Cramer Explodes : Bernanke Has No Idea How Bad It Is

Usually CNBC's Jim Cramer, host of the popular "Mad Money" show, is passionate about what he says, whether it be his current stock picks or general market commentary. Today is the 9th consecutive meeting that the Fed has left rates untouched. Jim predicts a rate cut in October. The next Fed meeting is planned for September 18th, 2007.

The video below is of Mr. Cramer at seemingly at his witts ends with respect to Bernanke's "by the books" approach to handling federal monetary policy issues. What is tricky in my opinion is that either way you argue the rate debate there is strong points for both sides. Some would argue higher rates could destroy the housing market and start the economy into a downward spiral. Lower rates could help fuel the inflation concerns. Some, as seen below, feel more strongly than others.

I would love to hear your reactions to Jim's concerns and what you think the fed will do come mid-September.

22Dollars - Personal Wealth Management
Stock Quotes and Growing Personal Wealth by Managing Your Own Money! 22dollars is your online source for investment ideas, stocks analysis, business and other worldly issues. Geared towards the young professional, 22Dollars is written by successful young professionals who are ambitious and driven to succeed in life, cause in the end - no body cares more about your money than you.
Article by Chad Lapa | Subscribe via RSS | Join Club22 Free

6 Comments - Post your comment below.

Steve
Aug. 8, 2007

I'd like to start by saying that I am no fan of Cramer, not even a little.

I have held similar views to what he expressed regarding Fed policy since late last year. That doesn't mean that he and I are correct. I've been trying to position myself for something quite severe.

The Fed policymakers are never going to say we're headed for recession or worse. It would become a self-fulfilling prophesy. Their statements will always be on the rose-colored side and they will react too slowly to avoid conveying panic.

Cramer alluded to the Great Depression. If he is being honest about his feelings and not just acting, then he's expecting things to get quite bad. I don't know and I'm not sure anyone can really KNOW.

Be Prepared.

Dave
Aug. 8, 2007

Kramer unstates the current equity condition. Past loose lending policy, set by the Fed, applied not only institution to consumer but also institution to institution. The fall out is going to kill equity investors in the end. Fixed income investing in the market is like catching a falling axe. We have only just started to see the first drops of blood of a terminal patient. I cashed out at 14000 due to an excessively euphoric market. This combined with the current debt to equity ratio smells too much like 1929.

Set em right Jim and don't let up! Wish I could have you on my side when I address the Social Security and Medicare unfunded issue with my congressman. They just don't get it!
Sincerely, Dave

JJ2000426
Aug. 11, 2007

You MUST pay attention when something is so extremely volatile! Bush's people are on board this stock, if you follow the link on paragraph 4. Is the neocons responsible for this?

SWC is incredibly volatile! Hammered down half from the $16.47 high in just three months, Bottomed at the $8.03 on this Tudesday before the earnings conference call, immediately rallied HUGE next day to high of $11.04 and settle for a 20% gain at $10.40, flat on thursday, Rallied Friday moring to high of $10.84 and then plummeted to the low of $8.38!!! Such a stock with extremely narrow floats traded on huge volume and huge swings up and down. I bet you never saw anything like that!!!

It's a swing trader's PARADISE! I would guess most day traders would LOVE to see such volatility. Such huge daily swing creates huge profit potentials if you can do it right.

This is an incredible stock worth paying attention to. Spend your weekend study it. Maybe you can swing trade and get a quick 20% out of it in one day! And tell people about this interesting stock.

Floyd
Sep. 24, 2007

Jim Cramer............

It looks to me like that lady wants to shoot herself.

consolidation bills
Dec. 4, 2007

Only time will tell. It's my understanding that the rest of the world will not get pneumonia when America coughs. So, would it be better to invest more outside the US than inside?

debt
Dec. 19, 2007

I like watching Cramer, but I think sometimes he should give benefit of the doubt with regards to the Fed. They are obviously privy to information he's doesn't have access to.