Cramer Plays With Fire and Gets Burned (CIT, C)
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Yesterday, market pundit Jim Cramer made a ridiculously awful call on embattled lender CIT (NYSE: CIT). Cramer made a call to buy CIT stock yesterday. Well today it is down 40% on reports a deal with bondholders will wipe out the current common shareholders.
Here is what Cramer said on CIT yesterday.
"Because no one forced CIT into bankruptcy, it can live to play again, and when I read in the New York Post that Paulson owns CIT debt, I realized that he's powerful enough to save this company, particularly because he is one of the investors in IndyMac and knows his way around the bottom of the debt barrel.
These two stocks represent lottery tickets that are no longer rip-ups because they have made it out of the "critical care" stage and are recovering.
I would buy them both."
The other stock Cramer was talking about was Citigroup (NYSE: C). Citi is another volatile situation that most investors should not be involved with.
It appears Mr. Cramer has not learned from past mistakes and is back to his old antics of going out on a limb on situations that he clearly doesn't understand. Due to Cramer's lack of caution and diligence, mom and pop investors are getting hurt.
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Cramer
When you are moving your portfolio to what Cramer said on todays show.....is there any good way to tell you're not watching a re-run?
Citigroup
C is a real company??!! So a bank that the government decided to prop up is a "real" company"; and one that didn't get bailed out isn't. That's as bad as calling the economy "free market capitalism", when it's more like Monopoly with the government writing the rules and playing the bank, who doesn't have to follow the rules and can do anything they see fit.
Blogger Doesn't know what he is talking about
This is why you are writing for a Garage-Blog. Comparing C with CIT is moronic. C is a real company. CIT is a figment of investors imagination. C is in better shape than 90% of the big banks out there...as further evidenced by the 8.7 Billion they just picked up in another sale. Good try though
Mistakes? Yeah right!
Cramer's running a job on us with his buddies at Goldman Sachs. Whenever they know another business is going to tank, they have Cramer give it a blowjob so there's a runup and Sachs can cash out their holdings with the help of HFT before the stock tanks. Fucking DUH.
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Cramer
BMY on Oct 2, 2009 05:51 AMBy the time Cramer calls a stock, it is most generally at the top. That is where his ideas come from. His staff identifies the most recent top gainers, and he says buy, buy, buy. His picks come from momentum or his perception of momentum as more accurately stated.