Jim Cramer or Jon Stewart: Who’s Right?
Buyer Beware. Most everyone understands that concept. But for some reason, this idea doesn’t always translate to investing in the stock market. We have to ask: who is to blame? Jim Cramer, or ourselves for not being educated enough on the market to make our own decisions.
Jim Cramer was very clear during his interview with Jon Stewart, offering a mea culpa even though for most it was too late. CNBC’s Mad Money is designed to attract the casual trader and it is one of the few financial programs that can be enjoyed by people from all backgrounds. That is why Jon Stewart was right when he emphasized the importance of Cramer taking responsibility for his actions when he, for example, told people not to sell Bear Stearns stock days before the bank failed.
But the public can’t go on a witch hunt for who is to blame for all their financial problems. True, we trust news organizations and “experts” to give us tips and advice on ways to invest our money. Does that mean though that we take everything at face value without doing some due dillegence ourselves? Of course not.
Even though the stock market does not have a warning label on it, it is the everyone’s responsibility to realize that they can’t jump off the Wall Street bridge just because everyone else just did. Take responsibility for what you do with YOUR MONEY. Know the market, learn how it works so you don’t have to look for someone to blame because you made your own choices.
I look forward to hearing your opinion in this matter.
- Posted in : Community
- Author :ROlson
Comments»
Jim Cramer’s show does a great service to society: it gets the casual TV viewer interested in the stock market. Only a fool would take everything he says as God’s truth and rush off to invest without doing their own thorough research. Also, Jon complained about people playing with the lives of others who are dependent on their 401K plans. Well, you should understand when you invest in a 401K that it is still a gamble. A gamble that is usually improved by an increased number of people investing; however, you don’t have to gamble with a 401K. You can instead invest in fixed rate CD’s or savings accounts; thus, Jon Stewart doesn’t have a leg on which to stand. You are responsible for your own money, and the market gives you a variety of opportunities depending on your willingness to accept risk.
Most “casual” investors, are putting money that matters to them into the market. They know it’s risky. Stating that it’s risky does not insulate these traders and market predictors from blame, derision or ridicule.
These talking heads on T.V. are not stupid, well, some anyway. They weren’t completely blindsided by this unless they WERE stupid or so caught up in the money and headlines being made, that they lost sight of the forest for the trees.
To hear ANYONE argue that most of these guys weren’t able to give the public a heads up because they were as in the dark as everyone else is ridiculous.
I was one who pulled my money out MONTHS before the crap hit the fan, mainly because I knew people who were talking about the ridiculousness of the market and these sub prime loans. They weren’t prescient or financial wizards. They were regular people using their brain, and they were coming to the correct conclusion with far less information than Cramer and others in his profession.
Yes some people were in over their heads, but the financial newspeople of the media did the same thing they did with the Iraq war: they stoped asking questions, and took whatever the powers that be said at face value. They jumped on the bandwagon because it was easier, and it was the fastest moving vehicle at the time. They didn’t care if it had no brakes and was heading for a cliff.
When will we start taking responsibility for personal finance. People but there own money in hoping to make a profit, but now it seems that if people don’t make a profit they need to find someone to blame. If we are going to trade or invest OUR MONEY with out doing our homework don’t complain. Will you complain when you leave the casino after losing that you didn’t know how the games worked. We have listened to “advisors” but never check there back ground, we take a tip but never check out the company just the symbol and the price. Things were not going to go up forever. Each individual needs to take responsibility for there personal finances.
I agree that we need to do our own homework, but when Cramer INSISTS over and over again, night after night that a particular stock is absolutely great, chances are some people are going to believe him. Perfect example, Fortune Brands (FO). He kept on saying that it was a great play and then it took a huge crap. He apologized, so I guess that’s ok, right? Not right. He is in the trenches every day, so one would think he knows what is going on….forget Cramer, watch the person who’s winning Wall Street Survivor!
Stewart vs. Cramer was not about “buyer beware” as much as it was about people like Cramer obscuring information about the markets they were covering. Cramer does double duty here, because he didn’t hide information from experienced traders. He hid information from novices. Many, many people have been told they should be investing in the stock market. Who should you trust to help? It seemed foolish to me to trust Cramer but CNBC appeared to.
Sure, there are snake oil salesmen that will prey on the weak for a dollar, but a supposedly trustworthy news channel shouldn’t be one of them.
