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[Jim] Cramer: Depression Comparisons are 'Scare Tactics'
Business & Media Institute ^ | 2008-12-02 | Nathan Burchfiel

Posted on 12/02/2008 9:43:23 PM PST by rabscuttle385

CNBC “Mad Money” host Jim Cramer said on NBC’s “Today” show Dec. 2 that comparisons between the current economy and the Great Depression are “scare tactics.” Maybe he forgot about his own reliance on the juxtaposition.

“[T]hat’s got to be taken off the table,” Cramer told “Today” host Meredith Vieira about comparisons to the Great Depression. “There have been enough things done by this government to absolutely preclude that. I, myself, do not want to use that term ever again on the “Today” show even to compare it. Things are very different. We do need help from Europe; we need help from China. But take the Great Depression talk off the table. That is scare tactics.”

(Excerpt) Read more at businessandmedia.org ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: bailout; bho2008; deranged; economy; financialcrisis; jimcramer; mentalinstability; panicof2008; recession; unhinged

1 posted on 12/02/2008 9:43:24 PM PST by rabscuttle385
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The Money, Banking, and Financial Markets Ping List.

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Please tag all relevant threads with the aforementioned keywords.

This can be a very high-volume ping list at times.

Ping list jointly pinged by rabscuttle385 and TigerLikesRooster.

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2 posted on 12/02/2008 9:43:54 PM PST by rabscuttle385 ("If this be treason, then make the most of it!" —Patrick Henry)
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To: PAR35; TigerLikesRooster; bamahead; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; ...
*Ping!*
3 posted on 12/02/2008 9:44:20 PM PST by rabscuttle385 ("If this be treason, then make the most of it!" —Patrick Henry)
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To: rabscuttle385

What “help” is he talking about from foreign nations? Is he talking about international trade? if so, it’s not really “help,” since they benefit from it equally. If he’s talking about something else, what does it mean?


4 posted on 12/02/2008 9:46:12 PM PST by Tublecane
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To: rabscuttle385

do people still watch cramer?


5 posted on 12/02/2008 9:47:06 PM PST by ken21 (people die and you never hear from them again.)
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To: ken21
do people still watch cramer?

Only for mindless entertainment.

6 posted on 12/02/2008 9:47:32 PM PST by rabscuttle385 ("If this be treason, then make the most of it!" —Patrick Henry)
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To: rabscuttle385
Cramer who?
7 posted on 12/02/2008 9:48:21 PM PST by April Lexington (Study the constitution so you know what they are taking away!)
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To: rabscuttle385
All these people that say we are at the worst economic crisis since the Great Depression, conveniently forget the Carter years of malais. We're nowhere near where things were then.

But with current activities, and Obamas plans, we sure will be there in short order.

8 posted on 12/02/2008 9:49:59 PM PST by mountn man (The pleasure you get from life, is equal to the attitude you put into it.)
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To: rabscuttle385

Bear Sterns is FINE!


9 posted on 12/02/2008 9:50:39 PM PST by Nova442 ("Cry Havoc and let slip the Dogs of War.")
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To: All

What was Crazy Cramer saying before the election. Was he one of those people that kept saying this was the worst economy in forty years.


10 posted on 12/02/2008 9:57:40 PM PST by pepperhead (Kennedy's float, Mary Jo's don't!)
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To: rabscuttle385
Cramer can't make statements either way. He doesn't know - nobody does.

Everyone keeps talking about how the Great Depression had unemployment rates of 25%. That's true - but that didn't occur until 1933. The unemployment rate in 1929 was around 7.5% - pretty much where we are currently.

Let's see where unemployment sits four years from now and then compare notes...

11 posted on 12/02/2008 10:02:49 PM PST by politicket (Barack Obama - "Chains we can believe in")
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To: rabscuttle385

Cramer needs a tranquilizer... administered anally.


12 posted on 12/02/2008 10:04:29 PM PST by fieldmarshaldj (~"This is what happens when you find a stranger in the Alps !"~~)
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To: rabscuttle385

My only use for Cramer would be target practice. I mean, a cardboard lifesize picture of course... not the REAL Cramer. Uh, that’s my story, and I’m sticking to it.

The patented James Cramer target. The only good use for him.

If I had a benji for every one of his lies or bad calls, I would own CNBS.


13 posted on 12/02/2008 10:08:36 PM PST by Freedom_Is_Not_Free
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To: rabscuttle385

Wasn’t he recommending people earlier this year to buy into Wachovia, and other companies that soon failed?

