Bloomberg host Bernie Lo countered Rogers' criticism by saying that his channel avoided most of CNBC's excessive boosterism, and Rogers kind of agreed. When Bloomberg was mentioned in the same breath as CNBC, Bernie Lo made my day by comically retorting, "We're not suckers here." Maybe so. Bloomberg is not such a blatant rah-rah for its audience is, as I've mentioned before, composed more of finance professionals and less of casual investors who piled in during the go-go days of the Clinton era. I was reminded of CNBC's rose-tinted bias just last Friday when the data on durable goods orders was released. These CNBC hosts were yakking about how great the 5.5% reported increase was when it was made up largely of one-time orders by Boeing; net of transportation, the figure was actually -0.2%. Sure enough, the Dow Jones promptly fell 123.60 points, and even Boeing went down $1.29.
Yet, you can't get away from the fact that Bloomberg features a lot of guests nowadays from the homebuilding industry. Whether it's Pulte Homes, Toll Brothers, or Fannie Mae, the song remains the same: the housing market is great, no "bubble" worries here. Their certitude is worrying, and Jim Rogers' advice about commodities should definitely be considered. The "flippers" who try to make a quick buck by buying houses just to sell them again should heed Burt Bacharach's wisdom pronto:
A house is not a home when there's no one there to hold you tight
And no one there you can kiss goodnight
Posted by Emmanuel |