Jon Stewart Goes After Jim Cramer (Again)

I think Cramer does have a lot of good advice and is obviously knowledgable about the market. I enjoy his show, but the one thing tat has always irritated me about him is his inablilty to admit when he is wrong about the big things (like Bear Stearns, calling market bottoms in 2007-2008, etc.). Many people here saying the Bear rec was taken out of context are missing that Stewart supplemented with footage of Jim undisputably recommending that people buy Bear (5 days before and seven weeks before the stock crashed). He never said sell so if you bought on his rec and held you definitely had your investment wiped out. One of the most aggravating things about Cramer is that he always tries to spin what he said to make it seem like he was right. Once in awhile he will admit being wrong on something small just to appear fairminded, but really he is not. He is really very wrapped up and concerned about being right. The truth is no one can predict with any certainty where the market or a particular stock will go. That is irresponsible because it depends on too many variables and no one can predict the future. Unfortunately, Jim has made predicting the future (buy/sell recommendations) a major premise of his show. He should stick to discussing how he analyzes stocks and market fundamentals (including the technical analysis which has creeped into his show after so many years of saying it doesn't matter). That is what Jim Cramer is good at, general education about the market. Jim should teach a man to fish, don't try to give him one because like the rest of us he is wrong 50% of the time in his predictions. At a trading desk you can see your mistake and make adjustments based on the reality of the present. This is why making future predictions about anything is irresponsible and wrong.

Kudos to on Stewart for exposing this major flaw in the premise of Mad Money and in Jim Cramer's hubris. Hopefully, Jim will eventually get beyond this, take the crticism to heart and adapt his show likewise (and grow to be a better person). I think Cramer is a good person deep down who wants to help people. What Jon says about him needed to be said. Cramer seems to be pretty adaptive and if he can just not let his own ego get in the way the show and he will be better for it.

As for CNBC, they do treat the market like a sports program with "hot honeys" and insipid banter. Mad Money is probably the best show on the network. I'll never forget that lame stockpicking contest, and I think it was Maria Barteromo or Erin Burnett commenting that one of the celebrity players had just "doubled down" on a stock. Inspiring viewers to look at the stock market like a casino is what contributed greatly to the current mess we are in. Investing is not about making "fast money."

Dan Larkosh of MA 12:55PM March 11, 2009