Jim Cramer Says "Depression is Over" - Laughing Stocks Rise

Megaphone mouth Jim Cramer is auditioning for a new job as Wall St clown. Below is a video with guru Jim announcing that the depression is over, the Federal Reserve are geniuses and that pumping over $1 trillion dollars into shell-shocked economies is going to be the Lazarus touch.



Now this guy is in serious need of his own oxygen tent as his own company lies on the slab next to his reputation. Calling a bottom every time there is a temporary minimum is just plain stupid. Everybody can do that. Eventually everybody will be right and ignore all the false signals. Selective amnesia means he can carry on being loud, but volume is no indication of truth.

The next shoe to fall will be the dollar. Maybe not today, maybe not tomorrow, but some day the Fed's bluff will be called. China has gained some increased power in the IMF and World Bank due to its reserves. It has been calling for the dollar to be scrapped as the world's default reserve currency. This may happen slowly as the IMF issues more SDR loans. SDRs are bizarrely denominated in dollars but are a pool of currencies in which the dollar has a weighting of just 44%.

A renewed dollar slide may help US exports in the long term but the short term effect will be to stoke up inflation. The monetarist knee-jerk reaction will be to hike interest rates thereby trampling on the new shoots of an economic spring. It will, however, give Cramer the clown another go at shouting "Bottom!" For the moment, watch the key resistance level at the 200-day moving average.