“Does Roubini favor nationalization because he has people short through this RGE Monitor outfit? Is that what this is all about?”
James Cramer, May 5th 2009
The Beef between Cramer and Roubini is heating up.
Today’s op-ed piece in the Wall Street Journal by Nouriel Roubini makes the point that “We Can’t Subsidize The Banks Forever“.
No sh#t. I don’t think anyone actually wants to do that, Doctor Doom.
Roubini was early and right on the crisis, but he may be wearing out his welcome and I’m not sure how many more 6 figure speaking engagements are coming his way these days.
He is clearly still in the camp of Bank Nationalization:
Stress tests aside, it is highly likely that some of these large banks will be insolvent, given the various estimates of aggregate losses. The government has got to come up with a plan to deal with these institutions that does not involve a bottomless pit of taxpayer money. This means it will have the unenviable tasks of managing the systemic risk resulting from the failure of these institutions and then managing it in receivership. But it will also mean transferring risk from taxpayers to creditors.
OK, that seems to be a fair point.
But James Cramer, who was recently referred to as a buffoon by Roubini, is interpreting the piece as a dig at Warren Buffett. Cramer commented on the piece this morning on RealMoney Silver:
James Cramer: Today Roubini, my favorite perma-panda, takes on Warren Buffett in a piece entitled “We Can’t Subsidize the Banks Forever,” in the Op-Ed section of the Wall Street Journal. This debate reminds me of the Pope v. Stalin when Stalin responded to the query about the pope being an opponent with “How many divisions does he have.” The simple truth is that the professor can’t stand up to the nation’s bank arbiter and this veiled attack seems like sour grapes as the answer isn’t that we subsidize banks forever, it is that we subsidize them for as long as we have to. Does Roubini favor nationalization because he has people short through this RGE Monitor outfit? Is that what this is all about?
So now Cramer is calling into the question whether or not Roubini is using his pulpit to steer the conversation back into a direction that would be better for the investors in Roubini’s RGE Monitor service?
Them’s fightin’ words where I come from.
I also think it’s cute that Cramer called him a Perma-Panda.
Full Story:Roubini Op-Ed (WSJ)