Jim Cramer Is Starting to Sound a Lot Like Lenin

Jim Cramer said on his "Mad Money" show that Great Depression 2.0 is off the table now. His mantra is "When facts change I change too". I'm signing under this statement any time. The only problem I see, facts haven't changed, yet. Yes, the Fed is trying to flood the economy with money, but this money doesn't go farther than Treasuries. Yes, there is the TARP program. All it can really do is to help banks to conform to reserve requirements. Yes, there might be some help to GM and Chrysler which at least will keep some people employed. But so far, we are in deflation. GD 2.0 is not off the table until we see at least some inflation.

But Jim also said one thing which reminds me of my life in Soviet Union. He said that declaring a Great Depression would be bad public service or something like that. This is the first time when Jim really speaks the same language as Lenin, whose portrait he is keeping in his studio (he thinks they look similar, nothing of the sort, by the way). No Jim, saying what's "good for the public" instead of truth is a very bad public service. It's just a lie. I understand that politicians are lying (sorry, saying what public wants to hear instead of the truth) quite often.

But Jim Cramer is no politician! He was a hedge fund manager, extremely successful, and he never forgets to remind us about it. He gives investment advice, i.e. telling people how to make money. Tell me honestly, Jim, would you buy now counting on recovery or counting on a possible Great Depression? I don't care about public good when investing. I only think about my money. For public good, I donate to charities, I vote and maybe some of my articles are for the public good too (not for money, that's for sure).

Fortunately, Jim's investment advice isn't tainted by this approach. I agree with the advice to buy high yield companies with reliable dividends and acted on it. But there are some new filters in my head when watching Jim.

Comments

[Scalpulator:]

I wasn't the only one in disbelief then...

BTW: It is a known and growing trick to trade against him the day after his advice.

2008 Dec 16 08:46 AM

[Archman Inv...:]

Cramer, July 2008:
"Bye Bye bear market"

Zero accountability, coupled with no shame.

Enough said.

2008 Dec 16 08:50 AM

[raising4dau...:]

Cramer? Madoff? What's the difference?

2008 Dec 16 08:58 AM

[CLH:]

A meaningless article.

2008 Dec 16 09:17 AM

[KSengineer:]

"saying what's 'good for the public' instead of truth is a very bad public service". Well said. Telling the truth used to be the American way. I fear that is no longer the case. I hope we don't have to experience a Soviet Union style country before we wake up to our errors. Embracing socialism is a huge, first step. Clearly, that is where we're headed. I can't believe what's happening before my very eyes. And the retoric from the government is scarrier than ever. We no longer want the truth. We prefer pleasing fables.

2008 Dec 16 09:28 AM

[Larry House:]

Cramer is becoming less of a voice that is listened to. He has been all over the map in his views, and he has really struggled finding the right approach to this market. First it is don't put in money if you need it in 5 years, and then it's not going to be so bad. He hasn't a clue. It is my money, and I will make the final decisions. Heaven help an investor who is jerked around by Cramer and his like.

2008 Dec 16 09:59 AM

[Socialism c...:]

I've been trending away from Cramer since he began talking like a Socialist a couple months ago...urging the Fed to intervene in housing and mortgages. Memo to Jim: it is NOT the job of our federal government to be involved in housing!! That is one of the ROOT CAUSES of this meltdown -- subprime lending to those who were NOT qualified!! We've seen this reinforced by the nearly 50% of those who had their mortgages modified under the plans pushed by the Fed and then *redefaulted*!!

Get the government OUT OF BUSINESS.

2008 Dec 16 12:47 PM

[goingbankrupt:]

Actually, it was Keynes who said "When the facts change, I change my mind. What do you do, sir?"

Greenspan said something similar recently in front of congress, which gave me the impression Keynes had been on his mind recently, as it now appears Keynes wasn't such an idiot after all. ( Lenin, of course was an idiot. Big time. ) Maybe Kramer's realizing this also.

Sorry folks, the boom/bust cycle is inherent in the free market system. The last big bust before this one become know as "The Great Depression". If you don't want to go through that every decade or so government needs to serve as a counterbalance to the fluctuations of the economy. Just like Keynes prescribed. When they reduced governments role in the economy, the boom bust cycle increased.

Sorry if reality is so unfriendly to ideologues on both the left and right.

2008 Dec 16 08:34 PM

[NormK:]

If you watch Cramer regularly, as I do, you will recall that before the AIG bailout, he was pleading with the Fed and the Gov to step in and save them. After AIG's post-bailout spending came to light, he was quick to flip flop and say "what were they thinking?" and blame AIG for squandering our tax dollars. I love Jim's advice and have often traded successfully base on his recommendations. But he does not always tow a consistent line. I think he should admit that he flip-flopped on AIG and come clean since it's in the video history anyway.

2008 Dec 17 10:50 AM

[Jimbo:]

I have begun to think that Jim Cramer needs to have his medication adjusted and possibly lay off the strong coffee. Many individuals on Wall Street have disgraced themselves and Capitalism. One consequence seems to be we are entering a period of Socialism. I am seeing a developing trend in the coming Obama administration to take the country in the direction of a Socialist transformation and this seems to have been his goal all along. The Wall Street crowd has just handed the country to Obama and company on the proverbial silver platter.

2008 Dec 17 10:50 AM

[grandad:]

Why do people always have to throw labels on everything. "Every thing in moderation" A lack of government control is what is responsible for our problems. I get the impression some would like the government to just go away and we could all arm ourselves and live like they do in Somalia or parts of Pakistan. NO ONE, on both sides of the political spectrum, wants the government to be involved in our lives or business dealings, but the house is burning down. Someone has to throw water on it. Who else can do it ?

2008 Dec 17 11:24 AM

[paintismotion:]

Cramers wants us all to go out and buy a house in the next three months? who is he kidding. Cramer is invested in the market and so he has a personal stake in all of this. would he advocate bailing on the market? no. the closest he has come is to recommend doing "nothing" as in he knows nothing. he actually does but in the case of buying houses and reinflating the RE bubble - sorry jim ... tay in and you'll be boohooyah. I am out and staying out and looking for ways to protect captial from the charlatans of wall street, the government and various "tv" shows. defaltion is happening now a bit and on the horizon you can see a grwoing wave - of what i wonder ... well, let me guess ... its the growing tsunami of INFLATION. OPnce we get thoroughly p9unded by that what comes next JIM - DEFLATION SUPREMO? DEPRESSIONARIO SCARIO SCENARIO! dollars suck and so does the market. short GS where i can.

2008 Dec 17 12:06 PM