Fox news against CNBC’s choice in calling Jim Cramer their Financial Guru
12 October 2008
Fox News all but wages war on CNBC commentator Jim Cramer in their latest ad which focuses on bad advice regarding Wachovia that Cramer apologized for and his dire warnings about the market on the Today show earlier this week.
"The last thing you need is bad advice. The last thing you need is CNBC's Jim Cramer," warns the ad.
The promos are running on FBN and FNC, as well as through local avails on CNBC in many of the biggest markets (including New York, Chicago and Los Angeles). The print ads ran in the New York Times and Wall St. Journal today, in the National section.
A CNBC spokesperson tells TVNewser: "CNBC has the most affluent and educated audience on TV and they are not easily fooled by publicity stunts. Jim Cramer is one of the most knowledgeable and insightful market commentators in business news today. Given that 'Mad Money w/ Jim Cramer' has more viewers than all of FBN's shows combined, the business and investment community clearly agrees."
An FBN spokesperson responds, telling TVNewser, "We'll let the words of the investment community speak for themselves," pointing to this post from Seeking Alpha ("Very irresponsible. Financial suicide. Cramer should be suspended") and this on InvestmentNews.com ("Mr. Cramer is a 'fear monger'"). Jason Schwarz of Lone Peak Asset Management asserted on Friday that "financial advisors across the nation have been trying to clean up the mess that Jim Cramer made. We had clients crying because of the panic he created."
Jim Cramer is not without history with Fox Broadcasting. In 2000, Cramer settled a lawsuit with Fox News Channel in which Fox had claimed Cramer reneged on a deal to produce a show for them. Their conflict began when Fox complained that Cramer promoted TheStreet.com's stock on the air
Last year, Cramer lashed out at the Post for reporting a clip of his leaning toward favoring short selling, as well as its parent company, News Corporation, which also owns Fox News. “I think most of the discipline is coming from organizations that have kind of an edge against maybe CNBC, maybe of the FOX venue, the “New York Post venue,” he said. “It’s almost as if they’re about to launch their own business channel.” Fox has a news business-news cable channel in the works.
Said a website feedback: Jim Cramer was begging people to buy Wachovia when it was at $10, and it promptly fell to $1. The next day, he was on giving his opinion about other individual stocks. See other Fx news and Jim Cramer reader opinion here.
Based on my research, Cramer has already called 2 bottoms lately
Jim Cramer Calls a Bottom in Housing - HERE'S THE TRUTH (August 27, 2008)
Jim Cramer Called "The Bottom"? 1 Out of 10 Ain't Bad! (July 30, 2008)
http://bigpicture.typepad.com/comments/2008/09'/cramer-calls-ye.html
in fact, they say This is the third bottom Cramer has called in 4 months.
Jim Cramer was right recently
Cramer's most recent call was right, however: According to latimesblogs, Cramer last Monday (Oct. 6) went on NBC's "Today" show and gave this advice to viewers:
"Whatever money you may need for the next five years, please take it out of the stock market. Right now. This week. I do not believe that you should risk those assets in the stock market."
He warned that the market could tumble another 20% because of fallout from the credit crunch.
The Dow Jones industrials fell as much as 800 points later that day, and closed with a loss of 369.88 points, or 3.6%, at 9,955.50.
The sell-off continued the rest of the week, leaving the Dow at 8,451 on Friday.
People tend to over criticize.
People love to throw tomatoes at a very loud obnoxious man, that is why Cramer is getting all this flak right now. Below are some other "wrong Cramer calls" gathered from the web (some sourced from wiki):
Cramer'S RESUME (In March 2007 subprime was big headlines due to New Century, Fremont, NovaStar etc failing. Everyone was calling it ‘contained’ and the losses would not go past a few non-bank greedy mortgage lenders) MARCH 06, 2007 - The financials are bottoming now.
On the March 11, 2008, episode of Cramer's show Mad Money, a viewer named Peter submitted the question "Should I be worried about Bear Stearns in terms of liquidity and get my money out of there?" Cramer responded "No, no, no! Bear Stearns is fine! Do not take your money out. If there's one takeaway…Bear Stearns is not in trouble. If anything, they're more likely to be taken over. Don't move your money from Bear! That's just being silly.
