Video: And now, some important financial advice from Jim Cramer
posted at 11:35 am on March 17, 2008 by Allahpundit
From last Tuesday night. He does mention a takeover, doesn’t he? And so it came to pass this morning — at one-fifteenth the price of the shares on Friday afternoon.
In Cramer’s defense, he was distracted.
Blowback
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The thing about Cramer is that he’s a moron.
Sydney Carton on March 17, 2008 at 11:36 AM
Inconceivable! He sounds like the Sicilian on that Today Show clip.
warrenmr on March 17, 2008 at 11:38 AM
All is not gold that spitzers…………
Shy Guy on March 17, 2008 at 11:39 AM
I no longer feel guilty for not wasting time on his show.
I’ll just get my financial advice from those nice people who send me faxes. They are always right.
NoDonkey on March 17, 2008 at 11:40 AM
Ed already posted the same video here:
http://hotair.com/archives/2008/03/17/bear-on-the-cheap-jp-morgan-rescues-the-market/
Illyahkuryahkin on March 17, 2008 at 11:41 AM
Boooyaaaahhhhh!
ninjapirate on March 17, 2008 at 11:42 AM
One thing that I saw from Instapundit over the weekend: you can’t stimulate the economy when the dollar is in free-fall. Stimulating the economy doesn’t work when the currency that values everything else is worthless. Right now, the dollar is in free-fall. The fed is lending more and more money to banks, making the dollar even more cheap. Eventually, that’s going to mean that all the money people saved up isn’t worth squat.
That’s why the price of milk, eggs, meat, gas, and all other commodities are rising. The dollar is worth so little that they’re charging more for the same product.
The Fed needs to protect the dollar first before it can go ahead and try to save banks that made bad investments. There are a myriad number of ways to do it, but one thing to do would be to stop guaranteeing the bad investments and bad loans that those banks made.
Sydney Carton on March 17, 2008 at 11:42 AM
Announcer: And now, another episode of.. “Samurai Stockbroker”.
benrand on March 17, 2008 at 11:42 AM
I bet he cringes every time he has to rewatch this clip.
Roebuck on March 17, 2008 at 11:42 AM
Yeah, and his idiotic ranting calls for lower interest rates from the fed chairman are going to cause inflation to skyrocket.
Brace yourselves folks, we are heading toward the Jimmie Carter financial days again. Be prepared for double digit interest rates in the next 5 years because of inflation.
ThackerAgency on March 17, 2008 at 11:42 AM
Yes, Cramer is mad. But I’ve made some nice money listening to some of his advice (TIE), lost a little too (SHLD). All in all, he hasn’t been bad for me. Hey- he’s not running for Pres. He can cry for whoever he wants, and worship satan. It’s a free country.
JiangxiDad on March 17, 2008 at 11:42 AM
Geez, Ray Charles could have seen the writing on the wall (even in his current state). Where’s my TV show?
moxie_neanderthal on March 17, 2008 at 11:43 AM
Well said Sydney.
The falling dollar makes our federal deficit worth less too. So a trillion dollar deficit with a strong dollar is more than a trillion dollar deficit with a weak dollar.
The problem with what the fed is doing now is that inflation is going to go through the roof. Banks that participated in bad practices need to fail. We need more Bear Stearns things . . . $2 / share that was $150 / share 2 years ago.
This is where the money is going to come from during this financial crisis. It is going to come from the stock holders and prices that have been over inflated over the past 15 years. We don’t need federal dollars to bail out the industry. . . we just need to capital markets to work its way out.
ThackerAgency on March 17, 2008 at 11:47 AM
Well if you listen to Cramer you deserve to lose your money. He’s always a buy, buy, buy personality. When do you hear him tell you so sell something, almost never. If you read Blogleheads you can see how much money you would lose investing in Cramerica’s strategy. If you want my advice their is only one good book out there and it’s Benjamin Graham’s book the Intelligent Investor.
Lance Murdock on March 17, 2008 at 11:48 AM
Just like a lady – when he says no, no, no. He means yes, yes yes.
lorien1973 on March 17, 2008 at 11:52 AM
Well said Thacker.
JiangxiDad on March 17, 2008 at 11:52 AM
Blithering Dunderhead.
EHeavenlyGads on March 17, 2008 at 11:52 AM
Made me think of Kudlow.
JiangxiDad on March 17, 2008 at 11:53 AM
This is why there are disclaimers on “advice” shows.
EJDolbow on March 17, 2008 at 11:55 AM
We’ll see what happens once JP Morgan stabilizes it.
- The Cat
P.S. He’s not for day traders.
MirCat on March 17, 2008 at 11:55 AM
ReRuns already ???
Hindsight is a beautiful thing, isn’t it ??
I’m sure everybody here laughed at him at the time he said it.
