Cramer is an idiot 99% of the time. If you watch his show, then you probably cannot answer this, but why is Cramer wrong? It's no coincidence anytime Obama speaks on the economy or releases a plan for recovery, the markets tank.
maybe it happened because the GDP declined on an annualized basis of 6% the last quarter of last year, an unprecedented number and we just got that news friday. maybe its because that banks that almost collasped in September haven't been able to be saved in 5 months. maybe its because the world's largest insure is still bleeding cash from deregulated transactions over the last five years. maybe jsust maybe those bits of news have something to do with it. i love this revisionist history that the markets just started tanking when obama released his budget, i guess all you rip van wincle's just woke up from July 07.
I cannot remember a day the market went up on a day when he was talking about the economy. That is no coincidence. Everything gets priced in as the news comes out. He has not come out with a real plan yet. Obama keeps speaking in the most negative tone about our dire situation and that doesn't bode well for confidence at all. Geithner seems content in giving little tidbits of information that is never clear. They struck a really mind boggling deal with AIG today in which we as taxpayers will no longer be guaranteed a dividend for giving them money. Seriously? Bring a freakin' plan out. It looks like they are just keeping the patient alive with no exit strategy. We actually had some good news today about consumer spending, but that had little to no effect. Obama is not the main problem here, but whatever he is doing is not working. Something needs to change. Show us the way out, something definitive.
It's not just Cramer that's attacking Obama, and it's not just Obama they're attacking. It's the entire administration. But then people have been attacking Paulson and the Bush administration, too. They were/are all being attacked because nobody seems to have a clue as to how to get us out of this financial collapse. Most of the CNBC staff has turned very "non-pro-this-administration" over the past few weeks as they believe the administration is after the rich and taxing them unfairly. Kudlow nearly blew a gasket last Friday ranting against the administration - they couldn't get him to shut up. lol.
Kudlow's rants are hilarious. It's hard for anyone to shut him up. He does make some good points at times however. All I want to see is some sort of definitive plan. They are too vague when they discuss what they want to do.
I honestly value Cramer's opinion more than Kudlow's. Kudlow is a blithering idiot at times. The market is down 30%, people shooting themselves in the head, scandals, corruption, major 100 year old companies failing, and this numbnut is talking about mustard seeds. The market has gone from 14,000 to 6800 and he's talking mustard seeds. It took him from probably 14,000 to about 8,000 to finally admit there was a recession. lol. He invites guests onto the show and then spends 90% of the time alotted by spewing his own opinions and talking over them. If there's one thing about this downward spiral that's been made apparent, it's that nobody on those shows knows what they're talking about with the exception of maybe Meredith Whitney and possibly Joe Battipaglia. lol.
I think part of the problem is that everybody that is in the market now is trading more than investing and following markets like a ouija board. This isn't going to get fixed overnight or with one grand speech or even the announcement of a plan because people will just sell the rally on that news.
Yeah, I definitely agree. It seems as if pretty much all sense of fundamentals have been thrown out the window. I just feel that the administration isn't really paying attention to the bloodshed in the market right now. I think they need to acknowledge it a bit more. People's retirement and savings are getting wiped out. No speech is going to solve this mess, but Obama's doom and gloom talk does not help confidence, and I think confidence needs to be boosted. That is something they can have an immediate effect on. It can't hurt, right?
I think the confidence people speak of is more tangible than anything a speech can fix long-term. Obama shouldn't be catering to the market - I mean seriously, look at the swings that happen with every word that's spoken and how all the talking heads on Bloomberg and CNBC try to nail a reason onto why the swing happened. Most of these intra-day swings can't be explained by any news, and even if they could be explained by news, what is Obama expected to do - everytime "the market" decides to tank, he come out there and wave the "we're ok" flag? The market is its own nutty manifestation run by people using automated trading techniques and patterns. Fix the economy and their ouija boards will magically become fixed. The economy has no reason to be doing well, therefore the market has no reason to be doing well... it's going down because it has to, and there's not going to be much Obama can do about that short-term. People aren't going to come back into this market long-term until the credit markets are fixed, financials are "fixed", and earnings are fixed. No speech will do that - only time and long-term policy will.
I didn't think there was any chance we get to 6000, but the way its looking it might crack 6k. Either people are shorting and selling all the rallies.
I think you and DoD are both right. I think this all started with the dot com boom. People were not paying attention to the individual companies they were investing in and more on the swings of the market. That carried over to all sectors and most things kept going up. Now it is the same thing in reverse.
