So the Bear Stearns collapse has been all over the news. But a slightly amusing side line is the Jim Cramer angle. Cramer as you probably know has a stock show on cable called "Mad Money". Its sort of like Wall Street Week meets Emeril but with more of the "Bammm!" and less of the analysis. Needless to say he is pretty popular. I think both Cramer and Emeril are very overrated.
So last week (March 11) Jim Cramer states that Bear is fine - no need to pull your money out....http://www.youtube.com/watch?v=gUkbdjetlY8. At that point the price was at about $60. Then by Friday the stock had collapsed to basically $2.
By this week, he's catching some heat for his comments. See the video here on financeprofessor's blog.
Ahhhh, but does Jim fess up and admit his mistake? Nooooo!!!
In a brilliant use of double meaning, he states that when he was asked "should I pull my money out of Bear?" his answer was referring to whether someone should remove their money from Bear's investment products, not Bear's stock. This is despite the fact that he posted a chart of Bear's stock on the screen.
Given that he had about 3 days to contact this answer I think he did pretty well. This must also mark the first time (on 3/11) that he gave advice about investing in an investment bank's investment products and not the bank itself.
Great stuff Jim. But perhaps you should consider a career in cooking.
Thanks to FinanceProfessor for the original link