Can You Afford NOT to Watch "Mad Money"?

The Fed has Our Backs? That was so last week. Two down days in the market and it's Panic! At the Disco.

Scratch that, I mean Panic! at Booya Central

Hurry. Hurry with the rate cuts. Hurry with the stimulus package. Hurry with the bond insurer bailout. Hurry with the write-offs. Hurry with the Fannie Mae limits. Hurry with something, anything, because things are still going down and they are going down with increasing speed.

.....It is all so obvious that everything has to be hurried. It doesn't take Toll saying there is little light at the end of the tunnel this morning or Whirlpool saying this is the worst market in two decades, but that's the feedback we are getting.

Intra-meeting rate cut? We need one yesterday.

I know that we will get them but each day that nothing is resolved is another day that something goes bad. The rate cuts have yet to impact the economy other than some refinancing by people who have bad resets from 2 and 28s from 2006.

.....Everything is being dragged out in order to see if we get housing appreciation or stabilization and that's not possible yet, as Toll and Pulte and Centex have told us.

It is more than ever a housing issue not because of earnings but because the spigot of loans is getting shut off every day despite the price of interest.

Funny, wasn't all that long ago the same guy had this to say.

Banks, Homebuilders Could Zoom on the Next Cut
01/31/2008 2:01 PM


Banks and home shortages, these are going to be the two big stories of 2008.

Because we have taken out so much mortgage capacity and because the homebuilders have basically stopped building -- they are building one-quarter of the homes they did in 2006 -- we are going to run out this year.

That's right. The people who still own homes who bought then in 2005-2006 are hunkering down, they are spending less, going out less and not leaving their homes much so they can refinance and pay down debt and keep their homes. They are not going to be flooding the market with supply.

A couple things to beware of in Volde-speak. The word "could" and a rally prediction based on some sort of shortage. "Could" lets you turn it into a prediction if it's correct, and an out if it's incorrect.

And shortage we see any time he loves something. I have seen "Gold stock" shortages, oil stock shortages, even just plain old stock shortage. And now we have a housing shortage. Or we had a housing shortage, apparently it has been relieved over the past week and how we have an overhang again.

So time for the Fed to cut again, it has been a whole week since the last one.

Rev. Shark summed up the general situation here yesterday.

If You Change Your Mind, Say So
2/5/2008 3:09 PM EST

If you are going to be successful in the market, you have to be ready to change your mind as conditions change. No investors can be faulted for adjusting their approach in a volatile market. However, what is extremely unfair to readers is when we fail to acknowledge that we are changing our mind.

Last week we had some people so bullish they could hardly contain themselves. Today we are told that we should be selling any strength. There is nothing wrong with that sort of shift, but it really undermines the confidence of readers when we simply ignore the fact that we have made a very dramatic change in our market opinions. If is very important that we make it clear that we are making a shift instead of pretending like we are being consistent.

That more than anything else causes great frustration with the opinions that are offered.

Oh, and that call to sell strength? Easier to say yesterday when we had no strength. Guess what the advice is when we do actually lift.

Wachovia (WB), again, is this market. Think about the stories today about Wachovia and theft. They read horribly. They read like you can expect eons more negative stories after this. And what did the stock do? It went higher.

.....This WB is the tell that says we are going to go back up again after this selloff and that you have to start picking at beaten-up financials, with WB being the position worth starting here.