While some would consider Cramer a “stock pumper,” others would consider him their savior. I would consider him the “Dr. Phil” of Wall Street because, similar to Phil, he designs shows based on resolving some controversial issue with the intended goal of helping lost souls.
I find it of no surprise that Cramer has made appearances on Dr. Phil. Both are in the same line of work – cheeseball marketing.
At the end of each show both Dr. Phil and Cramer emerge as some sort of “Superman.” In short, both of these shows are more about entertainment than anything else and they create an illusion of “value” for their misguided viewers.
While this approach isn't really damaging for the Dr. Phil Show, it can be highly damaging for a show based on investments. As a result, Jim Cramer and the rest of CNBC serve as stock pumpers because the financial industry pays the bills there through buying ad time.
So the question is whether Cramer is intentionally manipulating stocks. Many people would say yes. I would tend to agree. What we do know is that he likes a stock one day and often hates the same stock a few weeks or even days later. Of course, after a stock he previously told you to buy collapses, he never bothers to remind you how terrible his advice is. This man has no conscious and does not know the meaning of the word “accountable.”
This on-off approach serves a purpose. It forces you to watch the daily drama so you won't miss when he turns sour on a stock you bought based upon his favorable review, which often includes yelling and screaming “Buy! Buy! Buy!.” It’s possible that Cramer has more “Buys” than Wall Street.
Meanwhile, he mentions so many stocks that it is virtually impossible to keep up with what he says. This too is intentional. It is designed to confuse you; to overwhelm you so you wont remember how poor his track record is.
Why would anyone with a brain waste their time following this guy other than to research his horrendous track record for a piece like this? I do know that some hedge funds watch in order to make easy money because they know the sheep are all in. But these are the small-time funds that are incapable of performing well without stooping to these shady tactics.
Has anyone ever bothered to count the number of different stocks Cramer mentions each year and how many his likes and dislikes? If you ever thought Cramer was ahead of any curve you have been fooled – exactly what his show is designed to do. And the facts show that his "picks" underperform the S&P 500 Index. Are you surprised?
Come on now. Looking at this marketing ad, can you really take Cramer's show seriously? Notice “Watch T.V. Get Rich” slogan. That's manipulation and deceit in its most obvious form. How many of you have become rich by watching Cramer? I'll guarantee none of you have. If you became rich it wasn't because you watched Cramer or other programs on CNBC. You became wealthy despite watching this trash.
If you think you will be ahead of the curve by watching Cramer or anyone else on CNBC, just take a look at the archives in YouTube – the ridiculous statements and predictions.
A Closer Look at Cramer
I would say that he is on TV for the same reason that other self-proclaimed investment gurus are….their investment days are over. For some, their investment days only began after they launched a successful career on television serving as hacks for Wall Street because they didn't have any money before then.
Perhaps Cramer did well in his hedge fund. But recall that he got in at the bottom (1987) and left at the top (2001). Thus, he pretty much rode market gains that averaged more than 18% annually. Remember, everyone did well during the great bull market.
UPDATE (August 22, 2012): We released an article showing that Cramer's hedge fund blew up, which is why he went into the media.
For a seemingly fairly bright guy (who has admitted having some mental issues) who spent two decades on Wall Street and ran a hedge fund, I do not view Cramer to be that sharp when it comes to investments. But for the sheep who watch his show, it's tempting to accept what Cramer has to say.
- After all, HE worked on Wall Street. Most likely you have not.
- After all, HE ran a “highly successful” hedge fund. Most likely you have not.
- After all, HE went to Harvard. Most likely you have not.
You need to realize that Cramer is a herdsman for sheep. And each day he leads you into the slaughterhouse.
Larry Kudlow is Much Worse
There are other clowns on CNBC (like Larry Kudlow) who are even worse than Cramer. In fact, Kudlow has and continues to be dangerous to anyone looking for a realistic assessment of the U.S. economy.
At least Cramer eventually admits reality (other than the fact that he has been wrong). Kudlow remains in denial. He has been absolute disaster and still thinks the economy is fine. Just check the archives on YouTube and you will see his lineup of cheerleaders who serve to confirm his horrendous fairy tales.
Examine his track record and you will be hard-pressed to find anyone who has been more off base, other than many of the Wall Street hacks he has as guests. Some of these guys are pure sell-outs. The others are complete idiots. In my opinion Kudlow needs to resign and apologize to Americans for providing such a biased and inaccurate view of the economy.
