(CCN ­ Englewood Cliffs NJ)

With The Dow at new highs of 10440, CNBC¹s resident revisionist historian Jim Cramer encouraged what remains of his audience To “Buy! Buy! Buy!” recommending the purchase of Williams Sonoma (WSM $22) who sells over-priced culinary gadgets that few actually need.  “People LOVE over­paying for things!” he exclaimed.

The Carnival Barker host of CNBC’s “Mad Money,” Mr. Cramer’s assertion has a solid basis in truth for those who listened to him. His most notable “Buy” recommendations have been Sears Holdings (SHLD) at $197 ­down 60%, Google (GOOG) at $700 ­ down 20% and the almost daily reiteration to “Buy” natural gas stocks like Chesapeake Energy (CHK) at $43, which currently
trades for half that at $21. “Hey!” he told a befuddled caller “If you liked the stock at $43, you’ve got to be just nuts about it at $21!

Coincidentally, Nielsen reports that his viewership has moved in lock-step with his recommendations, and is also down 50%.

Cramer remains his own biggest fan despite studies which show his picks have actually underperformed the markets and are no better than those chosen randomly by a chimpanzee.

Cramer’s most notable calls have been the “Buy!” recommendation of Bear Stearns at $65 which fell to $30 and then $2 the following week, before rebounding to $10. His call of the “market bottom,” which records show he made at 13,000, 12,500, 11,800, 10,000, and 9,000 before advising viewers to get out of the markets at 7900.  His revisionist claim that he called the actual bottom at 6500 cannot be verified in print or on tape, and a $15,000 reward posted by a former follower for just such evidence remains unclaimed.

Apparently feeling better than a few weeks ago when he advised viewers to exit the market at 9100, Cramer extolled “I feel really good about the market here” as the Dow peaked for the day.

Category: Humor

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

37 Responses to “Cramer: “People Like Overpaying!””

  1. kmckellop says:

    Hey BR don’t diss Cramer .. he’s the bear’s best friend. His cheer leading pumps up the markets and draws in more suckers .. so we can dump them.

  2. Wes Schott says:

    …that is a riot

    …another chimpanzee

    and a rather unlucky one at that!

  3. Kiers says:

    Should be widely labelled as “Jim the Cramer”. a true clown on a network that blamed Nigeria for THE ENTIRE oil bubble upto 2008. Love em.

  4. SteveC says:

    Cramer is one of the greatest contrary gauges for market sentiment ever. When he panics and says “get out”, BUY. When he proclaims “this market is the greatest ever”, or boastfully mocks the bears, SELL. Combined with a few other indicators, the system works well.

  5. BG says:

    I use Cramer as a contrarian indicator. IMO, stocks will become so despised in the future (2 or 3 years) that he will be thrown out on his head. Frankly, I don’t see how the hell the guy has hung on this long.

    Anybody that listens to this guy has got to be a complete imbecile. I mean totally…..!

  6. TakBak04 says:

    BR…Hoped you’d do an “Open Thread”…Cramer…gack….Could have been a snake oil salesman in the 1890′s.

    BUT…put this “watch” in your travel schedule to Miami/Aruba for the “T/G Holiday.”

    It’s worth a watch. Now…doing this watching with Spouse on Vacation could be a “No..No.” Just do it in “Secret.”

    http://dandelionsalad.wordpress.com/2009/11/20/the-secret-global-empires-russ-baker-john-perkins/

  7. Thats by Rick Ambrose — his shiznits pretty damned funny

  8. philipat says:

    Cramer’s track record for calling the bottom in the housing market is also somewhat tardy! I recall at least 3 incorrect calls.

    I still feel that CNBC might take the opportunity to do a package deal for the transfer of both Cramer and Kudlow to Fox. Honestly they would be a much better fit there and they might then be avoided completely. When it comes to the point that even CNBC viewers have had enough, they have a real problem

  9. Wes Schott says:

    Tak-

    confessions of an economic hitman – that, john perkins?

  10. Pat G. says:

    “despite studies which show his picks have actually underperformed the markets and are no better than those chosen randomly by a chimpanzee.”

