Lou Dobbs and His Ilk are Wrong: Why I Bought Stock Friday for the First Time in Years

I'm not an economist, though I did get a "B" in one course at CCNY. I submit, however, that Lou Dobbs, employed on and off at CNN for many years, is an inveterate right-wing naysayer and appears to be no more knowledgeable about the subject than I am.

He and his ilk in the media continue to rant about all the perceived Obama wrongdoing and have already declared the president's administration a failure after less than two months in office. How is this possible? Whatever you may think of the Obama plans for our economic revival, isn't it a bit too early to know whether any of it will work?

However, Dobbs and his conservative media pals have to maintain a rationale for paying them to spout on the airwaves, so they scream and flail about as CNBC's Jim Cramer did not long ago. Or they raise an eyebrow and gaze in the camera condescendingly, which is Lou Dobbs' trademark euphemism when he has nothing valid to say. He actually lambasted Obama for spreading himself thin when he announced new policies for stem cell research and health care. He accused the president of wasting time when Obama, no economist himself -- that's why he hires people in the know -- exercises leadership to effect goals and solutions for myriad problems our nation needs correcting.

People are dying or suffering from illnesses that might be cured or at least alleviated. Or are not receiving adequate care. For them, a fixed economy will do no good if they are dead or live their lives in misery. The president is not and should never be a one-trick pony.

But because the economy is still in shambles, the Republicans shamelessly point to the Obama administration with a doomsday scenario, citing the continuing mountain of job losses piling up as proof positive the Obama policies aren't working.

Hold on just a darned minute. Whether you agree with Obama or not and whether you feel his associates don't know what they're doing, it's just a tad bit early to ascribe blame to him for the enduring problems. If there's no improvement by July, maybe. By next December, certainly. But most people, not those simply concerned with building ratings by fomenting political opposition in an unreasonable time frame, would agree the jury is still out whether the recently passed stimulus package will yield results.

Christ, unemployment checks with the extra fifty bucks only started appearing in mailboxes last week. The help pledged to the mortgage and banking industries clearly hasn't had time to work or fail.

However, it is a fact Obama and his team are trying and have announced plans, which have instilled a level of hope. They're employing strategies to get us out of the economic mire caused by the previous administration's screwed up economic policy and extraordinarily costly, unnecessary war.

The markets are reacting -- perhaps in a short-lived burst of optimism and/or the reality that there are bargains to be had all around. As someone previously burned in the stock market through my own fault and overzealous stockbrokers, I took special note when the nightly newscasters announced blue chip company stocks were selling at rock bottom prices.

I sensed this was a chance to make a killing at little risk to myself, but unfortunately waited a few days too many before opening a brokerage account. I opted to buy on the cheap, choosing Charles Schwab as my investment company, and, raring to go, became anxious when my stock choice, Citigroup, went up forty cents from earlier in the week when it was just over a dollar.

Still, at $1.54 it was only going to cost about fifteen hundred dollars if I acted fast, so I rushed to the Schwab office with a $2,000 check and uncharacteristically got up at 6:15 the next morning to await the opening bell in New York. To my chagrin, the opening price was $1.83 -- up from a close of $1.67 the night before.

I watched the stock go up and down a few pennies, alarmed to hear Citigroup had made a positive announcement. This had nothing to do with my decision to buy, which was based solely on the fact it was so cheap. However, now I had competition and unhappily the stock moved upwards, moving all the way to $1.89. I hesitated. It's got to come down, I thought, and so I waited and it did. However, not to the level of $1.78 recently seen. I waited a bit more as it went up and down a few pennies, and then, because I'm a bit green, I grabbed it at $1.83, fearing it might move over two dollars.

Naturally, the stock fell and then rose. Damn. I could have gotten it for a bit less. I went back to bed and later, to my horror, I learned it had fallen to $1.64 briefly a few hours later until finally closing at $1.78 -- five cents lower than I'd purchased. Oh, well, at least I didn't buy it at the high mark, and it went up eleven cents from the previous day, a gain of 6.5%.

You see I'm in this for the long haul. Not just to make a profit of a few hundred dollars. I'm hopeful the stock will revert to its high of $27 or so a year ago. Or higher perhaps. It may go down today or tomorrow. I'm in no particular hurry, and though I wouldn't want to lose the $1,843 I invested I'm prudent enough that it won't kill me if I lose it all. That said, I don't believe this will happen, because I have faith in this country and can't believe a huge bank like Citigroup will go under. I'll keep you abreast from time to time, or check the listings yourself. Better yet, buy Citigroup and drive the price up!

Michael Russnow's website is www.ramproductionsinternational.com

Comments

[LetMeUnderstandThis]

Lou Dobbs is like a flag which ever way the winds blows.....

[SparkyDash]

A performer...indeed (reminds me of the uncomfortable desperation of young Jerry Lewis). To build a show around the tearing down an individual for no other reason than to get audience feedback, is representative of a sad life. Performers can be quite hollow.

[vernonbc]

Lou Dobbs is the reason they put mute buttons on remote controls.