Now he’s saying that talking about a depression is scare tactics. Given his track record, that’s scary to me!!


14 posted on 12/02/2008 10:09:23 PM PST by KoRn
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To: mountn man

>>We’re nowhere near where things were then.<<

That is like saying a redwood sapling is not as big as a full grown alder.

Wait until it reaches adulthood...


15 posted on 12/02/2008 10:11:40 PM PST by RobRoy (Islam is a greater threat to the world today than Nazism was in the 1930's.)
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To: rabscuttle385

I agree. Notice when the left gets in; more scare tactics are used.


16 posted on 12/02/2008 10:11:44 PM PST by freekitty (Give me back my conservative vote.)
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To: freekitty

For clarification. I don’t agree with Cramer.


17 posted on 12/02/2008 10:13:02 PM PST by freekitty (Give me back my conservative vote.)
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To: freekitty

Sorry, notice this is like the Clinton years.


18 posted on 12/02/2008 10:13:47 PM PST by freekitty (Give me back my conservative vote.)
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To: freekitty

this guy told people to sell when the market was falling so fast! his motto buy high sell low! this guy is a huge clown!!!!!!!!!


19 posted on 12/02/2008 10:14:02 PM PST by remaxagnt
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To: RobRoy
Choosing to pick and choose what you want to see?

Here is the last part of what I posted

But with current activities, and Obamas plans, we sure will be there in short order.

20 posted on 12/02/2008 10:20:42 PM PST by mountn man (The pleasure you get from life, is equal to the attitude you put into it.)
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To: remaxagnt

Sounds like it.


21 posted on 12/02/2008 10:29:41 PM PST by freekitty (Give me back my conservative vote.)
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To: pepperhead

Prior to the election he was busy wiping up mass economic hysteria; now he can get back to being honest with his viewers - or at least a shade more so.


22 posted on 12/02/2008 10:45:00 PM PST by eclecticEel (In short, I want Obama given the same respect and deference that Democrats have given George Bush)
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To: politicket

The Great Depression was “Great” because unemployment was still at 20% in 1939.

If Obama is intent on bailing out the auto manufacturers and conjuring up a bunch of make-work projects, then we just might repeat the economic performance of the 30s...


23 posted on 12/02/2008 10:51:02 PM PST by oblomov
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To: rabscuttle385
“Today” host Meredith Vieira about comparisons to the Great Depression.

Someone needs to slap this woman. And then, show her some facts and figures(and film) to compare the great depression of the '30's to today. Take her to one of those food chain malls that have 10 restaurant chains in them. They are packed around here. Is meredith really that stupid?

With the price of fuel dropping like it is, this thing will work itself out in 6 months. The biggest problem we have now are the nuts running our government.

24 posted on 12/02/2008 10:56:33 PM PST by Post5203 (The only thing necessary for the triumph of evil is for good men to do nothing)
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To: rabscuttle385

The real reason these idiots are asking for the comparisons to stop is they have succeeded in killing consumer confidence after 8 YEARS of Attacking Bush. Now that Obama is going to be President, they are trying to undo the damage they’ve caused.

Its like pushing a rock down a mountain now, and they are trying to stop it half-way. They’re going to get rolled. They got what they wanted but killed the economy to do it.


25 posted on 12/02/2008 11:12:23 PM PST by packrat35 (To crush your enemies, to see them driven before you, and to hear the lamentation of their women...)
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To: ken21

I’d rather be anal probed than watch that cretin.


26 posted on 12/02/2008 11:13:17 PM PST by packrat35 (To crush your enemies, to see them driven before you, and to hear the lamentation of their women...)
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To: rabscuttle385

The thing is that, while “Great Depression” comparisons are silly in terms of the actual economy RIGHT NOW (the number of banks going under, the jobless rate, etc.), we actually face potential economic bombs that would have made 1930s Americans faint with dread.

$700 TRILLION in derivatives. Subprime loans. Assets leveraged as much as a hundredfold. The result is that MASSIVE debt such as the world has never seen is lurking like some incredibly vicious monster. And any fool should recognize now that it can send the whole economy crashing down very quickly, and (seemingly) from out of nowhere.

None of the bailouts have done ANYTHING to fix the real structural problems with our economic system. And the fact that the $850 billion bailout package went from being used to buy bad mortgages to a completely different solution should kind of serve to tell you that they don’t really know WHAT to do.