    You shouldn’t insult a chimpanzee’s predictive abilities by associating them with Cramer. You know I began watching his show initially because I really believed it might help the average Joe make decisions about their investments. After a couple of weeks I realized that he was nothing more than another Wall Street pitchman.

  11. EricHirschberg says:

    Cramer is largely irrelevant. Bloggers exist because the entire 24 hr news media outlet is so busy trying to manufacture news, that the content has become low grade and frankly un-entertaining. Watching a man ringing bells and screaming just doesn’t provide information or entertainment. MSNBC and FOX are left trying to hire modelesque news readers in the hopes that someone will watch them.
    Frankly, I don’t have the time or inclination to hear or care about what Obama’s kids had for lunch, or what Sarah Palin’s handlers said to whom.

    The real question we should be concerned with is not whether Fox and Clones continue, but whether eyeball grubbing bloggers end up manufacturing attention getting “news” as well. My sense is that “Blogging” will end up denigrating itself in the same manner.

  12. Charlatan says:

    The insult on top of the injury is that Cramer claims over and over again that he always fesses up to his mistakes, when in fact CNBC and theStreet.com bend over backwards to obscure his track record. Here, once again, is the single most galling thing Cramer has ever written or said: “Was there anyone out there who more loudly announced this credit crisis before it happened than I did?” — James Cramer, April 1, 2008.

  13. Peter Davies says:

    Cramer and Kudlow: two ranting charlatans who should be forever banned from the airwaves and cable. But remember in their game there’s no such thing as bad publicity. People will just tune in to see how low these guys will stoop. Best to just ignore them.

  14. TakBak04 says:

    @EricHirschberg Says:
    November 22nd, 2009 at 9:05 pm

    Cramer is largely irrelevant. Bloggers exist because the entire 24 hr news media outlet is so busy trying to manufacture news, that the content has become low grade and frankly un-entertaining. Watching a man ringing bells and screaming just doesn’t provide information or entertainment. MSNBC and FOX are left trying to hire modelesque news readers in the hopes that someone will watch them.
    Frankly, I don’t have the time or inclination to hear or care about what Obama’s kids had for lunch, or what Sarah Palin’s handlers said to whom.
    ———-

    Agree…but Cramer brings in Viewers and “wanna be richers.” They guy belongs in the State Fair Freak Shows, or Tent Revival Groupies Legends.

    Just remember…that much of America is so used to INFOMERCIAL/INFOTAINMENT that Cramer is believed by those who give “Reality Shows” big ratings…out there in the HEARTLAND.

    Cramer by his BIO is a GENIUS…and so many of those sold Snake Oil and Built Empires on Evangelism…should we not understand that CRAMER KNOWS HIS POWER/SEES HIS POWER.

    What’s sick is that we fall for these same folks no matter how educated or UN-EDUCATEd they are. But it’s the Uneducated who preach like Cramer with relgious props who get dissed by the American Intellectuals…while he’s no different from a Fundie Preacher making Millions from his Evangelical devotees on the Cables.

    I’d ask…”How is Jim Cramer different from your Dime a Dozen Zillionaire Evangelical Armageddonists who preach out there? Except that Cramer is preaching to the folks who INVEST….Not those Looking for being SAVED by a FALSE JESUS…PLASTIC JESUS.

    What’s the DIFF?

    Both Selling the same thing really…except one is sanctimonious looking for money and the other is “pure greed” looking for followers for their “Charitable Trust” corporation.

    Forgive my spelling and grammatical mistakes…typing on the fly…gotta go… (I am literate, really)

  15. Charlatan says:

    It is annoying that Doug Kass panders to Cramer as much as he does. Personally, I think it’s a function of Kass’ personality. If he were to see a mob attacking the devil himself, Kass would side with the devil just for the sake of going against the crowd. Nevertheless, consider how pathetic it is that Kass actually wrote earlier this year that we should go easier on Cramer about getting so much wrong because he is being tasked with the impossible, i.e. nobody could chime in on so many subjects and do any better. Seriously, Kass actually took this position. (Query as to what BR thinks of this.) As if Cramer were being forced to do his show or something. Yeah, gee, ya know, what a trooper Cramer is for acting like he knows what he’s talking about in exchange for millions of dollars from the network. Kass gets a lot of respect from the whole Abelson, Fleckenstein, Ritholtz, etc. side of things. But frankly he’s a pedantic little twirp. “From my perch, I express the variant view that….” ugh.

