Cramer: Another Great Depression? No, and Here's Why (insurance, 2009, wholesale)

[jimmyP]

Cramer gives me great depression.

[John23]

Originally Posted by Nepenthe

Anyone who goes on TV in front of millions and is asked to make short and long term predictions about stocks, company solvency, and the economy is going to be wrong a good amount of the time.

So are people against Cramer himself, or against the whole idea of a show about stock trading where people ask for advice?

I usually listen to a little of the opening schpiel of Mad Money at work since it follows Fast Money. I take it with a grain of salt, like I take virtually everything on television. Though I think he's often wrong, I sometimes appreciate hearing the perspective.

I think the fallacy with Cramer (that other people on this board will agree with), is, there's a line between giving advice, or little tidbits to people to try and improve their finances....vs thinking (pretending), that *everything* is knowable, precise, investable, you can buy or sell whenever you want...the idea that there's always something to do is an insane concept for a television show.

It creates the impression that you can do anything you want from home (trade, buy, sell stocks, buy sell oil, commodities).

The Cramers, CNBC blur the line between something knowable like paying down debt (at 14% which is good), vs speculating on what Bernanke is going to do, or where the FED funds is going. Or if some stock or sector is going to go to X.

And the lack of disclosure (Cramer famously started "Actions Alert Plus" back in the late 90's). You'll get the picks of famous Cramer! Wow. And it was all junk...like EMC at $80 or something.

These guys on tv regenerate, everyday is a brand new day, they forget about what's ever happened in the past.

Big, big difference vs a Dave Ramsey or someone who gets more respect. It's dangerous for the new comer...like playing roulette and thinking the dealer can help you out. That's why the Cramers of the world get toasted...believing they're something they're not, going in front of millions, and continuing it for years thinking nothing is wrong.

Also, he has alot of CEO's on. Biased information? Conflicts of interest?

[geos]

Originally Posted by goodbyehollywood

"We are in no danger of massive bank failures."

"Housing prices signal a bottom by June 30 of next year."

"Washington has taken the necessary steps to save our financial system."

"There are no more surprises to be had."

Seriously? People believe this? You don't have to be a doom and gloomer to know that this is nothing but hot air. I wonder if he can pinpoint the stock market bottom, too?

How is this clown still on the air? Has anyone been as consistently wrong as him? If he says "no depression" I'm really worried.

[geos]

Originally Posted by Shuffler

I was buying some bourbon at the liquor store on the way home from work yesterday. 'Mad Money' was on the TV at a loud volume.

I don't know how anybody can stand watching this guy. How 'smart' he is can be debated, but one thing that can't be debated is that he's a whackjob. I'm convinced he's on meds.

Put him & Suzie Orman together in the same room with a pot of coffee and stand back Although Orman makes a lot more sense.

[Nepenthe]

Originally Posted by John23

I think the fallacy with Cramer (that other people on this board will agree with), is, there's a line between giving advice, or little tidbits to people to try and improve their finances....vs thinking (pretending), that *everything* is knowable, precise, investable, you can buy or sell whenever you want...the idea that there's always something to do is an insane concept for a television show.

So you're saying it's not Cramer per se, but the concept of the show itself.

Originally Posted by John23

It creates the impression that you can do anything you want from home (trade, buy, sell stocks, buy sell oil, commodities).

Well, wait, can't you? I mean, I can sit around in my underwear alone in a dark, quiet, cold room buying and selling stocks and commodity and currency ETFs, options, etc. on my laptop.

Originally Posted by John23

The Cramers, CNBC blur the line between something knowable like paying down debt (at 14% which is good), vs speculating on what Bernanke is going to do, or where the FED funds is going. Or if some stock or sector is going to go to X.

What about the various analyst companies -- S&P Compustat, First Call, Columbine Capital, Thomson Analytics, ValueLine, MarketEdge, etc.? Some of these set price targets and buy/hold/sell recommendations. Granted there's a lot more analysis to pour over, but in the end nobody knows. And virtually ever stock is down this year and few predicted 8000 when we were at 14,000.

Originally Posted by John23

Big, big difference vs a Dave Ramsey or someone who gets more respect. It's dangerous for the new comer...like playing roulette and thinking the dealer can help you out. That's why the Cramers of the world get toasted...believing they're something they're not, going in front of millions, and continuing it for years thinking nothing is wrong.

I guess what I don't understand is that it seems as if no one has even read the original poster's link. I'd be MUCH more impressed by a logical refutation of the points and ideas rather than just standard issue ad hominem attacks against Cramer himself.

Originally Posted by John23

Also, he has alot of CEO's on. Biased information? Conflicts of interest?

Definitely agree with you there. I sometimes will bring up my active trading platform and look at extended hours movements for companies whose CEOs he has on. For instance, he had on the guy from ETP -- Energy Transfer Partners -- and the stock was moving 10% in the extended hours. I wonder if knowing who Cramer is going to have on later that day would be considered Insider information.

[jimj]

Originally Posted by Nepenthe

So you're saying it's not Cramer per se, but the concept of the show itself.
Well, wait, can't you? I mean, I can sit around in my underwear alone in a dark, quiet, cold room buying and selling stocks and commodity and currency ETFs, options, etc. on my laptop.

Thanks a LOT! There's a mental image I really didn't need this early in the morning!!!!

[Nepenthe]

Originally Posted by jimj

Thanks a LOT! There's a mental image I really didn't need this early in the morning!!!!

But how do you know I'm not a beautiful, petite woman with long raven-colored hair, olive eyes, supple alabaster skin, and 10% body fat?

[jimj]

Originally Posted by Nepenthe

But how do you know I'm not a beautiful, petite woman with long raven-colored hair, olive eyes, supple alabaster skin, and 10% body fat?

Good question! Because I find it highly unlikely the above described woman would be sitting in a cold room much less ALONE!

[Lulu101]

Dave Ramsey = Dr. Phil

Originally Posted by John23

Big, big difference vs a Dave Ramsey or someone who gets more respect. It's dangerous for the new comer...Also, he has alot of CEO's on. Biased information? Conflicts of interest?

[Nepenthe]

Originally Posted by jimj

Good question! Because I find it highly unlikely the above described woman would be sitting in a cold room much less ALONE!

Yah, I have to agree.