Jim Cramer fills his blog on
every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:
- Obama and the markets,
- all the good out there, and
- John Thain and Tim Geithner.
for information on
, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.
Obama Addresses the Crisis Up Front
Posted at 12:40 p.m., Jan. 20, 2009
Hard to imagine a lower bar to this speech. Perhaps
7350. I know it is difficult to relate this speech to the market, but as I would have said at my old hedge fund, "Fabulous job by Barack Obama, but what does it have to do with the price of
or the dividend of
I do hope we are in the winter of our hardship. I just fear the fall. I do think that we will get out of this, but it doesn't' mean you buy on it.
It does mean that we could solve the banking "problem," but it doesn't mean we can save the banks' dividends.
However, there is one real good piece of news: He addressed the darned thing. He did not talk in the double-talk of the previous administration. He did not dodge things. He didn't give us the "don't worry about it" or implied that we don't even need to solve it, or it will simply get there with the help of the market.
I say terrific. The second half will be better because of this man.
The first half? The fall turns into the winter. Then the winter turns into spring.
Feels like September to me.
At the time of publication, Cramer had no positions in stocks mentioned.
Plenty of Good
Posted at 9:42 a.m., Jan. 21, 2009
Johnson & Johnson
wasn't nearly as bad as the press makes it out to be. It was hardly a disappointment.
delivered solid numbers.
was better than expected -- despite today's Goldman downgrade. The big mineral producers,
, are cutting back mineral production to the point that
should be bought, not sold, despite today's downgrade by JPMorgan. The Baltic Dry Index is back over 900, signaling the mineral companies' actions might cause an uplift in prices.
It goes on:
still delivering positive numbers despite the First Boston downgrade.
beats numbers, as did (believe it or not)
-- remember that, even as it succumbs to selling brought on by the
ProShares UltraBear Financials
ETF, as it is the largest weighting.
coming on strong, and
has bounced back from the selling that occurred after it reported its great quarter. China's up for the year.
just delivered a number that sure seems not so bad, and in this environment of negativity has to be considered good.
Research In Motion
has excellent sales.
should be much lower, shouldn't it? But it hangs in there because, alas, it is cheap, as I think we will find out later today.
didn't get blitzed despite all of this negative news. I think the dividend is supporting it, but the fact is it
support it, and I can't ignore that. If IBM's good, I expect
to be better. I wonder if the bad in
gets factored in from some level around here.
numbers weren't disastrous.
shouldn't be this low.
Many stocks are back to where they bounced well, those that are plus-4% yield, and I see them bottoming as we trade. I am a buyer of these accidentally high yielders.
In fact, the only area that's killing us is the financials, and we are almost
out of points and percentages
to continue the bank downside that is motivated mostly at this point by the SKF.
I know it is impossible to separate the SKF names, the Dow Jones Financial Average names, from the morass. But I also know that the market kept ticking even after the disasters of
, Washington Mutual and Wachovia. I do not believe that
have suddenly gotten into the mortgage business. I do not believe that JPMorgan will need to be nationalized. I do not think that
has totally lost control of its own destiny. If we could simply draw a line between the healthier banks and the triaged bad banks, we could get some stabilization. We know that a market that "loses"
Bank of America
isn't a market that can rally. But we also know that if BAC and C are kept in business and its preferred and bonds insured, then we will get past this moment even if it means we take out the
lows, the latter more of a function of its inclusion of BAC and C than anything else.
Obviously now that we are officially oversold -- minus 6 on the S&P oscillator I pay for -- it is difficult to remain short. We got to minus 20 on the oscillator, unheard of, during the dark days of October and November. If we don't get that oversold -- and I don't believe we will -- then we can bounce based on all of the good news I referenced up top.
I hear the negative voices on the site, and I am negative in the short term until the BAC/C resolution. I am simply pointing out that the earnings period simply isn't as bad as I expected.
The state of things away from banks isn't dire. If you come up with a plan that makes it so banks' preferreds and corporate bonds are saved, and we create a list of strong banks and we give them equity, then we are going to turn out to be too negative
we don't go through the October and November lows, and that possibility can't be discounted.
: I am buying stocks for
here given my discipline to commit cash when the S&P oscillator exceeds minus 5. ... I wish
were offered good banks, with bad banks going to the FDIC. It deserves it. ...
holds up much better than
because of that dividend...
At the time of publication, Cramer was long Abbott, Cisco, Freeport-McMoRan, General Mills, Goldman Sachs, Hewlett-Packard, Johnson & Johnson, JPMorgan, Altria, Morgan Stanley, Wells Fargo and Wal-Mart.
Thain and Geithner Get Their Unjust Rewards
Posted at 4:40 p.m., Jan. 22, 2009
Let's talk truth about two ne'er-do-wells who are going to get away with financial murder: John Thain and Tim Geithner. Of course, today they are both being hounded for their silly, foolish and some would say reckless and even felonious actions regarding their office designs and lack of tax payments.
I do know that if I were an enterprising prosecutor, I would be looking into malfeasance for this kind of spending by a public company official at Merrill, and I know that I would be seeking to indict Geithner for tax evasion. Both are too juicy not to go after.
But we know that nothing will happen to either of them. They are above the law and untouchable for a variety of reasons, including friends and power.
I just wish that we would deal with the real issues here, the issues of substance: the hoodwinking of
Bank of America
by Thain and the hoodwinking of America by Geithner.
I haven't liked Thain since he snookered me about market share and achievements at the
New York Stock Exchange
. It was largely at the insistence of all the things that Thain promised that I got so behind
in a disastrous series of recommendations. He totally pants'd me. Well, it looks like he pants'd Bank of America, too. And now Ken Lewis, the CEO, is fighting for his bank's life. I was thrilled that Thain was fired, but it was too late, as you could argue that he looted both Merrill and BofA on the way to the exit.
Geithner? I have been saying for the better part of the year that he was in the room for every bad decision that's been made. Sure, I hear it endlessly that nobody saw it coming. Hey, my kids saw it coming: they watched their dad on YouTube telling 'em it. I keep hearing that nobody predicted that whole firms would go out of business. But that was the whole point, repeatedly, about my rant, that "firms would go out of business" and we were looking at "financial Armageddon."
Of course Geithner is too academic and too rarefied to pay attention to some clown TV host, even if that clown TV host retired after a successful stint at Goldman Sachs, and a good 14-year run at his own hedge fund.
And sure, no one knew that Lehman was that powerful,
unless you had listened to Lehman
, and it wasn't Dick Fuld who told Geithner that Lehman truly was big too fail. Oh well.
Or how about the inconsistencies? We don't know where Geithner stands on canceling preferreds, canceling firms, canceling bonds, closing banks, because they didn't ask, and he didn't tell.
To listen to the man, he was there for all of the good, and absent for all of the bad.
I've been real vocal on both of these, first putting Thain on the Wall of Shame and then pleading to Obama to the point of
that Geithner was the wrong man for the job.
Well, now we all know.
Thain left a stain over Wall Street that smells so bad that he may have covered up, momentarily, the stink of Bernie Madoff. Geithner? We're stuck with him. We're too far down this process to pull the plug now, and things are too dire to rustle up a new guy.
Thain and Geithner.
What a pair.
Lots of dispute about
next act, some from Doug Kass but some on the
, certainly worth reading. ... The
is too juicy. I am reading everything about it.
At the time of publication, Cramer had no positions in stocks mentioned.
Jim Cramer is co-founder and chairman of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for
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