So, we know that this pandemic is different than in 2008.
For example, the 2008 financial crisis was manmade, while this economic crisis is caused by a pandemic.
However, is the way that we're seeing executives or hedge fund managers, or really anyone in power, different than in 2008?
Jim Cramer weighed in.
Watch the full video above for more.
Jim, let's talk about your Real Money call in this morning. I want to focus specifically on the differences between this pandemic and 2008. Now, we've laid that out before and obviously there's one big one which is health versus an economic collapse caused by human nature. I want to focus though on what bigwigs are doing differently than they've done before this time around.
The bigwig with the hedge funds? Or the-
Hedge funds, executives, anyone in a position of power. What are they doing differently than now, as opposed to 2008?
It really helped that they went through that fire drill. Now, at the time it wasn't fire drill, but it really helped because what happened is that they... Let's say they were raising money. Well, what they did was decided to raise money in the long-term, not the short-term, so that they were not going to be faced with some sort of credit crunch right upfront. They spaced out their maturities really well.
I also think that they decided, "You know what? Let's keep some money on hand. Let's keep our inventories low. Let's not be beholden to any particular banker. Let's get credit lines so that if things get bad, we're ready." And you know what's happened is, is that some companies that we thought were in more trouble aren't. And that's very, very positive and it's making it so that people feel more confident about buying stocks. The question is, are they too confident? And I'm beginning to think they are.