Jim Cramer Loves The Big Sh*tpile; He Loved Countrywide Too

CNBC's Jim Cramer was on Tweety's show telling us how great a deal the Wall Street Bailout is. He went as far to say as he hopes he can get in on the action. I have two reactions. The first is why doesn't Cramer raise money and buy some of the Sh*tpile if he loves it so much? Why don't other Wall Street types buy some of the Sht*tpile?

My second reaction is to remind you of Cramer's "prescience" on the value of the Big Sh*tpile, via Atrios:

Jim Cramer told you to buy at $44. Countrywide will cease to exist... at $7.16.

Jim Cramer is the last person to listen to on the housing crisis and this Wall Street Bailout.

By Big Tent Democrat, speaking for me only

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    Saw Cramer on his Own Show Today... (none / 0) (#1)
    by santarita on Tue Sep 23, 2008 at 06:40:00 PM EST
    all I could think is that he has a lot of faith in Paulson and in the markets.  

    Cramer like all those (none / 0) (#2)
    by Stellaaa on Tue Sep 23, 2008 at 06:53:57 PM EST
    financial guys on tv are cheerleaders.  He has a big fat Charitable Trust that he does not want to see lose value.  

    Of course he believes his buddies will get the work out contracts.  

    This is the full employment act for Wall Street.  They will go on with high fees and charging the Feds for expenses, restaurants etc.  
    They have to cap the consulting fees.  

    He basically sees it as the only way to avoid (none / 0) (#3)
    by robrecht on Tue Sep 23, 2008 at 06:54:09 PM EST
    another Great Depression.  On Friday he was telling everyone to buy gold.  Pretty dire scenario from a mainstream financial analyst.

    My point is (none / 0) (#4)
    by Big Tent Democrat on Tue Sep 23, 2008 at 06:57:56 PM EST
    why listen to him at all?

    Why do people rubberneck accidents? (none / 0) (#6)
    by steviez314 on Tue Sep 23, 2008 at 07:03:40 PM EST
    Why? (none / 0) (#9)
    by robrecht on Tue Sep 23, 2008 at 07:07:23 PM EST
    He's on CNBC, which helps me to know what's going on.  You gotta expect even the best market analysts to be wrong a lot of the time.  Stocks are like that.

    Do you know what Countrywide was? (none / 0) (#10)
    by Big Tent Democrat on Tue Sep 23, 2008 at 07:12:09 PM EST
    Clearly yo do not.

    That is not about a stock pick. That is about completely misreading the Big Sh*tpile.


    Clearly I do. Don't be ridiculous. (none / 0) (#11)
    by robrecht on Tue Sep 23, 2008 at 07:17:02 PM EST
    Then you should not ask the question (none / 0) (#22)
    by Big Tent Democrat on Tue Sep 23, 2008 at 08:39:44 PM EST
    you did.

    Hell, why not listen to George Bush on fighting terrorism then.


    More nonsense (none / 0) (#23)
    by robrecht on Tue Sep 23, 2008 at 08:55:21 PM EST
    I didn't ask a question.  I merely answered your question as to why listen.

    because he shouts! its an attention getting (none / 0) (#13)
    by thereyougo on Tue Sep 23, 2008 at 07:19:52 PM EST

    He got his dough using the rules that got us in this mess.

    No, I don't listen to him, I rather hear Bob Brinker on Moneytalk, KGO Sats.


    As A Sociological Study? (none / 0) (#19)
    by santarita on Tue Sep 23, 2008 at 08:00:35 PM EST
    It is fascinating (and a little scary) to think about who his main audience might be.

    I watched him while I was at the gym today and I have to admit that he made me laugh.


    Heh (none / 0) (#5)
    by Steve M on Tue Sep 23, 2008 at 07:03:06 PM EST
    I used to be a securities class-action lawyer.  When we would research the history of companies that went belly-up due to fraud, one thing we would ALWAYS find in the news archives was a column by Jim Cramer talking about what an awesome stock it was.  Some of my colleagues think he is smart, but I see him as defining the category of Always Wrong.

    Incidentally, there really are a number of players on Wall Street who think these distressed securities are a great bargain opportunity.  Now, whether they're the smart ones or not is not for me to say.  But the reason they're not buying is that there really is a lack of available capital out there.

    When they buy them (none / 0) (#8)
    by Big Tent Democrat on Tue Sep 23, 2008 at 07:04:39 PM EST
    then I will believe them.

