(For those who say I just don’t get it… get this)
If there has been one recurring argument I have made probably more than any other (yes, even concerning The Federal Reserve) is the one concerning who I call “The Buzzer Banger” also known as “Cramer” on CNBC™
Mr Cramer is someone I consider the most dangerous person to ones 401K across the entire mainstream financial/business media. I have given my reasons a multitude of times, given examples, quoted others that actually tracked his calls and more, for years.
Those years began during the original market gyrations during the onset of what we now call “The Great Financial Crisis” beginning in 2007 and culminating through 2008 into early ’09. The final, and what should have been the final time this person was allowed near a camera or microphone of any self respecting network (maybe that’s the clue, but I digress) giving investment advice with his calamitous Bear Stearns advice, and his subsequent weaseling of trying to say (and spin) he didn’t say or mean what he said.
Nowhere was this covered and exposed better than by Jon Stewart on his Daily Show during said period. All one needed to know was laid bare there. I myself have referred to it many times over the years and it’s worth watching again. For those that have never seen it, it is a must see for context as I further expand on this topic.
Here’s the link via Comedy Central™. “In Cramer We Trust”
The reason why the above is important for context is this…
On March 4th, Wednesday of last week the markets surged with the Dow Jones Industrial Index™ over 1100 points (e.g., 1173) and it was none other than the famed “Buzzer Banger” that took to the airwaves to point out to anyone still watching, that his “most trusted market indicator says to start buying stocks.”
The entire surety of acumen he used throughout this entire argument was pure unadulterated drivel. That’s my conjecture, but now there’s proof.
He claims throughout this presentation that the last time “he” was mistaken in reading this so-called “trusted” indicator was when the entire markets collapsed, meaning, the indicator was correct and he was wrong – but not this time!
I’m pretty sure you know what I’m going to say next, don’t you?
As I am typing this the S&P 500™ futures contract are in “Limit Down” status, as in – they are frozen from going any lower until the cash market opens at 9:30am in the U.S.
The markets were open in the Sunday session for about two hours, crashed, and are now limit down – just as I have been warning on my show these past few weeks. And here we are. (i.e., Limit Down means they have reached the 5% down limit and no trades will be allowed to sell lower than ~2818. )
And no, that’s not a typo – that’s how low we’ve spiked down.
Over the past few years as the incessant “Fed’s got you’re back” mantra has gained confidence Mr. Cramer himself has regained his own confidence. As I’ve pointed out too many times to count, for years he would couch every “Bull” call with the disclaimer of (paraphrasing) “Well, we know this will all end badly.” He said it so often I would laugh.
But what I would reiterate in no laughing manner was the fact where I said: You’ll know how much he’s drank his own Kool-Aid® as that disclaimer begins to be heard less and less. Over the last two years or so he’s dropped it all together, as I’ve pointed out, again, too many times to count.
But I just so happened to want to watch CNBC last week and especially his show to see just how they, as well as he, were covering the most recent volatility. (Yes, sometimes I’m a gluten for punishment) Let’s just say, I was lucky to pick this day because it was probably a 1 or 2 chance in 365 that I would at all. Let’s just say I was both in awe, as well as down right speechless. And for those that know me well – that’s saying something.
The amazing thing was, I was so speechless and awed by the brazen claim for such surety that I started screen-capturing it because I couldn’t believe what I was watching and hearing!
All I kept saying to myself during it was: If this market ever does fall apart – you had better hope it ain’t any where near this time-frame because if it is – this will make the Bear Stearns debacle look pale in comparison.
And now – just two trading days later and two hours into the over-nite Sunday session – the markets have crashed and are down over two thousand points from where he told everyone they should be buying.
And we may only be at the start, yes, start of the sell off.
If the markets do bounce back from here is immaterial – the proof is now “cooked in the pudding” as they say. How this guy will be allowed to be in front of a camera again is beyond my imagination. But as I implied earlier: That would mean it was a self-respecting network.
Building their (CNBC) entire brand around this guy in the wake and since the financial crisis, like his latest call for surety, is once again seen in “the pudding.” I think that “pudding” now resembles something found in San Francisco, but that’s just me.
Here’s that a fore mentioned segment for you to view for yourself, rather than take any of my insinuations. All I’ll say is this…
If you’re drinking any type of beverage – you may want to wait till after viewing as to not need to clean your desk or screens afterwards. Because knowing what you know now? You may have involuntary spasmodic reactions. (Oh, where’s Jon Stewart when you need him, but again, I digress.)
I really wonder just how many people will be watching this network from here on out. For If the above is any signal on whether or not one should?
I’ll let Mr. Cramer’s own words spell out the reasons themselves.
Because no one could say it better.
© 2020 Mark St.Cyr