Don't get me wrong, I like Jim Cramer. He's been around a long time. seen a lot of markets and knows many players. But, to make a comparison to 1929 is over the top. For years, pushed by a over-accommodative Fed, Cramer's friends and others plowed billions in to markets and strategies without very little concern for risk. Now, the chickens are coming home to roost and Cramer expects the Fed to ease to bail these people and companies out under the guise of helping out the overburdened homeowner (some were duped, most just overextended themselves). This is healthy repricing. This is capitalism. There is risk. You can lose money. For now, the days of easy money are over. The quants and hedge fund crowd will have to work for a living. It's good for them and good for the economy.
By the way, the Fed's add was a technical one. With funds at 6% and the target at 5.25%, the Fed had no other choice. To paraphrase Kevin Bacon's character from Animal House, "Don't panic, remain calm, all will be well".
2 comments:
Hello,
if you know Cramer over time he always turns into a big wimp when we get any serious market turbulence
you're right. his former co-host was on today almost as panicked as cramer was. If the stock market goes down 25% or more, then I'll be concerned. For now, I need to figure out something to do with my cash now that bills have dropped so much
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