It's hard to find many in my profession willing to come forward and state the obvious about the manipulation and biased programming delivered by CNBC. The network’s biased coverage of the stock market and economy exemplifies media mind control at its best.
Why won't high profile financial professionals publicly expose this toxic behavior? Because they rely on the media to promote themselves and their business. And they do not want to risk being blacklisted by CNBC because when you have been blacklisted by one network you get blacklisted by the others. The only thing guests on these networks care about is marketing themselves so they can make money from you. So the last thing they would do is upset the network by stating the truth about the economy or stock market.
In short, CNBC is a destructive propaganda machine that has helped turn the market into a casino. I have personally spoken with legal counsel at the SEC and demanded that CNBC be shutdown and certain individuals there be investigated for stock manipulation. I will continue to do so. I suggest you do as well.
More Trash from CNBC
CNBC has now expanded its coverage into consumer finance, real estate and other topics. This is a network that has shows featuring “experts” like Suzy Orman, David Bach to Robert Kiyosaki. Need I say more? When will Kevin Trudeau or Russ Whitley be on CNBC? Perhaps they already have.
Ask yourself the following question; if these “experts” were really that good investing, why is it that they've formed their careers showing you how to invest? Many sports coaches were formerly great players in the sport they coached. Physical limitations brought on by age or injury caused their resignation. But what's the excuse for these investment “experts”? Is there any physical or mental limitation that would cause them to resort to investment coaches rather than professional investors? The fact is that they are on TV because they failed as professional investors.
If you were able to examine the net worth of these “experts” I am confident that the majority of their wealth has been made from selling you epiphany products; you know, their useless fluff books written to make you feel good but deliver noting of substance.
Sure, they may have had some investments that performed well during their tenure as a marketing machine. But that money is likely to have come from you and your support in buying their books and other products. In fact, some of them were completely broke prior to being elevated to the “expert” status by Oprah.
But you shouldn't conclude that everyone who writes books makes a lot of money from them. I know I certainly don't; not because my books are not good. They are amongst the best anywhere. That's a fact. The reason why I don't make much money from book sales is because I refuse to lie to people. And because I am not a shill for Wall Street, I am not on these financial propaganda networks. So no one knows about me or my books.
In my opinion, if you do watch Cramer, Kudlow, Fast Money or anything else on CNBC you're a sheep. No “ifs, ands, or buts.” “Oh well I only watch Cramer because it's entertaining.” WHATEVER. Stop fooling yourselves. If you are wasting time watching this trash, you're being using like a cheap tool.
I learned many years ago what CNBC and the other networks were up to, and it sure isn't about delivering the truth or having real experts on the air who warn investors in advance. FOX realized how successful the “bubble network” has been in steering sheep and has recently laughed their own “business channel.”
If you still doubt what I'm saying then you have little hope to do well investing. Who do you think pays the bills at CNBC? Mutual funds, brokerage firms, and other companies who buying millions of dollars of add time.
So can you “do it yourself”? Maybe. But you sure won't do well if you waste your time with CNBC, FBN and other financial propaganda. But don't think the Internet is your safe haven because it's not. While there is some valuable content online, most of the financial websites are either patched into the mainstream media, so they are giving you the same bull disguised in a different manner. Most of the other sites have their own hidden agendas as well, from being hacks for the gold industry, forex and other things.
Investing is like anything else. You need to devote a full time effort to it and only after several years of focused learning will you stand a chance. The problem is that you can't count on Wall Street. And you certainly can’t count on the media.
When it comes to investing, you have to understand that there is no middle ground. You need to make the decision to either buy index funds or ETFs and let them ride or do it yourself. And if you fall for financial propaganda, the only thing you will do yourself is lose money.
For those of you out there who insist on doing it yourselves, if you have a full-time job you had better be spending your evenings and weekends with your nose buried in books, reading news reports, studying charts, following real experts who know what they are talking about, etc. And if you watch CNBC you are lost, no exceptions. The only shortcuts the bubble network offers are shortcuts towards poverty.
So who do you want to trust? Take your pick. You can trust me or all of the clowns on CNBC and other networks. Before you make your decision, I advise you to examine all of our track records. Let me save you some time. I have been way ahead of the curve for a long time. My track record is in print and online. It is also in my books. Stay away from trash and focus, move forward and you will be a much better investor.
Click here to read Part 1 of my series on CNBC and the rest of the very dangerous financial media.
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