[kvet]

Lou Dobbs is the reason People like watching Keith O and R Maddow.....lol

[Subversive]

Like all performers, after the initial wave of success has subsided, unless you re-invent yourself, you likely will become only a parody of your former successful incarnation. Sadly, Lou Dobbs has now reached this level recently. I was watching one show where Dobbs was in high dudgeon about Speaker Pelosi's use of military planes. Dobbs mugged for the camera, feigned great outrage (his trademark), and openly worried about the anxiety Pelosi was creating among the military at the base with her "angry" emails about whether or not "her planes" were ready! Does Dobbs actually believe that members of the military were sent into counseling because Pelosi was sending frantic emails to them? Gimme a break!

[johnsopinion]

"Whatever you may think of the Obama plans for our economic revival, isn't it a bit too early to know whether any of it will work?"

Not for the "drive-thru" generation.

Place your order at this window, pull up to the next window and pick it up!

[bayside]

Not all republicans are becoming David Duke republicans..I bet the majority are not..

[Montanagramma]

I was a loyal Lou Dobbs fan a few years back (even arranged my day so I never missed his show). When he began ranting more than reporting, he really got on my nerves. The final straw for me was during the Jeremiah Wright saga. Every night the same thing, culminating with Lou's fill in, Kitty Pilgrim, doing a full hour on the over exposed story. That was it!! The final straw. And, I do mean FINAL!!

[4httr]

I wonder if Lou Dobbs would fault himself for spreading himself too thin by railing about illegal immigration night after night instead of keeping his arched eyebrow fixed on risky and irresponsible investment practices by many of our highest profile companies. Dobbs and Kudlow are two of the most condescending characters who spend most days on their programs fronting for corporate predators.

[Lovepolitics2008]

In the past, I used to have some respect for Lou Dobbs even if I didn't agree with him. But these past two years have been a real eye opener. I don't know if this man is incompetent, delusional, or dishonest, or a mix of the three.

[roshni]

He is a hater.

[LizM]

I think you're right about Lou Dobbs, and here's why.

During the presidential primaries and election campaign he was the part of the media that never missed an opportunity to dismiss and/or denigrate Joe Biden. That's when I knew for sure that Lou Dobbs could not be trusted on any subject.

That's the great thing about those of us who understand who Joe Biden is and what he is all about. We have a built-in 'people barometer' that takes a measure of a person's personal character and integrity and it virtually never lets us down. It is a phenomenal tool to have, particularly in judging the media/blog­osphere/pu­nditocracy­.

[Lovepolitics2008]

I agree with you about Joe. The first time I saw him and heard him speak, I instinctively liked and trusted him. I've done some research on him and I just know that my instincts were right.

[roshni]

I agree with you. Joe Biden is a sincere and good man. He has done more for womens' rights than many on the senate and he is a good father and husband. Those of us who value those qualities in people should boycott Dobbs for his snide comments about Biden.
Dobbs did the same to Michelle Obama and mocked her based on his own innate racism. He is not to be trusted.

[2008CaliforniaFan]

I didn't turn the channel fast enough last week and Lou started of his show about Biden's earmarks in the Omnibus Bill. He had His agenda and wanted to ' get the story out '. He O N L Y told what Biden's earmarks were...? He showed outrage, and pointed out that Biden had about 20 million in the Bill.... OMG !! How outrageous is T H A T...?
However the top GOP leaders had as much as 80 to 90 million in earmarks... or 4X what Biden submitted. why tell the truth when you make up a story though. How CNN allows him to go on the air... I don't know.
And two other CNN anchors, Rick Sanchez & A. Cooper have done stories last week showing that 90% of the drug Cartels G.u_n.s come from the US... But Lou is all for defending the rights of these guys to sell and make a profit.... and in the next breath rails about the dr. ug situation.
Lou.... it is ' Y O U R " friends creating the problem and making it worse.... CNN he has to go.
Your slogan " Keeping Them Honest"... is a hypocritical joke.

[SparkyDash]

I believe Joe Biden is about as honest and sincere at they come, and he actually cares about people...you can see it in his eyes and hear it in his words. Passionate? You bet...that passion makes Joe human as well as fascinating. I've seen him hugging the athletes at the Special Olympics with genuine warmth, and ripping into foolish politicians with no fear. It is all real, and quite remarkable.

I know he is exceptional and an expert in foreign policy matters, and can handle anything Obama throws at him, but I do believe it is as Liz states that makes him a standout: "That's the great thing about those of us who understand who Joe Biden is and what he is all about. We have a built-in 'people barometer' that takes a measure of a person's personal character and integrity and it virtually never lets us down."

I would go to the mat for Joe Biden because I know he would do the same for me.

[Idytme]

You may be right that the market is about to do a nice bear market rally, but it may be just that. Although I don't fault you for going in don't forget to leave with the same gusto. We could see a retracement up to the 9000 level, and then be prepared for another fall, maybe as bad or worse than the one we had since the last time we hit 9000. There is nothing wrong with taking some money you can lose and putting it in the market, just be all over it.