Cramer's Stop Trading! Arrests in Silicon Valley? (10/22/09)

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Thursday October 22.

Bank of America (BAC), AIG (AIG), Citigroup (C), General Motors, Chrysler, 3M (MMM), Nucor (NUE), McDonald's (MCD)

Cramer reiterated his support for government proposals to cut pay for executives of companies receiving federal funds; “The government has every single right,” he said, “to demand that people at these banks don’t do as well until they return the money.” However, Cramer doesn't think government involvement is enough; compensation committees need to be more vocal and feel free to stand up to pressure from monied executives.

Cramer noted the mixed action in stocks on Thursday, with a strong performance by 3M (MMM) and a weaker showing by Nucor (NUE). While stocks depending on a strong economy showed gains, McDonald's (MCD), usually considered a recession-play, was up. One "gloom busting element" was that a drop in oil didn't automatically bring the stock market down. In the wake of the Galleon hedge fund scandal, Cramer expects to hear about arrests in Silicon Valley; "That's the next shoe to drop," Cramer said.

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Comments

[mngordo:]

Mr. Cramer's constant running off at the mouth about anything and everything has given him, over the years, the same degree of credibility as that of the Iranians in negotiations. Why do you persist in paying attention to an entertainer/clown on site that is supposed to be serious about investment/finances?

Oct 23 10:36 AM

[User 82888:]

agreed. Cramer's opinions are typically wrong and typically of no consequence, unless you follow them.

Oct 24 01:01 AM