  16. TakBak04 says:

    @Wes Schott Says:
    November 22nd, 2009 at 8:54 pm

    Tak-

    confessions of an economic hitman – that, john perkins?

    ——-

    yeah..but with Russ Baker…

    I gotta fly……..it’s worth a watch whatever side politically you are on. Good to watch it all…make up one’s own mind…that’s what it’s all about …isn’t it…for thinking people…

  17. bergsten says:

    Last Sunday, it was Ann Rynd bashing (170+ comments). This Sunday, Cramer bashing, but, two hours in, only fifteen comments. Guess Jimbo isn’t the draw he used to be!

    Anyway, here’s my take on JJ (anybody know a. what his middle name is, and b. if he’s Jewish, why does he even have one?):

    1. Cramer. Is. An. Entertainer.

    2. His job is to pull dumb money into the market. I suspect he’s more than exceeded expectations in this regard.

    3. He was far more entertaining when he was throwing heavy things.

    4. The show would be far more entertaining if they hired that “curse and bash stuff” guy (wallstreetpro2?) and had him chase Cramer around the set with a bat, ax, chainsaw, etc.

    5. His ratings are falling off because the showrunners started taking the thing seriously and haven’t implemented points 3 and 4.

    Now, about the Rynd bitch…

  18. Andy T says:

    I actually caught Cramer for the first time in awhile last Thursday and he was recommending SELLING Pulte homes.

    I’ve said this before…he can be like a Carnival Barker at times, but deep down inside, he’s actually a good “trader.”

    He’s more of a chart reader/feeler than anything else…that’s why he can go through so many stocks so fast.

    His biggest downfall is attempting to answer sooo many requests. Everyone remembers the loser picks and not the winning picks and as far as I can tell. Also, he has never offered “weightings” to his picks…Some of his picks would have more meaning than others to him, and he would admit that in private. But, that would probably be too ‘nuanced’ for the Sheeple.

  19. Andy T says:

    @bergsten.

    Indeed, bashing Libertarians causes a bigger stir always….those “religious” nuts come out of the woodwork to defend their “cause.”

  20. bergsten says:

    James “Joseph” Cramer — isn’t Wiki wonderful?

  21. Andy T says:

    To Rick Ambrose:

    Of course he’s an entertainer….that’s what CNBC is all about.

    Of course Cramer’s picks are no better than an random dart throw. That’s because he’s attempting to pick every stock in the universe on his show.

    Please give us your top 300 stock picks for the next year and we’ll see how it goes for you….

    [We know, we know...that's not how you roll....]

    It’s just that Cramer-bashing is so 2007-2008…..

    You need to get with the program and start bashing Alan Greenspan, the Federal Reserve and laissez-faire economists of all ilk…they are the ones to ridicule….

  22. bergsten says:

    The big comment draw over on ZH is http://www.zerohedge.com/article/deadly-flu-spreads-across-ukraine — which is kind of ironic seeing that ad at the top of the page is “Find Your Ukranian Beauty Today.”

    @AndyT — interesting thought — if Cramer got each and every stock on the market correct, he’d (by definition) do no better than the market average.

  23. Rick Ambrose says:

    Dear Andy T:

    Have I got some natural gas stocks for you!

  24. Pat G. says:

    Not to change the subject but when I saw metals up 1.5% in Asian trading, I wondered why and got this WTF headline from Bloomberg:

    “Dollar Falls on Speculation Fed Will Maintain Stimulus Measures”. Really??? Go figure. Here’s the link.

    http://www.bloomberg.com/apps/news?pid=20602081&sid=aYkgqXKhwTX0

  25. Onlooker from Troy says:

    “This Sunday, Cramer bashing, but, two hours in, only fifteen comments. Guess Jimbo isn’t the draw he used to be!”
    and
    “It’s just that Cramer-bashing is so 2007-2008…..”

