Thursday, January 28, 2010

Why You Can't Take Jim Cramer Seriously

Although in the past, Cramer has strongly criticized Federal Reserve Chairman Ben Bernanke, Cramer now tells us that he thinks the Fed Charmian is doing "everything right." Confident in this, Cramer said Bernanke will not let us slip back into a recession (although he is). Cramer points out that Bernanke is a well-versed student of the great depression. Hey so was commie, John Kenneth Galbraith.

Cramer also neglected to point out the roller coaster ride Bernanke has put us on with double digit annualized money growth from September 2008 to February 2009, followed by a near complete halt to money printing since then. Nothing wrong with stable, zero money growth, but I doubt Cramer or Bernanke would agree with me on that. My guess is that they both think the Fed is being accommodate because interest rates are low. Of course, when the effective Fed funds rate is above the T-bill rate, the Fed is anything but accomodative.

Cramer also thinks Tim Geithner is doing a good job, saying that he's impressed by what the Treasury Secretary has done. He neglects to mention that Geithner serves Goldman Sachs first, second and always.

And Cramer hasn't mentioned lately that he worked for Goldman Sachs.

1 comment:

  1. Good perspective on Cramer. Your last sentence says it all.