Cramer: "Ethanol Is a Fuel That Doesn't Work"

by: Barry Ritholtz

Cramer -- who spews out on so many things he can't help but be wrong on many of them -- at least gets the problems with Ethanol right:

"The bemused best-selling author noted the "utter inconsistency" of laissez faire.

"We want laissez faire when it comes to business -- except when it comes to the insistence of a politically popular but economically and environmentally hazardous renewable fuel, ethanol," he said.

As a result, he said we have unequivocal government support for a fuel that doesn't work and that raises the price of food for everyone including those who can least afford it, which, in turn, forces the Federal Reserve to keep the money supply tight to rein in resulting inflation.

"So we are laissez faire when it suits us … and we are anti-laissez faire when we can help farm states crucify us on a cross of ethanol," he said.

He railed against a tax structure that supports "tax rates for billionaires at a lower percentage level than those who make $30,000 a year. This is utterly shameless."

Populism lives . . .

Jim Cramer challenges 'laissez faire' government
Jan. 30, 2008

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