the song, "Baby, It's Cold Outside" immediately came to my mind. It was originally introduced in the 1949 film Neptune's Daughter by Ricardo Montalban and Ester Williams, but its incarnations were as varied as they were splendid to listen to -- Margaret Whiting and Johnny Mercer, Ella Fitzgerald and Louis Jordan, Doris Day and Bing Crosby (my favorite!), Ray Charles and Betty Carter, Dinah Shore and Fred MacMurray, Rod Stewart and Dolly Parton and even Will Farrell.

There are only a few parallels in stock market history that have resembled the stock market crash of 2008.

The proximate causes are varied:

  • an absence of regulatory supervision (and lending due diligence);
  • gluttonous public and private sectors' accumulation of debt;
  • the proliferation of un- or under-regulated financial weapons of mass destruction (of a derivative kind) in the emerging shadow banking industry;
  • a worldwide credit contagion (which debunked the decoupling theory); and
  • an asymmetric "heads I win, tails I win" Wall Street and hedge fund compensation structure.

All of these factors have come home to roost, and with them, the world's equity markets have cratered and our credit markets have seized up.

Planet Krypton and the Stock Market Explode

Brainiac: [on Krypton's imminent destruction] If the council knew the truth, they would put me to work on an evacuation plan, a meaningless effort given the time remaining.

Jor-El: How long?

Brainiac: Hours ... this world has seen its last sunrise.

-- Superman

The Edge, my trading diary available exclusively on RealMoney Silver, has documented the slow-motion economic and credit crash repeatedly for almost three years. Back in late 2007, I outlined my concerns regarding the emerging world credit problems, a levered consumer and a levered hedge fund community.

Over the past two years, other naysayers (like myself), including Nouriel Roubini, David Tice, Bill Fleckenstein and Jim Chanos (among others), were vilified as Cassandras by most -- despite our documented (and substantive) warnings of impending doom (of a housing and credit kind). Like Jor-El's (Superman's scientist father) forebodings regarding the horrific fate of his beloved Planet Krypton, many market participants responded with a "see no evil, hear no evil" strategy/attitude. They remained ensconced on Planet Krypton, staying long stocks and concentrated in the crowded space of market leaders (mostly of a materials and energy kind), while Jor-El launched (and saved) his son Kal-El in a rocketship to Planet Earth and the short sellers stayed their course.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GS $147.23 -0.69%
GE $28.30 0.07%
AAPL $94.27 -0.76%
FB $101.00 1.47%
GOOG $684.12 0.89%


Chart of I:DJI
DOW 15,914.74 -99.64 -0.62%
S&P 500 1,851.86 -0.35 -0.02%
NASDAQ 4,283.5920 +14.8290 0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs