He'd probably like to take this comment back, but then again there are probably many things CNBC "Mad Money" host Jim Cramer has said that he'd like to take back.
In a response to an e-mail posted on his Web site on March 11, Cramer said Bear Stearns (NYSE:BSC) wasn't in trouble and advised the writer to keep his money in the investment bank:
"Dear Jim: Should I be worried about Bear Stearns in terms of liquidity and get my money out of there? --Peter
Cramer says: "No! No! No! Bear Stearns is not in trouble. If anything, they're more likely to be taken over. Don't move your money from Bear."
On the day Cramer posted that on his Web site, Bear Stearns had a stock price of $62.97. As of noon March 17, the stock price had plummeted to $3.80 a share after the market opened. On March 16 it was announced that J.P. Morgan Chase & Co. (NYSE:JPM) was purchasing the beleaguered investment bank rocked hard by the mortgage fallout.
Update (3:22 p.m.)
CNBC's Jim Cramer responds to his claim and says he didn't mean Bear Stearn's common stock, but Bear Stearns as a bank.
Cramer clarified his remarks on CNBC's March 17 "Street Signs":
"Look, let's understand two things," Cramer said. "I said the common stock was worthless on Friday, as soon as this thing was at 36 because we saw a look at the bonds. If you kept your money in Bear you made out. You got the liquidity. Keeping money at Bear - I guess I could have caused a run on the bank and said take your money out of Bear. I guess people could say hold it, he's saying buy the common stock. I mean, what the heck. I cannot cause a run. It turned out the Federal Reserve guaranteed the money. I'm not going to tell people to pull money out of these places. The Federal Reserve is guaranteeing the money. They are not guaranteeing the equity. I got a lot of things wrong in my life, but I don't regret the fact when I said don't take your money out of Bear. If you have your money in Bear you still got it today. Remember, there's Bear Stearns the common and that person was going to pull the money out of Bear. We got a guarantee. J.P. Morgan is now Bear."
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Hmm. Gives me a bit less
March 17, 2008 - 13:43 ET by Mark FinkelsteinHmm. Gives me a bit less confidence in his prediction that my alma mater Cornell will win the NCAA tournament ;-)
CORNELL...
March 17, 2008 - 14:03 ET by danybhoyI hate to say this, but you now have 1 more thing in common with Keith "BathTubBoy" Olbermann, he went to Cornell.
"Some of us are wise, some of us are otherwise" Mark Levin
The Big Red had a good year,
March 17, 2008 - 19:03 ET by balboaThe Big Red had a good year, but Amaker's doing his best to make sure that doesn't happen again...
Poor Oh Wise one
March 17, 2008 - 13:57 ET by bigtimerPoor Oh Wise one Mad Cramer...wrong again.
I can't believe anyone really takes heed with what Cramer say anyway when it comes to your own money...in this case I guess priceless would fit.
Good thing they had Kudlow on this morning on msnbc...can you just imagine Cramer?
Btw...maybe I shouldn't of said that, I didn't watch all the show he may have been on for all I know.
Bigtimer, your comment made me think of this:
March 17, 2008 - 14:16 ET by Mica the MagnificentI can't believe anyone really takes heed with what Cramer say anyway when it comes to your own money...in this case I guess priceless would fit.
Cashing in your home equity to buy a stock that Cramer recommended -- $400,000
Watching the FOX News Alert that the stock you just bought that Cramer recommended is now almost worthless - - $396,845.25
Knowing that you're now broke, deep in debt, but Cramer is still a millionaire giving advice and selling books - - priceless
Mica....LOL...Your post is
March 17, 2008 - 14:25 ET by bigtimerMica....
...LOL...
Your post is Priceless.
Two Careers down the Tube . .
March 17, 2008 - 14:04 ET by JayTeeFirst Obama, Now Cramer.
End of Cramer's Street credibility on Stock recommendations. You can't miss this one by hours....It's one thing if your Stock Picks from 3 months ago drop by 20%, it's another if your Stock Picks don't last but a few Days, before Diving by multiples of 100 %.
End of Presidential competition, Obama can NOT Compete anymore, you have to have the majority of White Male votes to win the Presidency. . . . no matter how many GD far left voters you think you have in church.
In reality....
March 17, 2008 - 14:59 ET by mbuelObama will not lose any followers. Seriously, any liberal will not be that offended by what Obama's pastor preached for 20 years, look on the front page of newsbusters where CBS early news is telling viewers that Obama's pastor is the same type of fiery instigator as Jesus!