Not a Cramer fan..but come on holy ones.
redrock on March 17, 2008 at 11:57 AM
Kudlow isn’t that bad. He believes that America’s economy is always strong. But even Kudlow has acknowledge the troubled US economy in the last few months. Cramer hasn’t.
Lance Murdock on March 17, 2008 at 11:57 AM
TheBigOldDog on March 17, 2008 at 11:59 AM
About the only real reason to watch this gasbag these days is to eventually see his heart finally blow a major gasket and he drops like a rock right in the middle of a rant. Other than that, this clown is in the same “entertainment” bracket with Olby-Dolt. Both of them a waste of good air time.
pilamaye on March 17, 2008 at 12:02 PM
Buy low, sell high.
Is this the rumor or the news?
profitsbeard on March 17, 2008 at 12:09 PM
Sydney- And the really sadly ignored aspect of all this-the Federal Reserve was put together in 1913 under the premise that the Fed Res was to ensure the integrity of the dollar. OK, how’s that workin’ for ya’? Seems that they, like the Federal Government as Constituted (sic on purpose), forgot what their charter was all about.
Let Bear Stearns fail. Let the banks fail. Clear out the deadwood. Don’t subsidize failure (failure that the Fed Res and the Fed Gov’t created). All you get is more failure- “You always get more of what you subsidize and less of what you tax.”
Note to GWB and Bernake and Congress-GET THE H*LL OUT OF THE WAY!!!. We’ll be just fine if you’d just quit “helping” us.
GWB says that he’s going to give us a “booster shot”. Yah. Every time that we get a “booster shot” we come down with a new strain of the disease-That we originally got from the government carrier.
If you want to see how the Fed Res and government help really works, go to “Myths of the Great Depression”
It’s a real scary eye-opener!
Amendment X on March 17, 2008 at 12:11 PM
Have never heard him less than bullish. Going back a decade or more before his current more “highbrow” show.
JiangxiDad on March 17, 2008 at 12:15 PM
I’ve always been a believer of “a monkey can pick a stock better than a financial advisor” theory.
When these so-called experts would call me on the phone recommending some investment vehicle that has typically been paying a 7-8% return all I had to ask was, “Will you guarantee that rate of return?”. The conversation would always end at that point.
fogw on March 17, 2008 at 12:16 PM
The only good spot in this disaster is that we can pay down debt with inflated dollars. If the high price of goods and services doesn’t suck them up. Catch-22.
davidk on March 17, 2008 at 12:17 PM
This guy is a tool. I never listen to tv financial advice. Case in point: all the FNC weekend stock shows wherein one guy will suggest a stock and then the next guy will say why that stock completely sucks then give his own pick which then gets shot down by the next guy,,,and so on. I am supposed to do what with this type of advice???
HawaiiLwyr on March 17, 2008 at 12:17 PM
I hope this thread doesn’t get bogged down in conspiracy theories about whether the Federal Reserve is constitutional or not. Frankly, at this point, I don’t give a damn if it is or if it isn’t. I’m concerned with whether the economy is stable and if the government is pursuing the right policies.
There is no doubt that it was good policy to prevent a run on the banks. Ultimately, the merger of Bear Sterns & JP Morgan is a good thing, because it prevents bankruptcy of Bear Sterns, which would unravel billions of financial transactions and cause a crash to the market. Yes, a crash.
That said, the Fed should beware of its open-door policy towards lending, because it is already creating inflation. Milk is more expensive than ever before. So is corn, meat, eggs, gas & oil, and other basic commodities. Federal policy is exacerbating the problem, by promoting the mis-use of those products (corn is being used for ethonal instead of feed for cows).
The problem is, you have to massage the economy so that the failures fail, without allowing them to crash the entire system. In this environment, it’s almost guaranteed that inflation will occur. You can’t get banks to lend unless cash is cheap, but cheap cash will cause inflation.
Sydney Carton on March 17, 2008 at 12:23 PM
He’s an entertainer. Anyone who goes to a cable show for their stock picks deserves whatever they get.
Clark1 on March 17, 2008 at 12:25 PM
In his defense, he probably stayed up all night continuing to weep and cry for poor poor poor Eliot Spitzer.
its vintage duh on March 17, 2008 at 12:25 PM
This guy is a tool. I never listen to tv financial advice.
HawaiiLwyr on March 17, 2008 at 12:17 PM
Yeah, who can believe any of them. Like the guys telling me a year ago that gold would double or triple in the next few years. What a load of crap that was eh?
Soulsirkus Public Safety Announcement….
Yo Rappers beware, the new worth of those gold teeth in your mouth just may get you iced, straight up dog!
soulsirkus on March 17, 2008 at 12:56 PM
This guy is a moron.
