August 06, 2007
– Comments (8)
A friend just emailed this to me and I couldn't help but share:
Wow is really the only thing that comes to mind. Wow, wow, and wow.
I was all set up to make some snarky comment about Cramer. Then I watched the video.
(Before Watching clip) let me guess it's the clip about the fed lowering rates...
(After clicking) called it. Here's why it doesn't matter
I can't watch the video on my laptop, but I'm assuming you're talking about the clip with him and Erin Burnett. You should have seen it on live TV. Erin probably thought Cramer's jugular was going to explode (I sure did).
On a serious note, he's wrong IMO. The Fed shouldn't be bailing out the markets. People have been playing fast and loose with risk for years, and now it's catching up with them. Nice little blurb on the subject from today's WSJ here.
Also, not that it really influences my opinion on this issue, but investment banks and their ilk epitomize the sink or swim mentality. Now people are out there (like Cramer apparently) want them to be bailed out by the Fed. Seems very ironic.
My guess is Cramer has some type of stake in the subprime market. He's too angry to be simply stating his opinion. He sounds like someone who is losing/has lost a lot of money or respect because of the subprime meltdown.
The most common reaction that I've had to that video is that he must have some vested interest. It wouldn't surprise me.
I just felt bad for poor Erin -- she didn't quite know what to do.
I can't imagine that the Fed "opening up the discount window" is the right solution to the credit problems. All that does is teach people that they can take all the risk they want, and when things get bad the Fed will bail them out.
He does have a vested interest...He said it. He said the heads of the banks are calling him daily to "do something besides stand on the sidelines". He wans to bail out "his people".
They could have used a cardboard cutout of Erin for that segment and the viewers would not have known the difference.
I buy the bail out "his people" argument... to some extent at least. I think there's also some big effect on his wallet.
I think it's great, though, that he basically said that the heads of the world's major investment banks are calling him and saying "Please Cramer, do something for us!" Nothing like a God complex with a cup of coffee in the morning.
He has NO IDEA how bad it is out there!!!!!!!!!!!!!!!!!! NO IDEA!!!!!
Please check out Cramer November 2006. I you are looking for a WOW this is it. Compare and enjoy