'Doctor Doom's' Crash Tweets Make Investors Sick
NEW YORK ( TheStreet) -- Other than telling us how they smart they are, I am not sure what economists like "Dr. Doom" Nouriel Roubini accomplish with repeated warnings that, ultimately, amount to little more than self-aggrandizing and incessant self-promotion.
Roubini's continued calls for Armageddon provide as much utility as a Southern California traffic report. The 405 is jammed and so is every nearby alternate route, so just stay where you are.
Even meteorologists offer more useful information. There's a heat wave -- seek shade, drink plenty of water. Or it's going to rain, grab an umbrella as you head out the door.
Over the weekend, via his Twitter feed, Roubini provided an update we never asked for on his latest "perfect storm" prediction:
@Nouriel 2013 perfect storm scenario I wrote on months ago is unfolding: EZ crisis, US stall speed, China hard landing, EM stall, MidEast time bombReally? I was born in 1975. From my perch, the Middle East has been a time bomb for at least 37 years. Every once in a while, like everything else in the world, it explodes. Some people I see on the beach walk around high all day. Some economists argue that the sky is always falling or about to fall. The rest of us find a little buzz as well as our doom and gloom in moderation. In other words, we seek ways to live and live well, rather than let some self-promoting Econ professor scare the crap out of us on regular basis so he can continue to get paid and paid well. Roubini sure as heck will not suffer if his dire predictions come true. He's insulated from pretty much any and all global financial carnage. With his Tweet, Roubini managed to get his "Global Perfect Storm" blog post back on the front page. Many major media outlets ran with the story. "Roubini Says Roubini's Prediction of Global Economic Calamity on Track". For some reason, outlets that cater to investors cannot get enough of Roubini. In his blog entry, Roubini tells us "equity markets are falling everywhere." That's a nice, broad statement to make. I guess that's why he teaches "macro" economics. I would argue that equity markets, particularly in the U.S. and Canada, are volatile, not necessarily falling. It's all about your historical and forward-looking time frames and, even more so, the stocks you pick.
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