Cramer VS NOBEL

Yesterday Mr. Mad money spent 5 minutes blasting the Nobel laureates such as Paul Krugman and other PHDs to stop fear mongering. To stop spreading fear in the people about weak economy. He feels all these PHDs should should shut up and listen to what he has to say. What he says is really is a bull byproduct than the bull rally he keeps talking about. He is predicting housing recovery by 30-Jun and that US recovery will be V shaped.

30-Jun is just about 6 weeks away. We'll see. The April housing report though does not seem very rosy.

Nano Bookings ~200,000

This article in Business Standard confirms that Nano is not as great a success as people had expected. Some analysts expected more than a million bookings. But this is not to be. A Car is not just a way of commuting. Its also a social expression, Status Symbol and small cars are going out of fashion (read affordability going up is pushing out small cars).

About a year ago, I had expressed my skepticism about Nano's success. India is not as poor as Ratan Tata would have you believe. With second hand cars market booming and all kinds of cars available on EMI almost immediately, why would someone want to wait a year for a car?

To measure the true success we need to wait till people start driving the first cars rolling out of the production lines. If these cars face any problems that get published in the media and catch public fancy, we may see cancellations of existing bookings. I say we give it another year and see how it goes.