    Warren Buffett is buying $5B of Goldman Sachs (4.00 / 2) (#14)
    by steviez314 on Tue Sep 23, 2008 at 07:20:42 PM EST
    preferred stock.  He gets a 10% dividend and also gets warrants to buy up to $5 Billion of common stock at $115 a share (the stock jumped to $135 on this news.

    That $5 billion of stock can support $50 billion of assets that the US doesn't have to buy anymore.

    Why should the US taxpayer buy those $50B of assets instead and not get as good a deal as Buffett?  Why should they/we get a worse deal than Buffett?

    There is capital out there willing to buy stakes in finanicals that give them upside.  It would be criminal if we only bought assets without any upside.


    Buffet for Treasuty Secretary! (none / 0) (#15)
    by themomcat on Tue Sep 23, 2008 at 07:23:29 PM EST
    Hope it helps (none / 0) (#16)
    by Steve M on Tue Sep 23, 2008 at 07:46:00 PM EST
    My favorite mutual fund is heavily into Berkshire Hathaway, which got slaughtered yesterday.

    Give the government the same deal please (none / 0) (#21)
    by Big Tent Democrat on Tue Sep 23, 2008 at 08:38:49 PM EST
    Sh*t.... (none / 0) (#28)
    by kdog on Wed Sep 24, 2008 at 10:27:07 AM EST
    the govt. should just loan Buffet the money interest free to buy up all this crap...dollars to donuts he'll make a profit when all is said and done.

    Offer the knuckleheaded banks 50 cents on the dollar, and cut everybody who is in default's loan payments 20-30-40 percent....bam, instant gold mine.


    Two weeks ago... (none / 0) (#7)
    by CoralGables on Tue Sep 23, 2008 at 07:03:43 PM EST
    Cramer said the Market had bottomed and it was time to dive in.

    There is zero reason to listen to him other than for entertainment purposes. He's a bit below a rodeo clown. At least the clown has the potential ability to help someone.

    What did you think of the Washington Post (none / 0) (#12)
    by Radiowalla on Tue Sep 23, 2008 at 07:17:23 PM EST
    financial reporter, Pearlstein?  

    Tweety was enamored with him, that's for sure.  From my limited grasp of this melt-down, the reporter seemed to be making some cogent points.   I'd be interested in what others thought about his analysis.

    As for Cramer, I automatically lower the volume on my set when he appears.  

    I was shocked by his appearance (none / 0) (#20)
    by Big Tent Democrat on Tue Sep 23, 2008 at 08:38:20 PM EST
    A reporter would speak like THAT?

    He has no idea what the value is.



    cramer (none / 0) (#17)
    by skippybkroo on Tue Sep 23, 2008 at 07:55:14 PM EST
    is always wrong about everything.  never listen to his advice.

    but don't take my word for it.  somebody actually did a study about cramer's advice:

    after sifting through 246 stock recommendations over a period of about 11 weeks, three researchers from the kellogg school of management claim to have found that buying mr. cramer's televised picks is a losing proposition.

    from their paper:

    taken together, our results suggest that the aggregate losers in our event study are the mad money viewers who decide to buy the recommended securities when the markets open the following day, and that the winners are the market makers and arbitraguers who sell the overpriced recommended stocks on day 1, as well as the traders who sell the recommended stocks on days 2 through 12.

    kramer from seinfeld has better stock advice than this guy.

    Humor (none / 0) (#18)
    by Stellaaa on Tue Sep 23, 2008 at 07:57:42 PM EST
    If you want some relief from the goings on, watch this.  If you watched the hearings today, this is how it felt:  

    Marx Brothers

    All I have to say about Cramer (none / 0) (#24)
    by andgarden on Tue Sep 23, 2008 at 09:07:18 PM EST
    is that, like Chris Matthews, he has a very strong Philly accent.

    He did say (none / 0) (#25)
    by MichaelGale on Tue Sep 23, 2008 at 10:50:17 PM EST
    that Hillary Clinton was the best candidate to deal with the economy.

    even a broken clock is right 2 times a day ! (none / 0) (#26)
    by thereyougo on Tue Sep 23, 2008 at 11:47:53 PM EST
    hm (none / 0) (#27)
    by connecticut yankee on Wed Sep 24, 2008 at 08:15:21 AM EST
    An MSNBC reporter said she heard that the buyout would likely involve something in the neighborhood of 65 cents/dollar. A potential return of 7-8% for the taxpayer was mentioned.

    It's the first report Ive heard of an actual value on this stuff.