Introducing "Quote of the Week"

I've decided to introduce a few weekly features to the blog, starting with my "Quote of the Week", which I'll post on the site every Tuesday. Sometimes it will come from a previous blog post, sometimes it will be unrelated; sometimes it will be amusing, sometimes it will be infuriating. Hopefully, you'll find them as interesting as I do. Stay tuned for more weekly features...

This week's QUOTE OF THE WEEK

"Nothing is in a bubble when people want to buy it." -Joseph Balestrino, Federated Investors

CNBC anchor Erin Burnett received a lot of attention for her "you are so rude" outburst, directed at Delta Advisors' Michael Pento in this video:



But my favorite part of the video came after Mr. Pento's dismissal, when Joe Balestrino let loose with an absolute gem (beginning around 4:25 in the video). Balestrino could not be more wrong. If nothing is in a bubble when people want to buy it, then there is no such thing as a bubble. Period.

People bought houses in 2006-2007, when they were most assuredly in a bubble. People bought crude oil when its price exceeded $145 per barrel, before it collapsed by more than 50%. This is how bubbles are created in the first place. What Joe Balestrino is suggesting is that a bubble doesn't exist until it has popped. In a word, wow.

The fact that this type of lunacy qualifies as "expert analysis" is beyond absurd. I would rather stuff my money in a mattress or burn it as fuel than hand it over to someone who can make such a bold-faced ridiculous statement. For his complete ignorance of market reality, Joe Balestrino has earned the distinction of my inaugural "Quote of the Week".

[YouTube]