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.

Even Hot Air is Falling

Jon Stewart's scathing rebukes of the financial news network, one after another, on "The Daily Show" underline much of the public's anger toward Wall Street -- and CNBC, which many regard as the Street's virtual mouthpiece.

And with that, the network now has the challenge of convincing the public that it's serving as a watchdog for investors, and not the establishment lapdog that it's seen to be. CNBC long has sought to identify with the powerbrokers of the financial-services industry, believing viewers would find their opinions to be the most relevant form of news.

But CNBC has a big problem. Its upbeat approach has served it well in creating a buzz and building an audience. Now that millions of people have lost homes and jobs, the national mood calls for the leading financial network to change its strategy and reflect the gloomy sentiment. (Marketwatch)

As Jon Stewart chewed up Jim Cramer, the loud-mouthed CNBC poodle, he should also have included Larry "We believe that free market capitalism is the best path to wealth destruction" Kudlow, who is another shrill ranter who loves pumping up stocks but is as perceptive as a slug.

I'm glad a prime-time American TV programme has exposed the scam that is CNBC. I rarely watch it, preferring the slightly more subdued reporting on Bloomberg, which also has far better analysts.

This is a lesson to just not trust the financial press. People really must try to understand that this is a casino in which the odds are against them. Unlike a casino, there are some good times in which everybody is winning, but when the losses start happening your chips will start to dwindle. The public financial press is not there to help you, it is there to make money for itself. Try to find an independent voice who will teach you how to make your own judgements, not pump and dump stocks leaving you clueless as to what just happened.

I have no sympathy for Cramer, Kudlow and CNBC. Cramer's week also got worse as when Thomas Clarke resigned as CEO of The Street.com Inc., the online financial news site co-founded by Cramer. Oh well, looks like even hot air is falling in this bear market.