    Yeah, it’s just a bit tired already. It’s been done so many times that you can’t even get excited about revealing him as a WS shill, again. His star will fizzle well before this thing is over. Hope he’s saving his money.

  26. Onlooker from Troy says:

    Pat G.

    Yeah, that’s some real news, eh? Geeeesshh

  27. Andy T says:

    Rick Ambrose:

    Whatch’a got? I’m all ears….

  28. Pat G. says:

    @ Onlooker

    I guess that passes as “news” these days…

  29. Don’t forget Cramer’s growth stock of the year in 2007: NYX. At the time it was $95 (Friday it was under $26).

    Cramer also recently encouraged viewers to buy major malotov cocktails such as YRCW:

    http://wallstcheatsheet.com/breaking-news/cramer-you-can-ride-with-yrc-worldwide-if-you-want-to-go-to-hades/?p=3332/

    and CIT (yes, he recommended a company on the verge of Ch. 11):

    http://wallstcheatsheet.com/breaking-news/cramer-buy-recommendation-cit-goes-bankrupt/?p=3228/

    Madoff investors and long-time Cramer fans should start a club …

  30. Andy T says:

    @bergsten: Yes. You hit on a good point…especially for those of the ‘buy only’ frame of reference.

  31. ddrich says:

    Gee … I guess I’m lonely in this thread, but I’ve made quite a bit of Mad Money off Cramer. True, I’ll short quite a few of his excited pumps for a day trade, but I’ve stuck by his quite often stated premise of develop your own market view, know what your buying, do your homework every week, own no more stocks than you can devote time to , and sell if the market view or fundamentals change. It has been good advice for me.

    His sheer volume of picks would bankrupt anyone that is such a lemming that they would blindly buy whatever is toted on the Tube. That volume has been a good marker for rotations for me. Unlike any other “guest” I see on Financial TV, he lays out some semblance of specifics for a thesis that you are free to take or leave and not just talk their book based on some unfounded, fact-free political/financial clap-trap. Most of what I hear on his show, I ignore because it doesn’t fit my model but I’ve found it very useful to track.

  32. TakBak04 says:

    @# Andy T Says:
    November 22nd, 2009 at 10:32 pm

    @bergsten: Yes. You hit on a good point…especially for those of the ‘buy only’ frame of reference.
    # ddrich Says:
    November 22nd, 2009 at 10:38 pm

    Gee … I guess I’m lonely in this thread, but I’ve made quite a bit of Mad Money off Cramer. True, I’ll short quite a few of his excited pumps for a day trade, but I’ve stuck by his quite often stated premise of develop your own market view, know what your buying, do your homework every week, own no more stocks than you can devote time to , and sell if the market view or fundamentals change. It has been good advice for me.

    ————-

    Traders like Andy T…might find him worthwhile…and “ddrich” might read enough he can put Cramer in perspective.

    I would put out there that Cramer (for the most part) is someone “contrarian investors” should watch. Whatever he pumps watch out for and buy or sell a couple of days after he recommends or disses it. Occasionally he throws out a “teaser winner” just to keep his audience tuned in.

    Is he a “Blind Squirrel”…finding that nut….or an amazing charletan whose think in with “GS” the GREAT MANIPULATOR..(according to “Zero Hedge” and others)…and part of the “PPT?”

    They guy is brilliant, if you read his bio. I’d suspect he has very influential friends and has his job because of what he’s able to do from his “revival tent” throwing chickens and punching buzzers with sounds like a 2 year old with too many toys.

    He’s very clever. I can see why Traders would view him more favorably than “fundamental stock buyers.”

    Yeah…I know…Fundamentals are dead……but, still… you can make some money off “dividend stocks.” :D

  33. Steve Barry says:

    Bashing Cramer is not tired, if you provide a fresh slant…for example, has any caller ever trashed Cramer on the show? I’ve never heard it. This begs the question…to what extent are callers screened or are plants? If they aren’t, then the show is certainly on a delay. If it is on delay, how does that work, since Cramer’s utterance of a stock can pop it in after-hours.

  34. hue says:

    well, I have a lot of respect for Cramer, I learned a lot from him about Wall Street and Internet stocks at the Street.com and RealMoney during the Nasdaq mania. Some of the stuff was great, like shorting net stocks exactly six months at the end of the the lock up period, when insiders can cash in.

    I just learned about Cramer being bipolar from Todd Harrison, who saw it first hand when Todd was the head trader at Cramer’s hedge fund. Of course Mad Money is just entertainment, and Cramer makes a cartoon of himself. There is a lot more to him. Cramer always said to do your own homework, not just solely listen to him while he barks at your to listen to him.

  35. S Brennan says:

    Funny BR,

    Thanks for the chuckle…but it’s sad when people don’t understand that folks aren’t laughing with them but at them.

  36. torrie-amos says:

    agree with Andy T, I actually think his big directional calls are pretty good overall, sectors he’s usually fairly good, individual stocks not so much

  37. bergsten says:

    @Steve Barry — I wondered about these things too.

    Years ago, when Mad Money was first on, my wife decided to call in “just for the fun of it.” Here’s how “I” remember it working…

    She called some 800 number, which connected to an automated system that asked for her name and number. She was called back (I believe) the next day by a very nice, female human. The very nice female human told her to call a second number at a certain time (we’ll get to that in a moment). The queue is over subscripted (since some people are likely to forget or otherwise flake out), so she was told to call in “right away” — there were a fixed number of call waiting slots (100?), and a fixed amount of air time. BTW, I don’t believe they change that “second number”…

    When she DID call in, she got a second automated thingy telling her to wait, and reading her the riot act (promise not to trade any stock discussed or discuss the call before airtime, etc.). A half hour or so later, a(nother) very nice human got on the phone, said she’d be on the air in minutes, and asked her which stock she was interested in (parenthetically, she panicked, because, as this was for “fun” she hadn’t even picked one!). She just grabbed at some symbol or another. She was put back on hold. Moments later, she got to “talk to the big man” — if you can call about four seconds “talking.” After that, the call just disconnected (“bring them in in a limousine, send them home in a taxi”).

    The show is, in fact taped. It is (or at least “was”) taped somewhere around 4:30 eastern time, after market close, but before “after-hours” close –then first broadcast three hours later (allowing for editing, music inserts, etc.) when the entire market is closed.

    So in answer to two of your questions, it is taped ahead of the first broadcast, and wackos (at least, the bad kind) can be deleted, even if they somehow manage to get through. The phone-in-staff ask what stock you want to know about, so (one would imagine) they have the time to put the charts, summary, industry/segment info, etc. up on one of Cramer’s screens (since the show is edited, graphics can be added later) — I believe he doesn’t know which stocks are asked about ahead of time, but I bet there is lots of info displayed at the time, and probably a few seconds before and during each call (the “banter” before asking “what stock do you want” gives him time to think — you will also note he’s typing on his terminal while “socializing”, probably trolling for specific info). I would also imagine they have to edit out duplicate requests — can’t have 100 people asking about the same stock.

    I don’t know, but suspect that some calls are plants — it seems too coincidental that individual callers ask something specific about the very topics Cramer talks about in the other “acts” (and, in case there’s anyone left who doubts that this is entertainment, ALL TV segments (the stuff between the commercials) are called “acts’).

    So, that’s what my wife did.

    Here’s what “I” did…

    I went in and checked out the tape to see what the stocks that Cramer profiled did. I checked it at the time the show was recorded, not broadcast. What I found was that the stocks volumes went up almost exactly in sync with the recording (recording isn’t necessarily minute-for-minute in sync with a broadcast, and not necessarily even recorded in order). It seemed, somebody was buying the picks ahead of time to sell to the dupes!. If true, I figured it was somebody on the crew calling someone else with a cell phone or some such. We’re talking hundreds of thousands of shares, sold back the next morning after the feeding frenzy (if any).

    This, remember was years ago, and I only checked a handful of days. Nevertheless, if I needed any additional evidence that the thing was rigged, this was it for me. It also proved to me that you couldn’t “game” the show unless you were on-set.

    Booyah!