Jim Chanos, poster boy for the short-selling community, argues that we've got liquidity problems because people aren't being rational. Irrationality seems like it's a double-edged sword for Chanos and other short-sellers; they count on people "not getting it" to provide them with trading opportunities.
You can read the NYT article with Chanos' comments here.
1 comments:
People may be too skittish to play the part of the suckers Wall Street needs right about now. There have been a lot of comments in the MSM about the bailout being good for Wall Street, and what’s good for Wall Street is good for “Main Street.” This bailout is basically something that was forced on an unwilling public. I think a lot of people have awoken to the fact that they neither understand the current financial crisis nor do they trust the people who have forced the bailout on them, so do not expect them to invest in the stock market anytime soon. However, their greed will return. It always has. People have short memories. The lesson we should have learned after so many Enrons, and Gordon Gekkos is that unrestrained, unregulated greed is bad.
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