My advisor told me months ago what was likely to happen to the market this year and had me rearrange my portfolio to protect my earnings. I owe my lifes savings to that brilliant advice.
IMHO my advisor is far more qualified to have his own show than Cram er ever will be.
leanright on March 17, 2008 at 1:15 PM
I invest all my money in Nigerian shell games. Do you think that’s risky?
robblefarian on March 17, 2008 at 1:16 PM
Moron!
RobCon on March 17, 2008 at 1:25 PM
I don’t think anyone on this board, including myself, has much real experience with a credit crunch at its worst. When no one is willing to buy or lend and prices are just falling and falling. In this context, I support the idea of a central bank that seeks to keep markets orderly. Unfortunately, we have a Fed that has over the years continuously inserted itself into crises in order to prop up financial institutions that have made bad decisions.
If the Fed hadn’t been involved in the 1998 LTCM crises then we might not have had the internet bubble. A recession at that time which took down a big money center bank would have made everyone a little more wary of funding stupid internet start ups. There is a reason for economic cycles. We need to calm the animal spirits of capitalism every once and a while with a crash. Having put that off for at least since 1987 we now have a lot of debt and leverage which needs to be worked off.
There is no quick and easy solution to this problem. It is probably too big for the Fed to handle. Just like the WW I was known as the Great War, the Great Depression will be known as World Depression I.
Bill C on March 17, 2008 at 1:46 PM
have you ever seen that disclaimer? it rolls on and on — almost appears as a joke, but very real.
entertainment/advice shows are a joke and should always be avoided (include the oprah and dr. phil in there).
jimmer on March 17, 2008 at 2:06 PM
I don’t want to defend Cramer but the CEO of Bear Stearns was all over the financial news saying they were in perfect condition 48 hours before they essentially went into federal receivership. You want to get pissed off at someone, get pissed at Bear Stearns who were either acting in a highly illegal manner or didn’t know what the hell they were doing.
Cramer got royally screwed up the wazoo by the management of Bear Stearns as did every other investor in Bear.
Django on March 17, 2008 at 2:16 PM
The Wall Street Journal reports that Singapore’s DBS Group Holdings, the biggest bank in Southeast Asia, will no longer do business with Lehman Brothers Holdings Inc. The Journal notes: “DBS has sent an internal e-mail saying it would not deal with Lehman Brothers from now on. It said DBS shouldn’t enter into new dealings with Lehman or Bear Stearns.”
- Peter Cohan
MB4 on March 17, 2008 at 2:23 PM
Cramer shouldn’t be giving out advice if he is full of shit.
echosyst on March 17, 2008 at 2:48 PM
On another note it is sort of fun to watch the guys on CNBC duke it out and see who shouts the loudest.
Lance Murdock on March 17, 2008 at 2:55 PM
Cramer was just on Erin Burnett’s show and said he wasn’t talking about staying in BSC stock, he was talking about keeping your money in the bank. Yeah right.
justsam65 on March 17, 2008 at 2:56 PM
All that is gold is not yellow snow.
saved on March 17, 2008 at 4:10 PM
So does the guy that wrote in and listened to him.
Canadian Infidel on March 17, 2008 at 4:16 PM
The question was about having money in the bank, but the graphic showed stock quotes. I don’t know about this one. I think Cramer is trying to cover his ass, but he might be telling the truth.
malan89 on March 17, 2008 at 4:30 PM
How soon we forget. In “The Monetary History of the United States” Milton and Rose Friedman describe how the Federal Reserve turned a deep recession and correction into the Great Depression.
The banking and financial system had stabilized by 1931 when many European nations abandoned the Gold Standard. Instead of letting gold float, the Fed attempted to defend the dollar as gold reserves left the country. The result was a second liquidity crisis that resulted in a nationwide banking collapse. Had the Fed provided liquidity instead of defending the dollar the Great Depression in the United States would have just been a long period of slow growth.
Chairman Bernecke has done his homework and at least for now will not sacrifice liquidity for a higher priced dollar. If he sticks to his guns Europe will end up paying the price for its slow economic growth as a high Euro deinstrialized the continent.
jerryofva on March 17, 2008 at 9:01 PM
hmm…deindustrializes the continent
jerryofva on March 17, 2008 at 9:29 PM
Listen! There’s this dough, see.
350 G’s!
Buried under this Big W. You’ll see it.
Drive down and dig it up. Dig it all up.
silverfox on March 18, 2008 at 1:52 AM
“Say, what is a big W ?”
“Do you think you oughtta drink when you’re flying?”
“This is a little girl’s bike. This is for a little girl!”
“Try me, I’m pretty gullible.”
“Now what kind of an attitude is that — these things happen. They only happen because the whole country is just full of people who, when these things happen, they just say, “These things happen.” And that’s why they happen!”
silverfox on March 18, 2008 at 2:07 AM