In May 2008, a review by CXO Advisory showed that Cramer's stock picks have done worse than the market averages.
On January 22, 2008, Jim Cramer was confronted by Rick Santelli on CNBC for Cramer's bullish perspective over the preceding several months and how this contradicted Cramer's recent forecasting of a bear market (after significant market drops) and "how things were incredibly dangerous
In August 2007, Cramer called for the Federal Reserve to support hedge funds that were losing money in the subprime mortgage crisis, prompting Martin Wolf, the chief economics commentator for the Financial Times, to accuse Cramer of advocating an offensive and catastrophic "socialism for capitalists".
MAY 11, 2007 - The worst is baked into the retail stocks
June 13, 2007 - Fed easing is off the table. The market has hit bottom and is ready to roll again.
JULY 05, 2007 - Negative rumors may continue but it’s important that you stay strong. The bears will continue to be wrong. Still see the Dow going to 14,548 this year. This is the season to be in technology
JULY 09, 2007 - We are in a dramatic, runaway bull market. Stocks that go to 80 tend to go to 120. Tech, cable & telecom will work. Oil goes to the mid 80’s.
JULY 10, 2007 - Even with the selloff, minerals are in total bull market mode.
JULY 13, 2007 - The move in tech is for real. Am begging you to buy tech!
JULY 25, 2007 - Over the next few months there’s just a huge amount of money to be made owning the technology stocks. Now’s the time (USE KEYWORD “HORSEMEN” TO SEE Cramer's FAVORITE TECH STOCKS). The refiners’ margins are being squeezed
JULY 26, 2007 - The selling today was pure fear - but 500 points on the Dow may not be enough. Would sell anything mortgage or corporate credit related.
JULY 27, 2007 - The banks, brokers and homebuilders look cheap but the earnings estimates are too high and will be slashed. We want to buy stocks of companies that have just beat the numbers and have taken damage in the sell-off.
JULY 30, 2007 - The market will go up again tomorrow as the institutions buy stocks at the end of the quarter to make their performance look better.
JULY 31, 2007 - The worst case scenario keeps playing out - you have to sell the financials on any strength.
AUGUST 02, 2007 - The Dow is going up when it should be going down.
AUGUST 03, 2007 - The markets will stabilize. Until then, preservation of capital is a priority. Want you to stay in the game.
In April 2007, Credit Bubble Stocks criticized Cramer because of a speech he gave on February 29, 2000, at the height of the dot-com bubble, recommending a number of speculative stocks that ultimately fell in value substantially with some even becoming worthless.
In March 2007, Joseph Parnes, a noted short seller featured in Barron's, refuted positions by Cramer on CNBC, and has shown to his audience in his publication, Shortex, that using positions contrary to Cramer's recommendations is actually more advantageous.
- In February 2000, Cramer proclaimed that Internet-related companies "are the only ones worth owning right now." These "winners of the new world," as he called them, "are the only ones that are going higher consistently in good days and bad".
- In February 2007, Henry Blodget — himself indicted for civil securities fraud in 2002 and banned for life from the securities industry — criticized Cramer for overstating his abilities as a market forecaster, noting that in 2006 Cramer's suggested portfolio lost money "despite nearly every major equity market on earth being up between about 15 percent and 30 percent."
Personal Opinion
On a personal note, I grant some large leeway, personal respect and objectivity when some media personality, local or otherwise, give their forecast. It's a forecast, it's their intelligent guess as to where the markets are headed, and their bravado to call this in public merits some kind of respect in my book. But arrogant people like Jim Cramer who even ridicules others against his views and makes such a big deal about how right his calls are belongs at the bottom of the pile.
See fellow Financemanila members, there's bashing in the good old u.s. of a as well when opinions differ, and everyone wants to bash an obnoxious loudmouth. Everyone with an opinion should keep it real, keep it simple, and readers should just keep an open mind and respect other fair balanced talkers.
This CNBC Cramer versus fox just proves for me that entertainment sensationalism should not be mixed with stock market coverage than can affect real life portfolios.
We leave this article with 2 of Anti Cramer Don Harold's youtube videos
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