Philip Palumbo and Doug Augenthaler on NFT excess

There are many signs of market excess, and this is one of them. A collection of 101 Bored Ape Yacht Club nonfungible tokens sold for over $24 million this week. 

Unbelievable! Maybe we are just too old to appreciate the value of NFT’s, but we also recall “scarce” $5 beanie babies reselling for thousands of dollars in the late 1990s. Needless to say, they no longer sell at such premiums. The similarity is that the late 1990s was also one of market excess, so excuse us if we are skeptical about the value of the apes. That’s right. $24 million for 101 digital pics of apes. If you’re confused, welcome to the club. 

~ Philip G. Palumbo, Doug Augenthaler, Palumbo Wealth Management, PWM Weekly Observations, September 11, 2021

(As reported in Barron's Market View.)

Dan Ferris on the takeaway from Robinhood frenzy

Robinhood was always a sign of growing excess in the stock market.  It was always a sign that people will believe a good story and think there's easy money in it for them.  And it just falls into the category of things that happen near big market tops. 

~ Dan Ferris, interview of Mark Camillo, Stansberry Investor Hour, 3:30 mark

Popular Mechanics: "Bugatti is building a $33,000 car for kids"

Good news! Bugatti built a car that costs less than a Mustang GT.

Bad news! It's sized for kids, they're only making 500 of them, and they're all sold out.

~ Popular Mechanics, "Bugatti is Building a $33,000 Car for Kids," September 18, 2019



(Quote was cited in the September 25 edition of Almost Daily Grant's under "Sentiment Check.")

The Wall Street Journal on grandiose dreams of WeWork founder Adam Neumann

WeWork has attracted scrutiny over its unusual business model and governance structure, but the company’s strangeness seems to start at the top with CEO and co-founder Adam Neumann, according to a remarkable profile in The Wall Street Journal.

Neumann has expressed interest in becoming Israel’s prime minister and the president of the world, living forever, and becoming the world’s first trillionaire, the Journal reported, citing people familiar with the situation. He is also said to have told employees that the company could one day end world hunger.

~ CNBC, "WeWork's Adam Neumann wants to live forever, be king of the world and the first trillionaire, says report," September 18, 2019

Harold Evans on John Thain's bonus and spending sprees at Merrill Lynch

In the few days in December while he was still in charge, Mr Thain reportedly spent nearly $4bn on staff bonuses. That's peanuts on Wall St. In 2007 Mr Thain himself received $83m.

But a week ago, CNBC's Charles Gasparino, in a detailed scoop on the Daily Beast website revealed that during the time Mr Thain was busy cost-cutting, he spent $1.1m doing up his office - $86,000 for a rug, $35,000 for something called a commode on legs.

Readers bayed for blood, posting comments such as: "Oh how I wish this was Revolutionary France and we peasants could storm the offices…"

~ Harold Evans, "Banker + gangster = bankster," BBC, January 30, 2009

John Jensen on excess

The trouble with life in the fast lane is that you get to the other end in an awful hurry. 

~ John Jensen

Somerset Maugham on moderation and excess

Excess on occasion is exhilarating. It prevents moderation from acquiring the deadening effect of a habit.

~ Somerset Maugham

Roger Altman on the housing crisis: "The natural excess of markets"

Q: Could the housing crisis have been prevented?

A: No. Not anywhere near in its entirety. This was the type of speculative excess we see periodically. We saw it in the dot-com bubble in the late '90s and in the S&L crisis in the late '80s and early '90s. It's the natural excess of markets.

~ Roger Altman, chairman of the boutique investment and private equity firm Evercore Partners (EVR), "Roger Altman On the Pain Ahead and Election 2008," BusinessWeek, December 3, 2007, interview with Maria Bartiromo