Cramer On Nationalization: Economic Collapse If Mishandled

Feb 22, 2009 06:42

If you wipe out the preferreds and the bonds, though,
you know I believe the stock market will simply evaporate.
That's how critical it is. I think that we could be down
several thousand points on the wrong move...

Watch:


H/T: Soot & Ashes

banking sector, jim cramer, economic collapse, nationalization

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Comments 18

theheretic February 22 2009, 16:24:16 UTC
So, is he right?

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ytterbius February 22 2009, 19:46:56 UTC
I don't know if he's right or not. It sounds plausable.

In any case, realize that his motivation is very likely SHORT, SHORT, SHORT, and NAKED SHORT.

http://www.deepcapture.com/

Cramer and his circle will probably make a boatload of money if the Markets Crash another could thousand points. He and his circle are crooks of the highest order, in league, at least, with sellers of counterfeit shares of stock.

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theheretic February 22 2009, 19:50:26 UTC
You realize, of course, that in the 1980's the stock market ran from 800 points to 1200 much of the time, and that inflation adjusting the currency places the DJIA back to around 3000 points. We're at 7200 and falling a hundred a week (or so). By the end of the year we may be back at the 3000 level once more. What will that do to the economic recovery? Especially once you start factoring in ANY stock market rise as merely the effects of inflation adjustment NOT value growth. That's hardly the happy outcome people expected in an investment, is it?

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paris_of_priam February 22 2009, 20:25:49 UTC
It's a minor point, but short selling is very dangerous, and most of the professional traders don't do it. If they want to go that route they usually do it with put options. Cramer made most of his early fortune on options, not stocks.

(In any case, Cramer's credibility as an expert has evaporated faster than the DJI, ever since he told everybody to buy Bear Stearns right before it collapsed.)

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fischlehrer February 22 2009, 18:41:46 UTC
Cramer reiterated his call that investors who need a significant amount of cash over the next five years should pull that money out of the market.

“It’s just too dangerous,” he said.

http://www.cnbc.com/id/29304624

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cieldumort February 22 2009, 22:42:49 UTC
He's turning into quite the gold bug, also.

I might agree that gold still somehow looks "safe" (compared to almost anything else).. but when you tell your viewers that the gold market is not a bubble...

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Rant! mcfnord February 22 2009, 19:26:37 UTC
cramer touts stocks on his t.v. show with no clear pattern of success. he's a few steps up from ben stein. i just don't like his alarmism or his lack of proven success. roubini... bernanke... cramer? sorry just dissin but really... isn't he essentially an alarmist screamer of some sort? you bet failure to manage the bank insolvency would lead to economic collapse. how is cramer qualified to explain it?

notice the cramer commercialism that accompanies the interview.

he says nationalization takes over capital structure. here's another view. it won't take nationalization to cause massive unemployment and revolution. oh look there's another pitch for cramer on the screen. cramer predicting social unrest is *not far* from stein predicting Wamu's a buy. and he did.

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Re: Rant! paris_of_priam February 22 2009, 20:35:02 UTC
(That wasn't really much of a rant. You're one of the few who should STOP IT with the decaff. :)

Anyway, Jim Cramer would LOVE to have only been as wrong as Ben Stein. Cramer told his followers that Bear Stearns was a buy.

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Re: Rant! cieldumort February 22 2009, 22:45:46 UTC
"Bye! Bye! Bye!"

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Re: Rant! paris_of_priam February 23 2009, 00:39:30 UTC
I swear, his kids must be embarrassed to be seen with him. I can just imagine his daughter asking him to drop her a block from school, so she won't be seen getting out of a car being driven by a Circus Clown.

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nebris February 22 2009, 20:05:38 UTC
I recommend decaf for ol' Jimbo as well. =)

~M~

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paris_of_priam February 22 2009, 20:28:53 UTC
That ship has sailed. When "Bobcat" Cramer told all his viewers to buy Bear Stearns, and then it lost 90% of its value a week later, the change in his demeanor was dramatic. It looked like somebody pulled to plug out of a helium balloon.

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kayjayuu February 22 2009, 22:45:21 UTC
Okay, so break this down for me. Cramer or no Cramer, what is preferred stock? Is it insurance companies, financial companies?

Has nationalization been floated keeping the preferred stock? Or can it be left alone at all?

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cieldumort February 22 2009, 22:47:54 UTC
This is about as good a quick and dirty description out there:

http://www.investorwords.com/3778/preferred_stock.html

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