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 death of journalistic integrity;
- the foolishness of trading off Fed chatter; and
- Ethan Allen's upside.
R.I.P. Journalistic Integrity
Posted at 11:47 a.m. EDT, Monday, July 26 If you are like me, you hate it when there are articles that totally throw you off and impact markets and stocks in ways that you cannot game because the articles aren't, well, true. I want to highlight two because they were particularly impactful. Also, if you don't mind my saying, they were refuted by me here and on the show, yet it didn't' matter. There were no corrections. The most visible of these wrong-news cycles came during the height of the euro crisis when the Financial Times reported that the Chinese were going to sell their European bonds. I have no idea where this story came from, and it made no sense. Europe is China's biggest market. The Europeans are totally tariff-happy. If they saw China boycott their markets or start pulling out in a crisis, they would simply throw up tariff barriers to shut down a huge amount of Chinese imports. > > Bull or Bear? Vote in Our Poll It helped drive the euro down to the lows. It helped caused the world to dip into a vicious bear market. On July 14, we saw the truth. China was buying bonds, not selling them, including Spanish bonds. By that time, of course, the crisis had past, but in the FT article that talked about China buying, there was no mention of the big breaking story about China selling. C'est la vie. The second story that had no gravitas: the Justice Department investigation of Goldman Sachs ( GS). A host of papers reported when Goldman Sachs was in the $160s that the Justice Department was examining Goldman to bring a criminal law suit against the firm on the Abacus deal. I immediately said that this was just untrue, using some pretty decent Justice Department sources. The SEC has to tell the Justice Department what it is doing. But the stories talked about a "referral" to the Justice Department, which implies a recommendation to file criminal charges, something that sank the stock all the way to the $130s. Much of that move came because people were worried that a Justice filing would wipe out the firm. We now know that there was no referral -- it stayed at the SEC -- but there was no correction. Nobody wrote, "We got this one wrong." Two stories. Two wrong stories. Total immunity. Done with impunity. And boy were investors ever crushed by them. I guess being a journalist means never having to say you're sorry. At the time of publication, Cramer had no positions in the stocks mentioned.