Video: Cramer flips out
posted at 9:05 am on August 6, 2007 by Allahpundit
A jolt of energy for you on the first slow Monday of the year’s slowest month. The best bits are about two minutes in and then again near the end.
You think his co-host is a little annoyed?
Blowback
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Wow! can’t believe how many times he used the X word!
boris on August 6, 2007 at 9:14 AM
Cramer
Seems to have lost his money blaming it on the Fed
This is a classic example of by low and sell high is still not sinking in with some people
EricPWJohnson on August 6, 2007 at 9:16 AM
She is almost always annoyed at him in that segment.
jeremiad on August 6, 2007 at 9:16 AM
He seriously needs to cut back on the caffeine.
Tyrs Fury on August 6, 2007 at 9:18 AM
I’m confused. Does he have no idea, Jim?
chrisro on August 6, 2007 at 9:22 AM
I saw this Friday. Cramer was a characature of himself in this clip. It was a good thing he had a hot lady there to soothe him down a bit or he’d have gone through the TV.
He can’t imagine the possibility that he’s wrong. Of course that’s the trait of all good traders. They may lose money, but they are NEVER wrong (according to them). I dream to be a trader some day.
He says we should feel bad for these billion dollar companies that made bad financial moves in issuing bad loans. As though it is Bernanke’s fault that they issued bad loans.
ThackerAgency on August 6, 2007 at 9:25 AM
This isn’t anything unique for Jim, he does it almost every night on Mad Money. It’s just who he is and who he’s always been and it’s not an act.
TheBigOldDog on August 6, 2007 at 9:29 AM
Any body that loses money in the stock market deserves what they get. Just like the idiot that gambles in Vegas. Guys like Cramer make me wanna puke. I like money as much as the next guy, but instead of trading stocks, I make it the old fashion way. Which is by providing goods and services to customers.
TheSitRep on August 6, 2007 at 9:31 AM
Back when I was in Journalism school, professors warned us about not having a personal interest in what we covered, and to never never never become part of the story. I agree with Eric, Cramer is out of bounds on sooooo many levels. Please CNN, a little more news business, and a lot less show business.
Fat chance!
doufree on August 6, 2007 at 9:32 AM
It’s armageddon…dogs and cats living together…mass hysteria!!
HockeyTemper on August 6, 2007 at 9:34 AM
Journalism school? That explains it.
First, it’s CNBC not CNN and second, Cramer is not a journalist he is a commentator/money manager/trader. He’s pretty famous and wealthy and has been for a very long time so nobody who watches him is likely to confuse him with a reporter. Third, this is who he is and has been for decades. What you see has nothing to do with show business for Jim.
TheBigOldDog on August 6, 2007 at 9:38 AM
Is this a joke. Who watches this crap?
tickleddragon on August 6, 2007 at 9:43 AM
Dude the hater-aid is a little thick. Use more water in the mix.
Theworldisnotenough on August 6, 2007 at 10:01 AM
Thebigolddog
Famous rich traders are too busy and have too many ND’s to be speaking out of their hineys to be schlepping for a few hundred thou on CNN
Kramer’s personal wealth is undisclosed usually with TV traders – they once were rich -
EricPWJohnson on August 6, 2007 at 10:05 AM
I said CNN just to watch you go through and correct everyone
Look CNBC, MSNBCFOXEIEIO they are all basically the same once rich traders managing portfolios
Portfolio management is confidential usually has severe penalties for disclosure
EricPWJohnson on August 6, 2007 at 10:08 AM
Cramer is my guy, I love his show. And well if you look at the economy in macro terms we are headed for rough times if the Fed does not do anything. Simple questions:
1. How do you maintain economic growth while not having any inflation? Illegal immigration keeping the real wage down.
2. Why were so many houses built in the first place? Cheap labor combined with subprime loan market.
3. Why did so many people need subprime to get into a home? See#1
The housing bubble is going to sink a large number of communities. If you live in a border state, next year is going to be a cheap property bonanza. Immigration enforcement is going to lead to inflation, we will replace them with Americans that wil make $2 more per hour.
Theworldisnotenough on August 6, 2007 at 10:10 AM
This guy needs to seriously cut back on the caffeine, before he winds up the first contestant on the new upcoming reality show, Celebrity Heart Failure.
pilamaye on August 6, 2007 at 10:12 AM
More advice from a neophyte who has no idea of how the free market works.
Ghostbuster on August 6, 2007 at 10:14 AM
You have no idea what you’re talking about as usual.
Now, why don’t you show us all how smart you are by explaining to us what Jim was talking about in that clip. What’s the problem Jim was addressing and how big is the problem? What does it mean, if anything, for the average American?
TheBigOldDog on August 6, 2007 at 10:19 AM
Its such an act…zzzzzzz.
