Conventional Wisdom: The Financial Crisis Is Over!

By Todd Harrison  DEC 03, 2010 8:10 AM

Sometimes it pays to read between the headlines.

 


It’s Freaky, it’s Friday, and we’ve got Festivus tonight. Wow, that’s a tricky trifecta if I’ve ever heard one! As I’ll be up to my eyes with a slew of to-do’s -- kissing hands, shaking babies, and that sorta thing -- I’m gonna take a slightly lighter approach to today's column.

Old School Minyans know we don’t “do” acrimony in these parts. As my grandfather used to say, “Take the high road; it’s less crowded and has a better view.” Still, once in a while an item screams across our screens and it merits attention. Yesterday afternoon, one of those moments arrived.

Banking analyst Dick Bove openly offered that the financial crisis is “officially” over. While he correctly qualified his remarks by saying that “the only entity that needs this money any longer is the United States Government,” the headline was too juicy to let slide by.

While we could debate the merits of his argument -- and counter that risk wasn’t destroyed, it simply changed shape; that liabilities weren’t erased, they were shrewdly shuffled to another realm on the taxpayer balance sheet -- we won’t.

Instead, and in the interest of keeping it real on an important day, I’ll simply share several other quotes littered throughout history that -- how shall we say -- were somewhat premature.
 


You get the gist; actions speak louder than words even when words precede actions.

I’m not a pessimist by nature, quite the opposite. I’ve learned many valuable lessons through my years that have taught me that appreciation, gratitude, and humility are the common threads of consistency and dare I say, happiness.

As we ready for tonight’s Festivus -- 500 Minyans deep and four bands at the ready! -- lemme please take a moment to thank you for your continued support of The Minyanville Adventure and of course, The Ruby Peck Foundation for Children’s Education.

Without you, there would be no “us” and that is surely something to be thankful for, particularly as our wisdom isn’t always conventional.

May peace be with you.

R.P.




No positions in stocks mentioned.

Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at todd@minyanville.com.

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