We’re now talking about the US government putting itself on the hook for $7.7 trillion in obligations. Compare that to the following programs: the Louisiana Purchase, the Marshall Plan, the costs to get to the moon, the S&L crisis, the Korean War, the Vietnam War, and the entire NASA program all combined costs HALF that much.

And those expenditures took place over a long period of time; whereas this is happening over months. And unlike WWII, where we were spending in order to produce and build, now we are merely paying off what amounts to gambling debts.

Meanwhile - as we contemplate forking over billions to bail out our automakers - we need to realize that we’re entering an insane realm where there’s just no end to the companies and even states who are “too big to fail” and need a bailout of their own. And what of the moral hazard incurred by giving money to people, corporations, and states simply because were the biggest fools and failures? What impact will that have not only on the economy, but on the minds and hearts of honest people who played by the rules and end up with nothing to show for it?

What’s going to happen as our financial system tries to absorb these incredibly debts?

A lot of financial experts aren’t so much worried about what happens in the next months. We might well be able to throw so much money at the economy we can stimulate it again; rather, they are worried about 3-5 years down the road as our dollar devalues dramatically. You don’t just double an already insanely-out-of-control national debt without consequences.

So while it’s wrong to describe our present situation as “Great Depression,” the simple reality is that we might well experience an economic meltdown that will make the Great Depression look tame in comparison.


27 posted on 12/02/2008 11:22:11 PM PST by Michael Eden
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To: remaxagnt
He said the bottom of the market had been reached on July 15. Oops, wrong again Jimbo.

Cramer is unwavering in his support for Obama. Likes Hilary too.

What can you expect from a lib?

28 posted on 12/03/2008 12:06:59 AM PST by Memphis Moe
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To: rabscuttle385

For your viewing enjoyment, whenever the Jim Crammer name surfaces, I like to look back to this meltdown live on CNBC:

http://www.youtube.com/watch?v=SWksEJQEYVU


29 posted on 12/03/2008 2:07:33 AM PST by jsh3180
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To: Michael Eden
$700 TRILLION in derivatives

Where did you get that number? That is bigger than the GDP of the entire planet by a factor of ten. Your overall analysis is correct. We have way too much debt and spend too much, and don't save.

30 posted on 12/03/2008 2:08:47 AM PST by slnk_rules (http://mises.org)
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To: rabscuttle385

Well, then maybe Jim Cramer should muzzle himself a little more.

He has to be one of the biggest alarmists on TV.
He personally, has probably caused more panic in specific stocks than anybody. He may not talk “Great Depression” per se, but he comes close in his over the top rhetoric.


31 posted on 12/03/2008 2:46:56 AM PST by bizrocket
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To: slnk_rules

Here’s a couple links:
http://www.efinancialnews.com/usedition/index/content/2450894713

http://www.contrarianprofits.com/articles/derivatives-estimated-to-be-more-than-700-trillion/1505

Sort of makes you want to curl into the fetal position, don’t it? And yeah, it’s actually bigger by a factor of 14, from my source.

We not only have incredible debt, but now we’ve gone and leveraged it 50, 100, 200-fold.


32 posted on 12/03/2008 4:31:36 AM PST by Michael Eden
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To: Post5203
With the price of fuel dropping like it is, this thing will work itself out in 6 months.

Don't count on that.

There's still hundreds of billions of dollars that were lent out on mortgages building the housing bubble that will never be repaid, also needing to be worked out.

33 posted on 12/03/2008 5:01:09 AM PST by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: rabscuttle385

So, when will Cramer’s sponsors finally figure out he’s not an analyst? Actually, I’ve gone opposite of ‘The Wiz’ on several occassions and have done well. He’s just a shill for brokers banking on fools taking his advice.


34 posted on 12/03/2008 5:06:11 AM PST by RSmithOpt (Liberalism: Highway to Hell)
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To: rabscuttle385

Is this genius still touting Lehman Brothers as a great buy?


35 posted on 12/03/2008 5:13:44 AM PST by Travis McGee (--www.EnemiesForeignAndDomestic.com--)
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To: politicket

Everyone keeps talking about how the Great Depression had unemployment rates of 25%. That’s true - but that didn’t occur until 1933. The unemployment rate in 1929 was around 7.5% - pretty much where we are currently.
****************************************************
Metal prices have already fallen more in the last 4 months than they did from 1929 until the bottom in 1933... that means NOBODY is buying for manufacturing ,, not the USA ,, not China ,, not Russia ,, nobody...