Bad Candy on August 6, 2007 at 10:20 AM
I’m a bit ashamed of this: I have a BS in Business Management, and I had no clue what he was talking about a third of the time.
Regardless, hilarious.
MadisonConservative on August 6, 2007 at 10:22 AM
Maybe I’m just an evil conservative, but my wife and I moved from Florida to Texas because the housing market was so hot in 04 and 05 when we were looking for our first home. If we wanted to stay in Florida we would have had to to have taken one of those teaser rates. But I new it was a gamble, and that rates were bound to go up. So we moved to Houston, where you could buy a really nice house for 150,000, and we were able to get a fixed rate at prime and have enough for the house we wanted. We moved 1,000 miles away from family so that we wouldn’t be in the position of loosing a house now, so I have little sympathy.
Weight of Glory on August 6, 2007 at 10:27 AM
Must have given financial advice to his clients that went south.
Theworldisnotenough on August 6, 2007 at 10:10 AM
Good points. Having the presence of mind to lock in when interest rates were low, too many, want to be homeowners were overly optimistic; believing that when they had an ARM, rates would go down and they would benefit from lower mortgage payments or higher escrow stores. Elevated mortgage payments that followed rate increases, has shown up in my area, in increases in foreclosures. A glut of new homes, leaves developers scrambling to find buyers and mortgage companies pedalling exotic mortgage arrangements and even allowing buyers that have no down payments, to apply for a seperate second mortgage; normally at a higher interest rate. It’s not an armageddon, but alot of people are being hurt financially, for their decision processes.
captivated_dem on August 6, 2007 at 10:31 AM
It’s not a matter of being sympathetic. You have to consider the macro affects of tens of thousand of people defaulting on their mortgages across the country and large financial institutions failing as a result. More personally, given you just bought a couple of years ago you could even find yourself under water (owing more than it’s worth) on that house you just purchased.
TheBigOldDog on August 6, 2007 at 10:33 AM
No, this is not a joke and anyone who is smart will watch it over and over until they GET IT.
The bond market has been telegraphing trouble for a couple of YEARS now, and chickens coming home to roost in the financials, are just the BEGINNING of the trouble in the housing market.
I hate to sound alarmist, but a fed rate change is a blunt tool and would only forstall the inevitable.
Cramer apparently hasn’t looked outside the NY area lately (shocka) and noticed that the big builders are STILL BUILDING, having bought the dirt, and committed to projects with utilities and roadways, etc., already installed. They can’t stop, and once built, they won’t sell.
This is a GLOBAL housing bubble, not just the USA, and a GLOBAL problem will result.
Not trying to sound fatalistic, but after riding 4 housing boom/bust cycles (none even REMOTELY as dangerous as this one), I’ve seen this movie and know how it ends.
Cramer has too. Hence the panic. He’s not kidding!
Keith_Z on August 6, 2007 at 10:36 AM
I am not that versed in stocks but I know Mortgages and what he says about the Real estate market (not sure if I would say Armageddon) is happening (especially that part about 13million 3yr loans teaser rates on 7mill all going down). I am FL and I don’t know how many people who purchased these new homes 2-4yrs ago are coming in to Refi their loan to avoid the ARM but are being denied. Reason the builders are selling new homes now at or less than what they sold them 3or4yrs ago, hence those people cannot get comps to Refi, cannot sell without loss, and are stuck looking down the barrel of a ARM mortgage that on year 3 is jumping 2-3% yeah that was RATE not points. Your talking hundreds of extra dollars a month.
Tag that with the fact that (at least in my region) we have huge numbers of “2nd homesteads” which are really back door investment properties that were bought eyes wide open with 2-3k dollar mortgage payments and possible rental income of 1100-1500 monthly all with the idea that in 3or4yrs before the ARM kicked in or worse those idiot 1-2.5% teaser options ended they would sell and rake in their appreciation. That appreciation has not materialized and in fact its either non-existent or in some cases depreciated. Oh and did that payment is jumping up even further?
You put that together and you get a ugly senerio, “Armageddon”, I don’t think so but definitely signs of the low side of a cycle a coming.
I also disagree with Cramer that I don’t think a drop in the Rate by the Fed would do much to stem the tide unless its the unlikely drop of a entire point or more. The Fed with their slow quarter bumps over years has been telegraphing this a long long time and the Builders and 2ndary lenders have not responded until very recently. Even if the Fed made it could maybe postpone things and save some but that portion would probably just be offset by the waive of additional people who jump at the same mistake. The market is overdue a correction its been out of hand for too long. Sacrilege for my business I know but it is the truth.
C-Low on August 6, 2007 at 10:42 AM
I’ve seen Mad Money before, and I always thought he acted odd, but I’ve never seen him blow up like that before. I just wish I knew more about trading to actually give an opinion on what he said.
MaelstromX on August 6, 2007 at 10:44 AM
Cramer flips out?
