There are cartoon characters bigger than life.
Then there are media circus clowns who think they are bigger than life but nothing more than cartoon characters.
Jim Cramer on CNBC fits the latter. While I might be a nobody blogger with a small following, that con artist has been portraying himself as a “man of the people” for decades now.
The classic everyone refers to is the Bear Stearns call on March 11, 2008:
A quick summary of what Jim Cramer said for mobile users trapped on slow connections:
Peter writes, “Should I be worried about Bear Stearns in terms of liquidity and get my money out of there?”
No! No! No!
Bear Stearns is fine. Do not take your money out. If there’s one takeaway, Bear Stearns is not in trouble. I mean, if anything, they’re more likely to be taken over. Don’t move your money from Bear. That’s just being silly. Don’t be silly.
The emphasis is mine because his hysteria in that video is repeated throughout his career but more importantly, it was a major market indicator that the bear market was about to careen out of control, along with the economy. And as “they” say, the rest is history.
Recently the permabulls have been smothering the financial bubblevision networks to proclaim that this is another TINA, BTFD, once in a lifetime opportunity.
Just like they did in 2008.
Senor Cramer is no different. On March 25th he proclaimed the “bear market is over” remember? Here it is:
Hilariously, since he said that, the S&P 500 said “nyet” we are selling:
As I said when I posted the screen shot of this huckster in a recent market commentary, we were just completing Wave 1 of the big bear market and the real bear has yet to hit. In fact as a follow up to that commentary, in my opinion the start of Wave 2 down is under way as reflected in this NASDAQ Composite chart of the 2007-2009 bear market action:
Needless to say Cramer is early this time because his famous Bear Stearns commentary happened around the Bounce 2 up portion in 2008, but then faded quickly, much like I think the marker he put down last night:
So based on no reasonable analysis, he’s assuming that everything will be wonderful and even if the average investor takes 90% losses, hang in there so he can sell at a profit.
That’s the real translation of him and every other Wall Street huckster on television in 2000, 2008, and now 2022. Fox Business is even worse so don’t even waste your time thinking that a bear market even exists if you watch that channel.
The reality is some where in between. Those of us that are eternal skeptics wish to point out that there are glaring differences between now and 2008:
- We did not have global food shortages, wars, and discontent breaking out across the globe.
- The United States did not have over $40 trillion (not the $30 trillion published) in government debt (you seriously don’t think the Fed is paying that $10 trillion they created back, do you?).
- There were not manufacturing problems and shortages due to the breakdown of the global supply chain.
- Globalism was not disintegrating into a multi-polar new order with East vs. West taking on new meaning.
- The United States was never as divided as it is now; almost to the point of internal regional conflict.
- Interdependence on enemy nations may well result in even worse shortages as global conflicts arise. Russia is just a small taste, think about the Chinese cutting off all exports to the US and let me know how “bullish” that is.
- Real Estate has not collapsed; yet.
- The auto industry did not completely collapse until the end of 2008. It is in a slow motion train wreck right before our eyes now with plants shuttering production for weeks at a time due to supply chain problems.
- Employee shortages will self-correct this time with permanent layoffs far worse than 2008 as demand implodes due to perpetual high inflation and higher interest rates.
- Political leadership from both political elitist parties is even more incompetent than the era of George W. Bush with Pelosi leading the House. Now it’s an even more vile with Senile Joe and an even more intoxicated Vodka Nancy acting(maybe not acting) half crazy and flaunting the corruption of the political elites in our face.
Buckle up ladies. Jim Cramer might have done the wise thing for everyone by warning that the next leg down in our economy and markets might just be underway. And this time, yeah, it’s a lot different.