Jeffyboy

Jim Cramer's Mad Money Lightning Round, 1/8/08: ICE Will Heat Up

Jim Cramers read on E*TRADE is amazing. On 11/13/2007 he says E*TRADE is solid at its core. Then a week later he says, "E*TRADE is going down!" Then a week after that the deal with Citadel (11/29/2007 article), he says, E*TRADE is saved. Then a week later he says, "I would not touch E*TRADE with a ten foot pole." Later yet he says they are alread bankrupted they don't know it yet.

He cannot have omnipresent knowledge of the company that contradicts itself. What he his doing is trying to bully a stock into bankruptcy to say, “Hey, I was right.”

90 percent of the stocks he says “buy buy buy” to have already yielded 100 %to 200% growth over time. Buying it before the growth curve while it is cheap is smart, he is not. Sell, sell, sell Jim Cramer.

I do agree E*Trade has a problem, it is easier for them (E*Trade) to fix their problems then CFC or WM (Country Wide or Washing Mutual) because they have products to sell outside of lending that has a good profit margins. E*Trade offers bank function, options trading, stock trading, bond, access to foreign markets, and access to futures markets. We small traders do not have a one stop shop that is affordable to access these markets. That means E*Trade’s business has value at least in my eyes. And truly they have value. Not all loans default and neither do they default at the same time.

This is the stock market’s Y2K moment of the year and Goldman Sacks and others are beating the drums to make money off a bunch over reactive small traders. Why do Goldman and Cramer play these games? Money is made off shorting stocks. And since they lost a decent amount of money on CDO’s they got people to prescribe to they figure they can make back their bonuses by driving people to sell and the have made the money off the short.