I really don't know how CNBC allows this guy, with his basic fallacious concepts about the market, to continue preaching on the subject.
"Roubini, at 6,300, says the market is going to crash. Where are we now?"
I can answer that question easily, and I'm not even an educated economist.
The "market" that he is referencing can only be the NYSE or the Dow as those are the only two that are currently in the range he is citing. The NYSE was originally set up to be a 1000 point system and is currently at about 5400, the Dow is only an index, not a market per. se., but is also severely inflated as it began life as a 100 point index.
Either way, it is easy to see that at 6,300 either of these could go lower as the current levels are hugely inflated from the limits by which they were designed to operate within.
My point is that for any economist to declare that a market has "bottomed out" at 6 times its designed peak is fairly absurd. There is a lot of distance to go in order to hit the bottom, and as we continue to witness deflation for the first time in over 50 years, there is a possibility that we might get a lot lower.
About Jim Cramer
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