Model Portfolio timbo56:SSOF1

It is indeed difficult to give advise counter to that of Dr. Roubini, because he has a great track record. I will direct my readers' attention, however, to the fact that he had a great track record under the Bush administration. If one argues that government intervention is likely to be ineffective, it helps immensely to have an administration in power that fails to take action, even when action is urgently required. The Bush administration repeatedly failed to act, and the resultant economic disaster is just what Dr. Roubini predicted. But the Obama administration has acted, and so I believe the result will be different. Bush failed to address the housing price crisis, which led to the banking crisis. The banking crisis led to the bankruptcy of Lehman Brothers, which the Bush administration failed to address. Then they came up with TARP, which was darn hard to get through Congress and which appears to have been poorly administered. The resultant freeze up in the credit markets led to plunging employment, which was left unaddressed with the obvious and entirely necessary palliative of fiscal stimulus.

So, I dare to disagree with the very impressive Dr. Roubini because the situation has changed, with the change in leadership. Any time stock is cheap, you will only buy counter to the recommendation of many leading experts. Dr. Roubini's Jeremiah predictions have a great deal to do with the market being so low, still. If he stated otherwise, this buying opportunity would not be here. The market would be a lot higher.

I respect Dr. Roubini, but I also think that he got a little lucky in predicting a financial collapse at a time when most did not realize just how bad our leadership was.

Another good thing about buying stock when a leading light such as Dr. Roubini is proclaiming us to be in a "suckers' rally, is that he can only change his mind from bearish to bullish. If he did so that would be a huge boost to the market.