The shock and awe of the financial market meltdown is just beginning according to CNBC star Jim Cramer.
Cramer on CNBC's Sept. 29 "Mad Money" cautioned viewers about the current market. His advice - do nothing because there's more pain to come if no rescue plan makes it out of Congress. As he put it: "sit on your hands."
"Only those stocks that are sure enough to pull the trigger on until we get to Dow 8,200 ... I said if the plan failed - only those you should be looking at - looking at," Cramer said. "Today's 777-point drop was just the beginning. Now is not the time to put your money at risk, it's the time to protect your nest egg."
Cramer recommended only stocks of companies that didn't need to borrow money in an environment with tough credit and sold products that would still be in demand during a bad economy - a very narrow spectrum of stocks. Otherwise, he told viewers to put their money in FDIC-insured banking accounts.
"You will get through this OK," Cramer said. "You'll lose money, but you'll get through it OK."
The "Mad Money" host blasted political leaders for sticking to their ideologies and policy makers, specifically Federal Reserve Chairman Ben Bernanke, for worrying about inflation in a deflationary environment. He referenced his infamous Aug. 3, 2007 meltdown blasting Bernanke for not cutting rates at a time when no one but he saw the banking collapses coming.
"It didn't matter because your political leaders believed the fundamentals were sound and told us day after day after day about that," Cramer. "Your financial leaders said the fight was against inflation, not deflation. We got the worst deflationary spiral since 1932. That's what happens when your house loses a third or half its value."
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If I followed Cramer
September 29, 2008 - 21:38 ET by niner-four-whiskeyFirst step: Watch Cramer for investment advice.
Second step: Flip the channel over to Fox Business, watch Dave Ramsey and try to figure out how to get out of the mess that watching Cramer got you into.
He sure has changed since he
September 29, 2008 - 21:47 ET by d1carterHe sure has changed since he was on Seinfeld....
Hair
September 29, 2008 - 21:53 ET by Indiana JoeI liked the old 'do better. Didn't recognize him at first.
"... smells like... victory." - Robert Duvall
Hey, Cramer!
September 29, 2008 - 21:53 ET by RHRobinsonMDFor an analyst who's stock pics consistently underperform the market, Jim Cramer may be better off keeping his pie hole shut. He was pushing Bear Stearns stock to the public just before it collapsed in March. He also said that the market had bottomed last October. As I recall, last year he called individuals questioning bank balance sheets idiots. He tends to make a lot of predictions and claim credit for those that come to pass. As many around me say, even a blind squirrel finds a nut occasionally (they also say it's all fun and games until someone loses a nut, but I don't even know what that means).
While a temporary collapse and shake-out of the financial market will be painful for the 6% of our workforce in that field, it is likely the impact on the rest of the economy will be much less egregious. Other financial institutions will rise to fill the void. Some financial firms have emerged quite strong throughout this mess due to sound leadership (BofA, Wells Fargo) and rewarding those who fail is not a good idea.
It is time to let the free market work without government interference (which got us in this situation-thanks to Barney Frank, Maxine Waters, B. Hussein 0bama, et al.) and shake out the weak players. If you believe that Chris Dodd (D-Countrywide) and Barney Frank (D-Gaywhorehouse) can or will craft legislation that will be helpful to the people of this country I have many bridges I'll be glad to sell you. Vote no on the bailout.
First, what is it you want us to pay taxes for? Tell me what I get and perhaps I'll buy it. - Robert Heinlein
Cramer gets paid for this advice?
September 29, 2008 - 23:13 ET by Lame CherryCNBC actually pays this Cramer for advice to buy only stocks in a market which will not go down due to irresponsible accounting and a company that only sold products that people would buy.
Then the super advice of put money into banks. I will assume in certified deposits and not passbook as Cramer did not explain that. Perhaps he saves the really good advice if you throw him a cookie.
The opposite of this is Cramer in good economic times is telling people to risk their money on idiot companies.
Anyone with common sense knows you only invest in long term stocks of companies which actually produce something. After the dotcom bust only a fool would buy Google stock which produces nothing and if the power goes off it ceases to exist.
All of that is what is termed common sense from a 4 year old in knowing not to set your cookie down by the dog as the dog will eat it and the 80 year old knowing one does not give the neighbor kid your checkbook to write out their own lawn mowing payments.
Economics is not that hard. Warren Buffett rapes millions of people of funds yearly to prove that point. The difference is all Christians have morals who will not profit off of someone else's misfortunes.
Cramer in his advice is the poster boy of all things wrong economic. If he was a doctor his advice would be not to eat poison, a fireman would be to not douse your matches in a bathtub of gasoline and if he was an investment analysis it would be not to buy stock in insolvent companies.
Wow who would have ever thought of that.
*HIC IACET ARTORIVS REX QVONDAM REXQVE FVTVRVS
Warren Buffett
September 30, 2008 - 01:21 ET by TheCynicDidn't Warren Buffett make quite a lot of money by taking basically the opposite stance? That during a crash is a great time to buy because a lot of solid, stable companies are going to have their stocks become majorly undervalued and there's a lot of money to be made when the market is low. Investing when it's high ("safe") seems to be common sense, but if you want to be a billionaire, investing while it's down ("risky") is the way to go.
Everyone should lay off Stocks unless they don't need the money
September 30, 2008 - 02:00 ET by PopularTechWhat Cramer should be telling people is they should never invest in the Stock Market unless they don't need the money they are investing. Instead put the money in a savings accounts or government bonds. I have never and will never invest a dime in the stock market and I still have all my money. I don't gamble and never will.