How can ya tell? Yeah, nothing like having someone yelling when they’re standing 2 feet away from ya…
JetBoy on August 6, 2007 at 10:45 AM
Look , I know how the markets of the world work. And I celebrate the free market and know that these markets capitalize the greatest economic engine in the world. But here is the deal. When you invest your money in anything where there is a potential for loss, you need to be prepared to lose it. Most smart money in the market is in long term and unless they are investing in buggy whips or some other dyeing technology they will weather all the storms. But guys like Cramer are just greedy little turds. And he is mad because he don’t like loosing money and / or the game. And his reputation takes a beating. I think it is cool when people loose there shirts when they get wrapped up in a con, and it was there own greed that was there undoing. He He He
TheSitRep on August 6, 2007 at 10:46 AM
Bigolddog
First founding traders of securities firms don’t retire – they are forced out second Barrons has disputed all of Cramers stock tips showing that in 4 out of 5 cases its advantageous to do the OPPOSITE
38% over 15 years is passbook savings in the largest market increase in history at the same time the Magellan fund made over 145% in the same period and Vanguard SP500 index made over 80%
Basically Cramer made nothing when the market went from 1800 to 11,000
Whop tee do
Thats why he is schlepping stock tips on banana companies on a third tier programming channel
EricPWJohnson on August 6, 2007 at 10:48 AM
It’s bad out there. I don’t think Cramer is exaggerating and I am not a Cramer fan. But I am in the mortgage business and have been for over 17 years.
I’ve seen and survived the cyclical downturns through out the years. This time it’s different, a perfect storm if you will.
First off, subprime is dead. I get emails everyday now saying this company is out of business or no longer doing certain types of paper.
Alt A, which sits in between prime and sub prime paper is also dying. Lenders are shying away from alt A in a big way.
That leaves prime paper which only the most credit worthy qualify for. This means there is going to be at least a third less buyers out there to soak up an already bloated real estate inventory. Supply demand says we are going to see a real estate crash that could rival the great depression.
With real estate values plummeting, homeowners who bought in the last few years with little or no down payments will not be able to refi out of escalating adjustable rate mortgages. This will lead to even more defaults and foreclosures which will further pressure the real estate market.
No lender lends if they cannot sell their paper so they can lend yet again. The only mortgage securitizations that are still functioning are the agency players, namely freddiemac and fannie mae. No one on Wall Street is buying subprime paper and alt A paper is close behind.
When homeowners realize that their main source of wealth (home equity) has evaporated, they will pull in their spending and put further pressure on an already stressed economy. The potential for this scenario to feed on itself is scary to say the least.
The economy has been growing artificially in my opinion. Businesses have been racking up record profits on the back of cheap illegal labor and out sourcing. This has perverted and prolonged the boom part of the cycle. When the balloon pops, it will be exaggerated on the downside as it was on the upside.
Add to that the artificial upward pressure on real estate prices caused by 20 million illegal aliens vying for rents and home ownership and the problem has been exacerbated that much more.
No I’m with Cramer on his dire assessment. And the fed seems oblivious to the whole debacle and what it can lead to.
voiceofreason on August 6, 2007 at 10:52 AM
MaelstromX, Cramer’s actual results are very average. Right down the middle.
Nothing to write home about, but then, what can you expect after 5-second analysis of hundreds of stocks. If you click the link above, you’ll see he ties “Leonard the Wonder Monkey.”
And then of course there’s this, but much better, this.
He’s funny as hell and if you gave him a million to manage for himself, he’d probably do good with it… because I assume he’d focus a bit and not try to analyze 8,000 stocks.
Christoph on August 6, 2007 at 10:55 AM
Yup, fully aware of that. There is always risk when investing in anything, including a home. Renting, however, was no linger an option. We just had a kid and a two bedroom apt. in Orlando was running 1100 a month. My comments of sympathy were directed at Cramer’s statement that we are building homes in Iraq, while people are loosing homes here in America. I know of many people who took interest only loans, bought half million dollar homes with the idea that they would sell in a few years, make a killing, and buy a permenant home. Problem is, that is what everyone was doing. When the 5 year ARM was up the market was flooded with people trying to sell, and the buyers just dryed up.
Weight of Glory on August 6, 2007 at 10:57 AM
voice of reason
I agree with everything you say but you don’t have to be a Havard MBA to figure out that giving people 200,000 dollar mortages on 30,000 dollars a year income was a wise thing
Cramer pushed stock tips on builders, refinancers, constantly saying that the Fed must protect the homebuilding business and then was feuding with those who felt that seeing a home depot or a Loews or a new Subdivision going up every 1000 yards across America was maybe not a good thing
Cheap credit has always, always created castastrophy from forcing people with cash saving to have to invest it in more volitale ventures to lending money to people who can’t afford it
Face it, not everyone can be a homeowner
EricPWJohnson on August 6, 2007 at 10:58 AM
Can you read? Can you tell me what $10,000 is worth when it is compounded at 24% for 15 years? If you know a bank that will do that for me, please give me the name and number.