Investors should be more careful, but this is an instance where CNBC, a logical source of information, wasn’t doing its job. They need to be called out on it.
If Jim Cramer has done anything, it is to promote doing research on any particular stock. The only thing that is 100% foolproof is hindsight, which Jon Stewart has the benefit of. If you are to look at Jim Cramer’s losses, which he gracefully said he was wrong on Bear Stearns, look at the tremendous gains that people have had using his stock tips. You will see that his gains outweigh the losses. And THAT’S what we like about him. Booya to you Jim.
I thought Jon Stewart was the bomb and he blew the pants right out from Jim aka liar Cramer. I wonder if Jim Cramer lost any money in bear sterns? Or did he sell before they went under? I bet nobody knows that? What was in it for Jim Cramer to lie about the stocks im sure there was something. Jim Cramer is a pure joke and i always laugh at him and turn the channal now i will delete the channel off my remote. If anybody says he didn’t lie you need to get your head out of the sand becuase on the internet they played the whole interview and everytime he lied Stewart would pull up the video and play it back.
Stewart vs Cramer has gained the resonance it has not because of any individual flaws that Cramer has, but rather because Cramer is a visible symbol of the incredible dishonesty and/or incompetence that wall street and the banking industry have displayed of late. Public confidence, that sine qua non of our economy, has been shaken to its roots by the unbelievably shady way that these so called professionals have behaved. The idea that these folks can do incredibly stupid things, like make bad mortgage loans (doesn’t anybody remember the S&L debacle of the late 80’s? same damn thing, except smaller) and then leverage the bad mortages with derivative investments…destroy the companies they work for, tank the world economy and walk away with a pocket full of money….people are pissed. Cramer just gets paid well to put his face out there as a representative of all this slime and is taking a bunch of heat because of it. Go figure.
Jim Cramer is not to blame!!! But he is the one in fromt of the camera, so in the line of fire sort-of-way, he is in front. I am new to doing my own investing because of his entertaining show, and I have also come to realize that I am the one responsible for “pulling the trigger.” One thing he always emphasizes is buy & homework. I can tell you that this is true. One thing that he has been against from the start is Citigroup. While I bought and continue to watch closley, the stock has already profited 97% on my investment.
I feel John Stewart is upset like everyone else, but what about hedge fund and other money managers who lost as much or more, why doesn’t he have them on his show.
Stewart doesn’t have doesn’t have the “hedge fund and other money managers” on his show because they don’t have the “cujones” to get on the same stage with him. I keep seeing these people on this board and others defending these high profile “money matters” folks, and the financial media, as if, because some people didn’t do their homework we should excuse the aforementioned people for not doing their job. It’s not about investors not doing their homework and paying the price all investors pay when they make a wrong decision, it’s about the watch dog media not doing THIER homework for Christ sake. It’s about the talking heads feeding at the trough of the manipulators while they pretend to be reporting on what’s going on. Period. Does that mean we should be naive and think that isn’t going to happen? No, but it doesn’t mean we excuse them for being liars either.
Stewart made an informed, concise, linear, and reasoned argument for why we should be pissed at these financial talking heads and pen pushers of the Dow. Despite all the apologists for the Cramers and the Insana’s and others, most people who observed the exchange between Stewart and Cramer could see Cramers sad silences and “We should have done a better job,” apologies for what they were: A no defense defense.
All…
Let’s not forget that BOTH men are entertainers and “sound bite artists” (it seems to have become the thing that resonates most within our ADD/ADHD culture…
The world of investment finance is predicated on “opinion”, suggesting that there is no right or wrong…simply opinion.
I really do not believe (perhaps naively) that Jim Cramer is a liar…I think that he is sincere in his beliefs and suggestions. I would venture to say that his belief that Lehman would “never” go under was a belief which was widely held on Wall Street. It was the considered “OPINION” of the many “EXPERTS” who made and make their livings by “betting” on such occurrences…and it is precisely this which underscores and highlights the fact that we all must be “oh so careful” when listening to ANY opinion…
yes it is a tuff world out here…!
now, this is a general comment made from a common/ill-knowledged (abt stock market n investments) person’s point of view.
many in this world must be good at study n research – about stocks, companies, market trends et al,, and investments – putting there money in the right place.
many more must be having the enthusiasm to do so.!
but what about a person like me!! it wud take me an eternity n lot more brain-power to even study the basics of the market, n how things work (why, i cudnt even complete reading al the comments of this blog without pullin my hair out). thus, it might not be practical enuf for a person like me to take entire/complete responsibility for WHAT I DO WITH MY MONEY. i simply dont have that ability.
now, ppl may also say, if thats the case, ppl like me aren’t fit to be in this “world of stock market n investments”. but that doesnt mean i also cant invest whatever small amount of money that i save(d) for my future.
