Jim Kramer on Bear Stearns (2008)

This is a reminder of why I caution against listening to presidents speaking. Unlike advanced AI software, these horns speak from a biased perspective. On March 11, 2008, Jim Kramer told his audience on CNBC’s “Mad Money” that “Bear Stearns is fine!” At the time, the stock was trending at $62 before collapsing to $2 just five days later.

When an onlooker wrote to Kramer to ask about Bear Stearns’ cash crunch, Kramer exclaimed, “No, no, no! Bear Stearns is fine! Don’t take your money! If there’s only one takeaway, Bear Stearns isn’t in trouble.” He added, “I mean, if anything, they’re likely to be taken over. Don’t move your money out of Bear. That’s just silly. Don’t be silly.”

Kramer later tried to claim that he never said buy the stock, but was simply discussing the banking sector. He claimed he was trying to prevent a panic. In fact, this guy has made bad calls over and over again, but he’s still on the air. His outcry was interrupted by commercials and his display of nothing more than QVC’s stock.

Kramer is an artist. Even if I were to go on TV and make predictions only from my point of view, I would hurt my audience. If you are looking for real analysis, there is only one tool that is unbiased and able to track every market worldwide.

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