TheBigOldDog on August 6, 2007 at 11:04 AM
You have no idea what you are talking about. I hate his act, hate his show, but the man was near-legendary in the investment community on the basis of his SUCCESS as a hedge fund manager. He returned 24% to his investors PER YEAR over a 15 year period (on average). That means $100k invested would grow to $2.5 Million in 15 years. Give me a break, the man is a legend and you clearly know nothing about him. His show sucks, I admit, but don’t knock his investing prowess, that’s just insane.
RW Wacko on August 6, 2007 at 11:07 AM
Yes, and you mortgage lenders created the credit problem in the first place by loaning money in irresponsible and creative ways to people who had neither the means nor creditworthiness to repay the amounts they were loaned in the first place. They created the bubble and the rest of us will end up paying for their greediness and irresponsibility, as always. They created the bubble, so live with it. I have no sympathy at all for anyone in the mortgage business. You reap what you sow. Given all the warnings made to people about variable rate mortgages, I also have absolutely no sympathy for anyone that signed one of those mortgages.
Laddy on August 6, 2007 at 11:15 AM
RWWacko
Umm no he didnt several years he had huge losses his total portfolio return was less than passbook savings
If that were true he would be the bestest bestest bessie god and a multi billionaire
If he had 5 million it would have flipped 5 times in 15 years and to date would have flipped 9 times so his personal wealth would be a minimum 2.5 billion dollars or by far the richest man in the world cause at one time he had 25 million
25 million flipped 9 times is over 12 billion cash
Kramer isn’t in the top 1000 in income so I strongly DOUBT he’s been returning 25% per year.
EricPWJohnson on August 6, 2007 at 11:22 AM
Cramer is host of CNBC’s Mad Money and co-founder of TheStreet.com. According to the January 27, 2006 episode of High Net Worth on CNBC, Cramer has accumulated a net worth of over $100 million. He currently resides in Summit, New Jersey.
http://en.wikipedia.org/wiki/Jim_Cramer
TheBigOldDog on August 6, 2007 at 11:30 AM
C-Low pretty much has it right, as well as the other educated HotAir folks. The real estate market is in for a bad time. House values are going to drop, and lenders are going to stop lending to credit risks.
Many people see this, so they’re trying to unload their house and make their money while they can. People who don’t own (like myself) are going to forego buying a house because the prices are going to plummet, so might as well buy a house when it’s far cheaper than it is now.
But as for economic depression/armageddon? Nope, sorry. The housing market is going to suck, and certainly many people are going to have to change the way they spend money, but it’s going to fundamentally affect the economy. We’ll see a drop in consumer spending, but it will rebound once people adjust to the market conditions.
Nethicus on August 6, 2007 at 11:31 AM
Very good points. I should mention that I’ve seen Cramer for years….mid-90′s when thestreet.com got started…..and he’s never been bearish, even at the depths of the dot com bubble. This is the first time I’ve seen him panicked (but then I don’t like all the more-recent Mad Money show screaming, so I don’t watch it much.
The “Perfect Storm” comment above was also very prescient. Another strong factor in housing decline might occur when all the illegal immigrants can’t find work in the building and service sectors that are currently supported by cheap labor, and 20 million people disappear back to Mexico!
This would really knock the rental market back on it’s heels , and the chain reaction of the businesses connected to building could become catastrophic. (everything from quarries, concrete complanies, lumberyards to restaurants and all the builders and Dow 30 companies stuck in the middle)
Most people don’t realize that both the bond market and the real estate market are much bigger than the stock market, and real estate is a commodity, just like pork bellies, only far less liquid.
This is serious stuff, and Cramer should be credited for honestly ranting about it, even though it’s too late to do much about it.
Keith_Z on August 6, 2007 at 11:35 AM
I’ve seen some interesting comments on the finance and real estate industries in this thread; the arguments for hard times ahead in those industries are somewhat persuasive. However, I haven’t found, so far in my reading, any mention of the effects of greater affordability on the decisions of buyers and lenders. I’ll grant that it seems likely that prices will fall. It seems declining prices will tend to bring in buyers who have been on the sidelines, either because they can’t afford the house note or because they foresaw that prices will fall and they don’t want to find themselves paying a note on an asset that’s bleeding equity.
It seems declining prices must also change lenders’ decisions about the creditworthiness of borrowers. I admit I don’t know the details as to how they make their decisions; however, it seems reasonable that tens of thousands of borrowers whom lenders find unworthy of credit in the amount x will be found worthy of credit in the amount .75x.
