Posted on June 22nd, 2008 in Daily Stock Market / Economic News - The Real Story
I ride Cramer hard. Mostly for his relentless pumping of mortgage-related financials andhome builders in 2007 when the mortgage and real estate markets were crumbling around him. In his world everything was fine butin the real world, there was some real suffering going on in these sectors. He cost many people a great deal of money, however, provided great short opportunities for those who knew better and for that I love the guy.
I remember him in mid-2007 writing ‘DSL’ on his knuckles and saying Downey Savings would go to $100. This was because he had no clue of sector and because Downey had a huge short interest, which is one of Cramer’s most used tactics. If you notice, many of the stocks he pumps or surpise-pumps are on the Reg-SHO list or heavily shorted meaning he has a better shot at getting the stock to move higher on a potential short squeeze. This betters his odds at saying ‘see I told you so’ if even only for a day.
Shortly, thereafter Cramer threw his rant on bubblevision and said he had warned everyone all along. He is the absolute best flip-flopper ever born.
On June 13th 2008, Cramer was once again talking about his ‘proprietary oscilators’ and how you have to buy everything that has been under pressure with his top picks being financials, home builders and retail. He said that energy would fall. This was after a rough week in the markets for the sectors he said to buy. More months than not, the market rallies into options expiration so he was again going for the short squeeze odds. He is a gambler above all else.
As you know, last week was a disaster led by the financials, home builders and retail while energy did well. Thanks Cramer! This just goes to prove once again, do not listen variety shows for investing advice. Don’t listen to me either. Actually, I don’t give advice, rather facts in order for you to make your own educated opinions.
Don Harold put this wonderful video together. You have to watch this and spread it around. This is a classic. People need to see these things because in my opinion, Cramers antics hurt far more people then they help.
All of this could have been avoided if he would have come out on June 20th and said ‘hey guys, I was early on last week’s call to buy the financials’ or even ‘hey, I made a mistake’. But to totally deny it and blame his viewers for being in those stocks when they crashed last week is just weak.
I think Cramer’s days maybe numbered unless he changes his format and starts talking about both sides of the trade instead of always being able to find a bull market somwhere. He is all over the pace from week to week and his show is an volatile as the market. Remember, he made most of his money shorting stocks. Hat-tip Harold! -Best, Mr Mortgage
NEW DON HAROLD CRAMER FLIP-FLOP VIDEO
While you are there check out this little ditty on the subprime crisis. It’s fun.