Jim Cramer fills his blog on RealMoney 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:
- the market's lies,
- the sunny side, and
- this inept administration.
Lies The Market Told Me Originally published on Monday, Aug. 25, at 12:21 p.m. EDT The market's telling a lot of lies today. All you have to do is look at the stocks that are providing the upside, on a percentage basis, to whatever strength there is to the S&P 500. Let's go down the list. Nos. 1 and 2 are Fannie Mae ( FNM) and Freddie Mac ( FRE). I don't know a soul who thinks these two pieces of common stock are worth anything. If the preferreds may be worth nothing, who the heck wants these two? They are just little jumping beans that people short and cover on, because they can't be used to raise any money and no one wants anything these two companies issue. Witness that the preferreds -- thought to be such bargains when they were issued -- are down 50%. I continue to believe that Treasury Secretary Paulson doesn't want to take on these two companies until that common goes to zero, and it will, given the decline in housing prices today. The notion that they are "fully capitalized" gets sillier by the day. But they do have some worth in the out years just from the fee income. 3. Pfizer's ( PFE - Get Report) rallying a tad. That's a bond equivalent situation. All that has happened there is a dropping of a glaucoma drug. It's more of a sell than a buy today. Good chance to sell it.
It's Never Quite as Dire as It Seems Originally published on Tuesday, Aug. 26, at 6:59 a.m. EDT When nothing's working, something's working. I know sounds counterintuitive. but there is simply no reason to think, as bad as this market is -- and it is really, really bad -- that there isn't something to buy. We are gripped by the fear of the remaining black holes -- Ford ( F - Get Report), GM ( GM - Get Report), Fannie ( FNM) and Freddie ( FRE), AIG ( AIG - Get Report), Lehman ( LEH), WaMu ( WM - Get Report) and Citigroup ( C - Get Report) -- and we all know it. They are not convenient whipping boys. They are the Seven Deadly Stocks, and they aren't going away. But are they really hurting General Mills ( GIS - Get Report)? Can I see selling Procter & Gamble ( PG - Get Report) because of them? After we know the price increases are all baked in? And don't hit me with that strong-dollar stuff, because GIS doesn't have that much overseas exposure. Same with Pepsi ( PEP - Get Report): This is a national company with an international arm that is generating oodles of cash and doesn't have as much bad commodity exposure as it did a few months ago. I am not saying that these Seven Deadly Stocks are a recipe for good news out of housing or retail. Far from it. I have now read through every conference call of every retailer, including Limited ( LTD) and Gap ( GPS - Get Report) and Dick's ( DKS - Get Report) and Ann Taylor ( ANN) to give you some granularity, and not a single one's success had anything to do with demand. It all had to do with supply -- more importantly, a lack of it.
This Lazy Government Will Cripple Capitalism Originally published on Wednesday, Aug. 27, at 10:59 a.m. EDT Get ahead of the story. That's what we want from someone -- anyone -- from the FDIC, the Treasury, the Federal Reserve. Someone has to get ahead of the story.