This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cramer and Trump: Both Right About QE3 and Stocks

Stocks in this article: NFLX AMZN

NEW YORK ( TheStreet) -- Late last week on his Mad Money television show, TheStreet's Jim Cramer threw his support behind Federal Reserve Chairman Ben Bernanke's decision to provide further economic stimulus.

Channeling Bruce Springsteen, Cramer argued, "You can't start a fire without a spark." I had no idea Cramer and I share an adoration of Springsteen. I will shamelessly milk that for all it's worth because, ultimately, Cramer is my best chance of meeting Bruce backstage.

That aside, I agree with Jim's sentiment.

Also on CNBC, Maria Bartiromo interviewed Donald Trump. Trump dissed QE3, arguing that it creates "phony numbers" in the stock and mortgage markets.

Then, in a funny little bit that proved Trump has way too much money, he told Maria that this unfortunate fact benefits guys like him. He says he watches CNBC, notes the stocks that get mentioned and buys some of them. Now, we know one of the heavy hitters responsible for the CNBC effect.

At first blush, I treated Cramer and Trump's comments as distinct from one another.

From a substantive standpoint, Cramer was far more convincing. He spent 10 minutes persuasively laying out his case like only he can. Agree or disagree with his take, there's no question Cramer's argument made Trump's look thin.

Trump used plenty of synonyms for "phony," but never provided any rationale for why QE3 is a bad thing. In his world, it triggers artificial stock prices, artificial mortgage rates and a windfall in capital gains (unrealized, realized, I'm not sure) for people with money to put in the market.

Instead of taking the typical dichotomous approach -- Cramer is right and Trump is wrong -- it's probably more useful to consider the message Trump sent. While I am not sure if Cramer agrees with it, I reckon it would bring he and the Donald closer together.

As I read Trump, he's saying QE stinks for the country, the economy and people who do not have considerable amounts of money like he does. Unlike so many complainers, though, Trump does not externalize.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs