On Monday, we referenced the bet between Jim Cramer and Eric Bolling.
Today’s NYPost runs with the story: "
‘MAD’ JIM CRAMER LOSES GOLDEN $50K BET"
"Should stock jockey Jim Cramer be locked up for aiding and abetting the subprime market meltdown? The host of CNBC’s "Mad Money" now owes $50,000 after losing one of the worst wagers of his entire career to rival trading wiz Eric Bolling.
Cramer, who favors the phrase "Boo Ya," made an on-air bet with Bolling about a year ago that financial services would be the hottest sector of 2007. Bolling, a former trader at the New York Mercantile Exchange, placed his money on oil and gold.
Investors who took Cramer’s advice would have taken a 30 percent hit to their portfolios as the stocks of financial titans such as Citigroup and Merrill Lynch got hammered by the mortgage crisis. On the other hand, investors savvy enough to follow Bolling’s bet on gold and oil would have hit the jackpot, as the hot commodities jumped over 60 percent in the same period.
Cramer, through a spokesman, blamed his loss on Federal Reserve Chairman Ben Bernanke’s failure to cut interest rates more aggressively. "The bet turned on Jim Cramer emphatically calling for the Fed to ease rates. The Fed didn’t follow Jim’s advice, and as a result he’ll be happy to write a check to the charity of Eric’s choice," a spokesman said.
I frequently disagree with Jim about many things, and call him out when he is wrong (and we was wildly, insanely wrong rec’ing Financials in 2007). However, to suggest Cramer is in anyway responsible for the sub-prime meltdown is patently absurd.
And, to give credit where its due, Cramer handled the loss like a gentleman, making good on the bet.
I guess this just means the NYPost is, well, the NYPost . . .
‘MAD’ JIM CRAMER LOSES GOLDEN $50K BET
January 18, 2008
Category: Financial Press
Get used to hearing that phrase: Counter-Party Risk. You will be hearing a lot of it in the coming year. Its one of the reasons I disagree with my friend Doug Kass about any bottom in Financials. Consider this small concern: Given the enormous amount of hedging that was done by Investment Banks (Merrill, Morgan…Read More