There is this thing called ‘hope’ (which has, rather, been misused n abused since day one of human civilization, but nevertheless, there is HOPE), and another called ‘trust’;
our biggest weakness and greatest strength, both.
When a wallstreet bigshot/financial expert/market analyst/mutual fund uh…guy/owner of a company (small or huge) gets in his car in the morning, he unconsciously trusts (or takes-it-for-granted) the other type of people in the world (farmers, engineers, technology experts), n hopes the world keeps running. (sry, cud not express this as i intended to)…
similarly, when i get up in the morning n sit in front of my pc to start computer-coding some IT-project, i wud also lay my trust (or take-for-granted) on ‘the other type of ppl’ to take care of my money (that i actually GAVE them for their company to grow/work/progress)
My bottomline:
its a collective symbiotic effort, u see, for the human race to survive.
it is not wrongly said, that each person is good at certain thing. he/she has that role to play in the right way for his/her n others’ well-being.
i know this comment is not succinct and very general in description (without any complicated real0-time practical factors governing this world) as it should’ve been (i’l try to improve my vocab and knowledge). BUT HOPE EVONE GOT MY POINT.
n also, i wud love to hear what ppl have to say about it. coz i also am in a learning process n want to know more, understand more!
Kris K:
I agree that not everyone can become a stock market expert or financial wizard and that’s what professionals are for. Much in the same way, we all can’t be medical doctors to heal our own ailments or be plumbers to fix our toilets and pipes. At some point, you want to hire a professional for things you can’t do yourself.
However, there are many ways that you can take care of your health without a medical professional through exercise and a good diet. Also, you never want to be 100% dependent on any professional or you will get RIPPED OFF. For example, what if the plumber comes to your home and fixes your toilet and then bills you $1,000? You’re going to say “Whoa!! What’s that for?” because you know (hopefully) that fixing a toilet doesn’t cost that much.
In the same vein, you need to have financial literacy and some knowledge of the stock market if you’re going to invest. You don’t need to become an expert and do all your own stock research, but you need to know how the stock market works, what’s real and what’s a just a bunch of doo-doo that should be in your toilet – not your retirement portfolio!
As my grandfather used to say, “Do what you can for yourself. Then, if you need to hire a professional, keep a close eye on them or you will get professionally robbed.”
Just found this quote and thought it relevant:
“Even in such a time of madness as the late twenties, a great many man in Wall Street remained quite sane. But they also remained very quiet. The sense of responsibility in the financial community for the community as a whole is not small. It is nearly nil. Perhaps this is inherent. In a community where the primary concern is making money, one of the necessary rules is to live and let live. To speak out against madness may be to ruin those who have succumbed to it. So the wise in Wall Street are nearly always silent. The foolish thus have the field to themselves. None rebukes them.”
-Extracts from “The Great Crash: 1929″, John Kenneth Galbraith, First Published 1955, Page 27.
Maywalt said that he was misleading investors; I truly don’t think this was done purposefully. Thousands of people lost money in the current crash, including well versed investors. To hold Cramer to a different standard is, in my opinion, unfair.
Rory mentioned that both Cramer and Stewart were “entertainers”, I disagree with that. Although Cramer uses unusual antics to get his point across his show is on a news channel. The advice he is giving is (I hope) based on an educated and researched opinion. Stewart’s show uses satire to bring political issues to the forefront, a comedian of sort.
I like Cramer’s show and look forward to seeing more of it, I will just make sure to take his opinion with a grain of salt.
The only person is to blame is are selfs for getting involve in the markets. The markets have always been manipulated.
Who’s to blame when this site is down and when you are finally able to access your account you are down 80%. Now I might as well try again next year again. I don’t see the point in bothering now if I only get killed while this site is down. Oh well I guess its time to find something else to do. I blame myself for being foolish enough to believe that these sites are anything but a waiste of time. Goodluck to those who are left.