36 posted on 12/03/2008 6:49:05 AM PST by Neidermeyer
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To: remaxagnt

this guy told people to sell when the market was falling so fast! his motto buy high sell low! this guy is a huge clown!!!!!!!!!
***********************************************
I haven’t watched Cramer for a few years although I have seen him sporadically in guest spots on other shows ,,, if he was advising people to sell ,, EVEN TODAY AT TODAYS LOW PRICES ,, he is doing people a huge service .. Funds of all kinds MUST SELL and will push prices lower ,,, Would you rather he tell people to “hold” while the big players do their selling? As I see it he was probably very slow to recognize that the company behind the stock just doesn’t matter when the entire market is being pushed down ... and kept recommending “undervalued” shares in great companies that just kept becoming more undervalued every day..


37 posted on 12/03/2008 6:57:27 AM PST by Neidermeyer
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To: remaxagnt

this guy told people to sell when the market was falling so fast! his motto buy high sell low! this guy is a huge clown!!!!!!!!!
*******************************************************
I just realized by your name you’re a real estate agent with REMAX ,,, using your thought process (hold onto those depreciating assetts, don’t dare sell them) it would be like you telling someone 2 years ago ,, just hold on the house; prices will go right back up! When they could have taken a slight haircut and sidelined their money for 5 years and rented a nice house...


38 posted on 12/03/2008 7:04:54 AM PST by Neidermeyer
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To: rabscuttle385

On CNBC they just had an analyst say the economy is going to get better because Obama is a person who- wait for it- “inspires confidence: like Reagan”!!!!!!!!

I’m hoping to get back in the market, but remarks like that scare me. The nuts are in charge.


39 posted on 12/03/2008 7:05:38 AM PST by mrsmith
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To: mountn man

Yes, I saw it, I was amplifying it. I did a poor job of cut and paste.


40 posted on 12/03/2008 7:37:58 AM PST by RobRoy (Islam is a greater threat to the world today than Nazism was in the 1930's.)
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To: Tublecane

He would likely mean coordinated monetary policy from the central banks.


41 posted on 12/03/2008 5:35:25 PM PST by Pelham (Obama: Reconstruction version 2.0)
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To: mountn man

The Carter years were inflation and stagnation but didn’t feature the bank and credit market weakness that exist now. That is the similarity some point to in comparing this recession with the ‘30s.


42 posted on 12/03/2008 5:38:58 PM PST by Pelham (Obama: Reconstruction version 2.0)
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To: politicket

If John Williams at Shadowstats is anything near to being correct unemployment is currently closer to 14%:

http://www.shadowstats.com/alternate_data


43 posted on 12/03/2008 5:43:17 PM PST by Pelham (Obama: Reconstruction version 2.0)
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To: mountn man

At least back then we didn’t have government as a huge equity owner in banks.

This is the largest robbery in the history of the world.


44 posted on 12/03/2008 5:46:18 PM PST by Boiling Pots (Anthony Kennedy: The 2nd most important person in Government 2009-2013. Pray for his good health.)
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To: Pelham
The Carter years were inflation and stagnation but didn’t feature the bank and credit market weakness that exist now.

Only if you ignore the fact that rampant inflation impacts creditors severely which results in some unintended consequences like interest rates that make credit impracticable to the average Joe.

45 posted on 12/03/2008 5:58:43 PM PST by jwalsh07
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To: jwalsh07

Inflation erodes the value of the dollar and can make credit impractical but it doesn’t threaten to collapse the banking system. Deflation does that.


46 posted on 12/03/2008 9:01:16 PM PST by Pelham (Obama: Reconstruction version 2.0)
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To: Pelham
Inflation erodes the value of the dollar and can make credit impractical but it doesn’t threaten to collapse the banking system. Deflation does that.

Markets necessarily require buyers and sellers. When buyers are priced out of the credit market the credit market ceases to operate efficiently, if at all. Which could also correctly be called be called credit market weakness. Which existed along with gas lines, ammo free Army units and hostages during the Carter years.

47 posted on 12/04/2008 6:26:17 PM PST by jwalsh07
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To: jwalsh07

I was in my 20s during the Carter years and know what happened.

Inflation makes loans expensive, and in the era of Regulation Q even dried up lending. Inflation can be fought in the manner that Fed Chairman Paul Volcker employed, putting the brakes on monetary growth and allowing interest rates to skyrocket.

That is not anything like a deflationary collapse of the credit market, which is far more serious and against which the Fed’s basket of tools may not be effective.


48 posted on 12/04/2008 8:37:16 PM PST by Pelham (Obama: Reconstruction version 2.0)
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