Pure Truthiness

Jim Cramer's Mad Money, 4/4/08: Cramer Vindicated

Vindicated? Cramer? Hardly. Find someone with a tape or a TIVO and watch carefully.

Cramer got an email from someone calling himself "Peter in Illionois." The email confirmed that he was the person who sent the March 11, email. He also confirmed that he was talking about several large accounts he held at Bear, and not about Bear stock. He apologized for all the controversy his March 11 email caused. That was as favorable as it got for Cramer. It wall all down hill from there.

Although Cramer did his best to hide it, the email and the telephone conversation were critical of Cramer and suggested that Cramer had given bad advice regarding whether to keep money in a Bear account.

After the apology, the email asked why Cramer didn't tell viewers how little SIPC covers. In his conversation with Cramer, Peter asked again why Cramer didn't tell everyone about SIPC coverage.

Cramer gave the expected gibberish that SIPC didn't matter because the Fed bailed account holders out. Peter said, "Yes, but what if they didn't? With accounts this large . . . ." Cramer cut him off and said, "But they did." Peter said again, "But suppose they didn't. SIPC . . . ."

Cramer nearly jumped out of his skin cutting Peter off. Unfortunately Peter didn't persist. What can you expect from some money manager or private banking and asset management client who has several large accounts at an investment bank that is rumored to have liquidity problems, and is dopey enough to email Cramer the Clown to find out what to do?

At least Peter smartened up enough to realize that Cramer's advice was terrible and would put his large accounts at risk. Peter's second communication was aimed at criticizing Cramer, not vindicating him. It is a testament to Cramer's skills of persuasion that he could make the email and phone call seem like a vindication. Now if only his friend Spitzer was as good a lawyer. He'd have convinced us he flew the bimbo down to Washington for secretarial work.