Jim Cramer flips out on a CNBC interview and starts yelling about how bad things are for the fixed income market right now. He starts of easy enough with choice bits like
Bernake needs to open the discount window. That’s how bad things are out there. Bernake needs to focus on this.
and
Bernake is being an academic. It is no time to be an academic.
and then completely loses it and screams:
HE HAS NO IDEA OF HOW BAD IT IS OUT THERE! HE HAS NO IDEA! HE HAS NO IDEA! I HAVE TALKED TO THE HEADS OF EVERY SINGLE ONE OF THESE FIRMS IN THE LAST 72 HOURS AND HE HAS NO IDEA OF WHAT IT’S LIKE OUT THERE! NONE! AND BILL POOLE HAS NO IDEA OF WHAT IT’S LIKE OUT THERE! MY PEOPLE HAVE BEEN ON THE BUSINESS FOR 25 YEARS AND THEY ARE LOSING THEIR JOBS AND THESE FIRMS ARE GONNA GO OUT OF BUSINESS AND HE’S NUTS! THEY’RE NUTS! THEY KNOW NOTHING!
Funny thing is that he’s advocating not a reasonable economy but for the Fed to show up and bail out the financial institutions like Bear Stearns that have gone way over their heads and stand to loose big in the current subprime mortgage meltdown.
Found via BoingBoing.
A good comment on this is here.
“To summarize, some of Cramer’s wealthy friends are losing their jobs because too many bad loans were made during the good times, and the Fed is now expected to bail everyone out. Sound about right?”
I loved it when Cramer ranted that “you can’t get a loan if you’re rich like me”. It seemed to me that the explosion was just too much for simply his inability to get a loan or his friends busting out. I wonder how much he personally has tied up in institutions or funds that are looking like they’ll go up in flames.
Thanks for the heads up on the article- it’s a good description of the current situation, specially on the front of why the Fed won’t necessarily ride in to the rescue just because Cramer has a meltdown.
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