I grant that a buyers’ market in real estate seems likely to hurt many people on the selling side. I grant that most homeowners who find their line of credit diminished will reduce their spending and that their reduced spending will harm economic growth. But a buyers’ market in real estate doesn’t seem altogether harmful to buyers! Nor does it seem altogether harmful to their country.
Does anyone consider himself to have an informed opinion as to the ways declining real estate prices will be advantageous to the Americans? I’d like to read it.
Face it; everyone can be a homeowner at some price. :-)
Kralizec on August 6, 2007 at 11:46 AM
I came to the sad conclusion, in wanting to upgrade and buy a beautiful piece of property recently, that even if I had the resources and credit worthiness for a $XXX,XXX property, that didn’t translate into my ability to keep it. Great piece of property though.
captivated_dem on August 6, 2007 at 11:47 AM
Just as in the stock market, declining real estate prices represent vaporized wealth. Value is based upon perception, and when perception falls, the asset is simply worth less. (Unless you’re short the stock, index, or real estate trading instrument, in which case you profit from the decline.)
If you have cash, you can buy foreclosures, but it’s a sad business when you see the people involved, which is very common.
As we used to joke during the dot com bubble while trying to catch the bottom of all the “falling knives”……..”I think I see a trading opportunity when ABCD-Nasdaq reaches ZERO.”
Imo, it’s going to be YEARS before the bottom is formed on the REI bubble.
Keith_Z on August 6, 2007 at 11:57 AM
Kralizec,
I’m not so much an informed opinion, but if one has a good credit rating (or substantial cash reserves), and one does not have to sell one’s house in order to buy another, then there will be a great supply of homes to chose from for the next several years, and there’ll be no bidding up the prices among multiple buyers as has happened in the past. Still, if interest rates rise as some have forecast, even a well-positioned buyer will have to settle for less in a home. My concern is that interest rate increases will nullify any decrease in home prices.
shuzilla on August 6, 2007 at 12:09 PM
BigoldDog
Look I know we sparred and I really do always appreciate your bringing balance to discussions
But Listen to me and my rationale
Cramer is worth 100 million, since he retired he could have invested that himself at his suppossed returns and been worth over a Billion dollars today,
Actually he would be making about one million dollars a trading day right now or more so why would he waste on minute going on a third tier television program that probably pays him a hundredth or two hundreth of his supposed investment income
EricPWJohnson on August 6, 2007 at 12:12 PM
It seems to me that the REAL story here is that Jim knows that the Fox Business Network + the Wall Street Journal are coming and Roger Ailes has marked that operation for death. Look for much, much more of this. Look for Olberman to get even crazier. Look for the NYT to continue doing things like cutting their page size to save money as they just did. The media wars are heating up.
D0WNT0WN on August 6, 2007 at 12:14 PM
A lot of people. Cramer is usually spot-on accurate. You could learn a lot from listening to him.
The sub-prime market has the potential to do some real damage to the economy. The fed can lower rates which will help significantly, but that will just cause the value of the dollar to plummet even further. It is a serious conundrum.
The sub-prime market became a problem because a) people wanted more house than they could afford and at the lower “teaser rates” they were able to buy that home. b) their credit was poor, a conventional loan was too pricey, so ARM was the way to go. c) they didn’t read the fine print on their loans. d) the value of their homes has actually decreased in some areas, or remained flat. e) they will not be able to refinance their loans at a rate at which they can afford and foreclosures will be inevitable. f) there are actual unethical lenders who didn’t explain the situation to first time buyers properly.
Cramer’s point is that the fed can bail out this situation – but it will come at a steep price. He is right to be panicky.
pullingmyhairout on August 6, 2007 at 12:14 PM
American Home Mortgage Files Chapter 11
TheBigOldDog on August 6, 2007 at 12:16 PM
With inflation so low it makes no sense to keep the prime rate so high. The Fed needs to cut the rate (yes, even as much as a full point or more) and that would solve a lot of this problem. Those of you expecting 20million illegals to be shipped off to Mexico causing problems with the rental market are crazy. There is no political will to get that done. It is simply not going to happen.
Patrick H on August 6, 2007 at 12:24 PM
I bet Cramer is so much fun at home!
Rightwingsparkle on August 6, 2007 at 12:29 PM
Darn, fooled by the headline.
I thought he went on an “N” word rant again.
Brat on August 6, 2007 at 12:32 PM
captivated_dem on August 6, 2007 at 12:37 PM
Crashing credit market, delayed effect of last fall’s inverted yield curve, and traditional down months of Aug. and Sept. for the market. Lovely.
Lazarus on August 6, 2007 at 12:44 PM
can you say… manipulating the market with the media?
Kaptain Amerika on August 6, 2007 at 12:53 PM
Slightly off topic, but why is she wearing a giraffe print?