(once again proving that the Obama-messiah cult lives on)
Liberals are myopic they view reality through not only rose colored glasses, but guilt covered glasses.
1) Some of the liberals will AGREE with the pastors hatred of America (God Damn America).
2) Many other libs are the rich white guilt type, that think the white people should pay retribution for slavery, and are okay with the double standard hypocrisy. (that if a white person went to such spirited hate speech filled pastor, they'd be roasted and toasted within a day.)
That in a nutshell covers Obama's believers.
The young hate inspired college age voter... who has most likely been indoctrinated by their teacher.
And the rich white voter who feels guilty about being so well off.
B-HO may not lose Followers but
March 17, 2008 - 16:07 ET by JayTeeHe IS going to lose some votes.
What passes for "Preachin" in a Black Church, doesn't play well in an Integrated Church. And if the Brothers and Sisters in the Hood are listening to this GD Preacher and Others like them, then this Explains why the number one Killer of Black men, are Other Angry Black men.
no doubt
March 17, 2008 - 17:00 ET by mbuelHe will lose some votes. But I question that it will affect a great number of indoctrinated masses.
While you may be right about the black men, I don't think that members of the crips, bloods, and MS-13 are lining up to listen to guys like this, they preach hate of their own.
CRAMER...
March 17, 2008 - 14:08 ET by danybhoyI don't think it's been a good week for Cramer, he watches his friend Spitzer go down like the Titanic, & now his advice on Bear Stearns looks less then good. Just because they were bought out at about 1/15 of it's value at the time of Jimmy's advice does'nt make this a disaster...wait, yes it does.
"Some of us are wise, some of us are otherwise" Mark Levin
I kind of figured Cramer
March 17, 2008 - 14:10 ET by ConservativeRexI kind of figured Cramer may not be up to date when his newsletter recommended buying into a buggy whip and stagecoach harness making factory. This made me a little suspicious.
CR... Good
March 17, 2008 - 14:18 ET by bigtimerCR...
Good thinkin'.....LMAO!
his "growth stock of the
March 17, 2008 - 14:27 ET by jwm45his "growth stock of the year 2007" has been virtually cut in half (NYX)... solid company - toxic stock... I think Cramer's involvement has something to do with how badly it trades
Ease up on the Democrat, would ya?
March 17, 2008 - 14:37 ET by timotheI think the NB crew is just piling on here. It was a bad call, no doubt about it. But there are quite a few mutual funds that were left holding the stock as well. (Morgan Stanly, Legg Mason, Barclays, were among their major holders) If Cramer was so stupid for recommending the stock, these investments companies were equally stupid.
In fact, Cramer's advice out of his new book has saved me a ton of dough in a bad market, especially with my 401k where I put most of my money in an index fund which has lost money, but not nearly as much as other stock investments. He also said to leverage your investments with gold stocks which has been a great hedge in the current market.
Nobody saw the Bear Stearns deal with J.P. Morgan Chase coming. Nobody. So give the rich bleeding heart a break, ok?
Nobody?
March 17, 2008 - 16:04 ET by sarcasmoWell, I guess if you didn't read these folks, and relied on TV's financial "journalists" like Cramer instead. Some of us saw signs of counterparty problems on derivatives quite a while ago, though. http://ml-implode.com/ isn't exactly a new site...
The problem is not limited to the poor management at Bear Stearns, either. Sadly, taxpayers rescued Citi once before when they screwed up on Mexican loans. We're likely to rescue them and others if my guess is right about the shape of their faltering "too big to fail" books.
JMR
A corruption-story the TV media will-not cover.
vidoe clip
March 17, 2008 - 14:50 ET by scotthhttp://www.liveleak.com/view?i=2b7_1205751955
first time i've seen the
March 17, 2008 - 14:57 ET by jwm45first time i've seen the clip - he did NOT say the word "stock" but it's easy to see how people could think he meant the common stock
Stocks ended up today,also
March 17, 2008 - 16:17 ET by bigtimerStocks ended up today,also at least oil prices per barrel ended lower by about four bucks a barrel last I saw....poor msm...they are already crying...boo-hoo.
That silly little Ed Henry had to bring up the refund checks not being able to take effect on the market for a couple months yet after insinuating this trouble is all this administrations fault...blah blah blah....they never quit...busy little leftist bees.
Idiot!
March 17, 2008 - 20:23 ET by VonuHe probably thinks we're in a recession, too.
Idiot!