Why is Roubini warning of global financial Ebola (and other random musings)??

Nouriel Roubini is out recently warning us that global financial contagion should not be thought of as impossible.  I think this is a strange time for him to come out with this.  I mean, weren't the unemployment numbers really positive?  And aren't we near all time highs in the stock market?  And Aren't interest rates at historic lows?  What's not to like?  Have confidence and be of good cheer!  (cough cough).

I also think that after a small, supposedly expected few percent of pullback that Buffett took the unusual step of loudly talking about buying the 4% dip.  Really Buffett?  Are we supposed to believe that thing are headed straight up so quickly that every small 4% dip is a buying op?  REALLY?   Maybe we get one more higher high wave up, maybe we don't, but the collapse will begin soon and it will scream like a banshee once it picks up momentum.  The herd is scared, there is no doubt about that.

By the way, Jonathan Lebed is out today with the following email:

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Silver is extremely oversold with a 14-day RSI of less than 12, its lowest in history. Silver is now trading for less than the average silver miner's cost to produce it. I suggest the July 2015 $17 SLV call option, currently priced at $1.31. My last SLV call option pick from 2010 gained by over 1,000%!

Jonathan Lebed

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I have followed this guy for some time and there is no doubt he has a nose for market timing.  He is a pump and dump scam artist for sure but that doesn't mean he is wrong.  In fact, the really great pump and dumpers mix 90% truth with 10% poison.  This is the con man's stock in trade and if you approach it with eyes wide open you can make a bundle from their insight.  This is because the con man must first engender confidence before he can get you to slip the noose around your own neck and step off the financial chair.  For the same reason, life gets better for the lower classes each iteration of the con.  The poor people of today are 1000 time better off than the rabble of the 1600s.  This is because they must be given a slightly better deal each time the con is to be re-started.  We call it "reform" for a reason: it gives the con men the cover needed in order to re-form their criminal cartels.

In any case, I don't know if you can make 1000% off the July 2015 $17 call.  That would imply silver prices north of $28 by then.  But 5x?  Sure.  Lebed is correct, silver is oversold in a serious way.  I prefer to play the options game with JNUG since I can get stopped out for a 3% loss while the ETF takes a 20% dump and I just waltz right back in with about a 10cent spread.  This is a really great way to get short term leverage on metals, much better than options IMO where the spreads can easily be 20%.