SouthernGent on August 6, 2007 at 12:55 PM
Question for those in the know:
If there is truth in the stated credit crisis, in that finding money to borrow is getting harder, and some huge mergers have gone down for lack of finding cash to borrow, then won’t the market dictate higher interest rates, which is to say a greater cost for borrowing money that is getting ever scarcer? If so, how many points can the Fed really lower the interest rates when economic laws are in the process of raising them?
shuzilla on August 6, 2007 at 12:56 PM
Jim Cramer is an annoying, name-dropping pathetic little gnome. Capitalism is a profit and loss system; putzes like Cramer do their best to make viewers forget the second half of that aphorism. The creative destruction of capitalism that Joseph Schumpeter described applies to everyone, including Wall St. honchos and Harvard MBAs. People like Cramer yap about the “moral hazard” of the government bailing people out of their foolish decisions, until it’s their ox getting gored. Boo-hoo. Suck it up, little man.
Travis Bickle on August 6, 2007 at 1:00 PM
Cramer is a big Democrat donor
Win Win Win on August 6, 2007 at 1:16 PM
Can’t you say that for like, every single one of his episodes?
asc85 on August 6, 2007 at 1:16 PM
He reminds me of stock trader, Marvin, from the movie Wall Street played by John C McGinley.
jihadwatcher on August 6, 2007 at 1:17 PM
Maybe, but he has said in the past that Edwards would be the WORST possible choice for president, followed by Clinton the Second – mainly due to their tax policies (which are anti-growth). He said Romney, from a strict business sense, would be the best for a growth economy.
pullingmyhairout on August 6, 2007 at 1:38 PM
He’s too emotional. I used to watch tis guy, but stopped cause his focus wasn’t diversified enough.
Kini on August 6, 2007 at 1:39 PM
I need aspirin now.
Connie on August 6, 2007 at 1:39 PM
That’s funny!!
Hehehe!!
Mcguyver on August 6, 2007 at 1:39 PM
That’s better!
If someone who can afford a Toyota but buys a Cadillac (and can’t afford) and it gets repossessed, I feel no pity.
I see no difference here, people should have settled for smaller homes with smaller pricetags. Too bad, so sad.
And if the gov’t actually DID ship the 20 millions illegals out of the country, what would that open up, 1 million apartments nationwide, at the most?!?
omnipotent on August 6, 2007 at 1:44 PM
I repeat. Not…going…to…happen. You are dreaming and your smile is a facade. While the Dem’s are in control they will settle for no changes over any bill that will force them out. When they are in the minority they’ll be able to frustrate any Republican move, just as the Republicans frustrate theirs. All we are doing is driving Hispanics into the arms of the Dems. We’re still the stupid party.
Patrick H on August 6, 2007 at 1:54 PM
Leave Cramer alone – he’s my financial advisor.
Sincerely,
Howard Dean
thirteen28 on August 6, 2007 at 2:36 PM
Hmmmmm….Dump the Fed.
Rothbard was right.
Tim Burton on August 6, 2007 at 3:01 PM
LOL….Cramer’s “explanation” compares the current credit crunch with……wait for it…..the 1929 DEPRESSION!
Not kidding…listen for yourself….hard to listen to, though, with the crap video player.
Stop Trading? ..hey Jim……STOP TALKING!!!…….lol
Keith_Z on August 6, 2007 at 3:03 PM
Giraffe is the new white.
Brat on August 6, 2007 at 3:11 PM
Erin Burnett is such a pro.
Alex K on August 6, 2007 at 3:23 PM
This has been said to death but I’ll add to the chorus:
Cramer is no more ‘flipping out’ than he does on a regular basis. At the end of the day, his show is nothing more than a sounding point to increase the profitability of his clients. From my year of watching him, he’s extremely fair-weather when it comes to investments and since he’s an admitted manipulator, his advice certainly isn’t looking out for you.
NeoConNews on August 6, 2007 at 3:36 PM
For anyone who thinks Cramer has anything of any importance to say I suggest A Random Walk Down Wall Street by Burton G. Malkiel.
Cramer’s screeching approach to being a commentator is what is wrong with so many commentators like Sean Hannity and others.
thuja on August 6, 2007 at 4:38 PM
for those of you that disagree with Cramer…let’s have some facts! You have none! He’s right on! The Fed has been a disaster with interest rates and our President has been incompetent with this along with just about everything else in his administration. The ducks are coming home to roost and those of you that can’t bring yourself to say anything bad about this administration can’t take it!
sabbott on August 6, 2007 at 5:23 PM
So the economy is crap because Cramer made some bad bets that didn’t pay out?
The Stock Market is not the Economy, the Stock Market is not the Economy.
Neo on August 6, 2007 at 5:56 PM
Ok. I usually stay away from business/money threads because I admit I am not that knowledgeable about the market. However with this being said I will speak from the experience of being a homeowner. I shopped around for years before I finally bought and I would have to say that here in California the real estate market is bad. My 1000 sf 2 bedroom 2 bath condo was purchased for a little under $400k. It was pretty much all we could afford. Out here I see homes being built everywhere. What I don’t understand is why homes are being built when the housing market is slowing down? Are not the banks that finance home mortgages the same ones financing the builders? Why would banks finance home construction and then make it hard for builders to sell the homes by making mortgages hard to obtain? That makes no sense to me whatsoever.
calirighty on August 6, 2007 at 7:02 PM
Pwnd!
For the same reason he did his radio show. It’s called sharing the wealth, giving back, helping the lil guy out.
- The Cat
MirCat on August 6, 2007 at 7:33 PM
These banks have been making billions for decades now. To lose a few back in a free market is a lesson they will have to learn to live with. They made a ton of loans to people who were clueless about the true future cost of their loans and now they are losing their homes. Most of these “homeowners” were only paying the interest on those 3yr ARMs anyway. So they basically lived above their means in a nice house on the cheap. It’s like giving back a $300 a month Mercedes lease beacuse you can’t afford the true $600 a month payment to actually own it. The banks were too stupid and greedy by giving these loans out to people they knew could not afford the actual payments once the ARM ran out. Mortgage rates are still dirt cheap when compared historically. Cramers rant to the Fed to lower rates was just a stunt to try and save his buds in the banking industry. He knows the rates are just fine where they’re at.
roninacreage on August 6, 2007 at 7:55 PM
Bring on the FOX Business channel. This tool bores me.
thedecider on August 6, 2007 at 8:47 PM
I don’t know much about the stock market but I do know that they need to keep Cramer away from high windows till the meds take hold. Or not?
Buzzy on August 6, 2007 at 9:00 PM
Doesn’t that guy live in a van down by the river?
Mark V. on August 6, 2007 at 9:31 PM
“We go to the lovely Erin Burnett for an interview with Killer Cramer, one of the participants in Wrestlemania.”
“Thanks, Shelduck. Killer Kramer, tell us how you feel about your upcoming match with Bruiser Bernanke?”
“Erin, I’ll tell you what. I’M GOING TO PICK UP THAT PIECE OF PUKE BERNANKE! THEN I’M GOING TO THROW HIM OUT OF THE RING! THEN I’M GOING TO PICK HIM UP AND THROW HIM BACK INTO THE RING! THEN HE’S GOING TO FEEL THE CRIPPLING FORCE OF MY PRODIGIOUS PILEDRIVER! THEN I’M GOING TO PIN HIM AND THE REFEREE IS GOING TO COUNT ONE, TWO, THREE, AND I’LL BE THE INTERCONTINENTAL WALL STREET CHAMPION! HOY–OH!
radjah shelduck on August 6, 2007 at 10:26 PM
You know, what kind of sorry hotair.com member would I be if I didn’t link to the best Cramer-Erin Burnett moment?
http://www.youtube.com/watch?v=bTb7R4LdOv8
radjah shelduck on August 6, 2007 at 10:29 PM
Wow,
the responses on this thread amaze me. If I didn’t know any better I would say it was KOS. Soak it to the rich.
Does no one understand what is going on in the market right now? We have the possibility of 7 million people losing their homes next year. We have the possibility of the credit world drying up. We have the possibility of ALL housing prices going down in vaule something that has not happened since the GREAT DEPRESSION. We have the possibility of a Savings and Loans type of problem with the NATIONS banks. The FED is in a corner right now. If they cut rates the dollar sinks causing a run on the dollar causing WORLD wide economic choas. If the fed raises rates the entire US housing and credit markets nosedive. And we have a massive economic problem in our country and the world. If the FED keeps rates the same we have a lot of pain over a long time for average American as millions lose their homes or see their 401k’s, ira’s pensions nosedive. This is not a “rich” problem this is an american problem. cramer is trying to get the FED to give the entire system a breathing room to let the market digest the problem.
unseen on August 6, 2007 at 10:31 PM
Travis Bickle on August 6, 2007 at 1:00 PM
If you think the only people being impacted by this is Wall Street you are in a different world. Everyone that has an IRa, 401k, mutal funds or a pension is being hurt in this. Everyone that uses dollars in everyday transactions is being hurt by this. Every country that exports to this country has the possibility of being hurt by this. Pretty much everyone that owns a home in certain parts of the country are being impacted by this.
The Fed raised rates to fast and too long. They did this to try and save the dollar and the net inflow of world currency into this country to fund our nation’s debt. What happens when the world due to the sinking dollar no longer will fund our debt?
The Fed is stuck due to our government’s budget failures over the last 40 years. Instead of cutting spending and paying off debt they added to the debt. The bill will come due.
unseen on August 6, 2007 at 10:46 PM
TheSitRep on August 6, 2007 at 9:31 AM
So you have no 401k, pension, or IRA? You do not own a home either right? You own no bonds, cd’s, mutal funds or T-bills? You get you paychecks in euros also right?
ONLY if all the above is true will you not be impacted by what is occurring on wall Street. If you do have any of the above I guess you too deserve what you get by gambling in the USA economic market. You social security funds are also being impacted by that funny Wall street gambling house.
unseen on August 6, 2007 at 10:53 PM
Mircat
Seeing how yet again the market proving Cramer completely wrong by turning around and screaming just as loudly upward
Also his fortune was a payout so he would not damage the funds he was managing anymore – it did not come from personal investment but salary and bonus’
Cramer is a great salesmen and attracted alot of investors
EricPWJohnson on August 6, 2007 at 11:14 PM
EricPWJohnson on August 6, 2007 at 11:14 PM
Big up days in a market are a sign of a bear market and big down days in a market are a sign of a bull market. Big up days and big down days right after each other are a sign of a undecided market the FED meeting tommorrow could bring the market down 400 points as well as up 400 points without blinking.
the rally today was due to stocks that have been beating up bounceing off their lows. This does not inspire confidence. The short covering going on towards the end of the day helped the rally sustain itself. A rally led by short covering does not inpire confidence either. Only if another rally day on high volume by market leading stocks occures before another selloff day will the shortterm problem be dealt with. Smart traders are waiting for the Fed meeting and if the news is bad look for the shorts to come out and the market to tank on high volume. If it is good the buyers will return and drive the stocks to new highs in a short time while the dollar tanks.
unseen on August 6, 2007 at 11:34 PM
You neglected to factor in the building-lag time. A lot of building projects get financed and started when the market is warming up, good, or already hot. From then it may be 3-10 years before the actual building project is actually completed. Plenty of time to have the market crash (and recover) while they’re in the middle of construction. See “Miami Condo” situation. This is especially true when the majority of the market is based on real estate speculators. However, if you’re in a market area with a lot of natural growth, you can still move units. It may just take awhile longer.
JollyRoger on August 7, 2007 at 12:36 AM
Unseen
No one really knows – thats the point isnt it – if I knew what the market was going to do Michelle and Allah would be working for me because I would have all the money in the world
Insert Dr Evil laugh here
EricPWJohnson on August 7, 2007 at 2:17 AM
We paid off the mortgage on our little house last fall,but we wanted to sell in the spring and buy one closer to the kids.My husband never trusted the market and has his 401k and IRA in money markets-never made much,but its safe–or is it? He retires in the spring.
What to do now?
lizzee on August 7, 2007 at 9:04 AM
lizzee on August 7, 2007 at 9:04 AM
Money markets risk include the lost vaule of the dollar. An addtional risk for money markets is inflation.
unseen on August 7, 2007 at 9:11 AM
EricPWJohnson on August 7, 2007 at 2:17 AM
While no one knows what the markets are going to do from day to day since it is dependent on news for its daily actions. Smart traders and investors can read the trends over the intermediate and long term and invest/trade accordingly. The long term trend for the dollar is down. The long term trend for the dow/American economy has been up. Those that have followed those trends are today very wealthy.
unseen on August 7, 2007 at 9:15 AM
Unseen, we don’t know the future, but what’s been discussed as “probable” in this thread, has in fact, already happened.
I can’t find the chart that I was going to link here, but take a look at this chart page for a real eyeopener.
The chart I was TRYING to find, was a chart of Real Estate prices, versus the DOW 30. In REAL DOLLARS terms, the price of real estate HAS ACTUALLY GONE DOWN in the past few years, versus the Dow 30 rise/weakness of the US Dollar against gold. (the traditional currency standard)
People who have taken equity loans out on their homes are not losing money now….they just didn’t realize that their “profit” never really existed in real money terms.
IOW, you don’t have to predict the future. You’re standing in it!
Keith_Z on August 7, 2007 at 9:44 AM
Keith_Z on August 7, 2007 at 9:44 AM
Yes the trend is your friend. goes back to newtons law. since markets are determined by external events and human activity. emotion ply short term but it is human activity that control the long term trends and that activity can be tracked and used to increase wealth.
unseen on August 7, 2007 at 11:03 AM
At the moment, if you figure in inflation and taxes, money markets are just about breaking even in terms of maintaining purchasing power. A conservative investment portfolio consisting of at least 60-80% in varied bonds, and 20-40% in diversified stock funds will average 7-8% annually over the longer term.
He might want to consider a Variable Annuity.* The good ones let you invest in the market, but with an income or withdrawal guarantee. AXA Equitable is my favorite, and Pacific Life and John Hancock are also very good.
*Note: there are quite a lot of bad ones out there, which have given the entire industry a bad name. The internal costs are slightly higher, which is what pays for the guarantee part.
JollyRoger on August 7, 2007 at 9:37 PM
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