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Wednesday,
March 4, 2009
(Cont'd from
above)...
Jim (cont'd):
Yeah… I am talking
President Obama, the
guy totally nailed
it… he came out at
Dow 6,726, and
called a shot every
bit as good as the
Babe… we are now
about 150 points
higher from his
call… why not make
it, after all, he is
the one who has been
pounding the market…
with his assault on
Main Street’s
401K’s, and IRA’s,
and 529 plans by
proposing a budget
that crimps the
interest rate
deductions for
houses… that raises
taxes on everything
on traders to long
term investors… that
turns healthcare
companies into
non-profits… that
crushes utilities by
ultimately raising
rates for all but
100% wind-mill and
sun powered
repairs…. that
raises taxes for the
very people that who
are responsible for
most of this
nation’s job
creation… right into
the teeth of a
garden variety
depression…
something that
didn’t work for FDR…
in 1937, and won’t
work now… not to
mention offering
total non-plan
banking plans… where
we don’t even know
what he is thinking…
for all we know he
might align himself
with the AFL/CIO
nationalization …
thereby punishing
the malefactors of
wealth… and the
hundreds of
thousands of people
who work at these
places and don’t
make a lot of money.
If he knew he was
going to stop the
rhetoric and take
his agenda slower…
you know what he
had… he had the
ultimate market
foresight…. since it
was his plans and
proclamations that
have catalyzed the
bears… and let them
roam unaccosted… I
am hoping that that
is the truth… and
who would have thunk
it… last night’s
special rose-colored
glasses edition
worked… revise my
cynical play book…
hope is a factor
when the man
squelching it takes
a holiday… all that
said, I think Obama
is coming to
Cramerica…. I think
the guy is starting
to figure it out….
night after night we
have pounded him for
not understanding
that you can not
drop a neutron bomb
on Wall Street
without taking out
Main Street… you can
no more stop the
contagion from
migrating to the
rest of the country,
than the soldiers
could stop the virus
in “The Stand”, by
sealing off the
Lincoln Tunnel… if
you want a Steven
King analogy… our
President, at the
very least, is no
longer a Bolshevik,
perhaps he is still
a Menshevik, maybe
even a Kerensky fan…
but that is a step
up in my book…hey,
you know what, right
now I am hearing
less of Vlad Lenin’s
what is to be done…
and more of John
Lennon’s “Baby You
Are A Rich Man”… if
not you can’t buy me
love, but can buy me
stock.
I think this market
is rallying in part
because Obama is
going to tone down
the class warfare
saber rattling… we
are going higher…
cause we get the
sense that the
agenda is going to
morph from
confiscation/redistribution
mode… and more into…
let’s not be tone
deaf to a market
that could truly be
signaling a
depression… with a
staggering decline
in all stocks from
the utilities and
the golds… to real
estate investment
trusts, financials,
retailers,
transports, and just
about everything
else that has a
price and trades on
the New York Stock
Exchange or
Nasdaq…
of course, Obama did
time his buy America
call perfectly… when
the market was
radically oversold…
where prices had
lost more than half
of their value…
where more than 1/5
of the S&P 500 now
trades in single
digits… he certainly
had the savy to pull
the trigger on the
cold shot to buy,
buy, buy…. about
3300 points lower
than Buffett’s buy
America piece in The
New York Times op-ad
page… Buffett has
got nothing on Obama
when it comes to
assessing value…
forget the oracle of
Omaha… we like the
oracle of Obama.
The President
correctly pointed
out that price to
earnings ratios had
gotten so cheap,
that you pretty much
had to buy
something… you had
to do a little
schnitzel… I have
never seen more
stocks trading at
single digit PE’s in
my life… but he has
also got the benefit
of the second
Chinese stimulus
plan that was
announced last
night… for all I
know, he tapped into
the wisdom of noted
bear Doug Cass, who
just this week went
bullish in
RealMoney.com,
where I am chairman…
calling a bottom in
the very same week…
heck, now you know
what I want… I want
to get my hands on
the White House’s
proprietor
oscillator… I want
the joints
chartists… I want to
know if Obama has
covered his shorts
and gone long… but
whatever it was you
have to like this
rally… I think it
could last if we get
even the slightest
bit of good
corporate news…
perhaps an
unemployment report
on Friday that is
more benign than we
expected… how about
this remarkable new
program captained by
new Cramer fave Ben
Bernanke, that will
allow hedge funds to
buy bonds that
contain student
loans, commercial
mortgages, auto
loans, or credit
card debt with
little risk as the
Federal Reserve
takes the biggest
hit in a default…
this program called
TALF makes me want
to get back into the
hedge fund game.
Here is the bottom
line…
▼ ▼
▼ ▼
▼
 The Bottom Line!:
Put simply… once you
get that buy, buy,
buy call from the
President out there…
his first of what I
hope are many… once
you recognize that
the stock market is
the barometer of the
loved Main Street…
not just the now
scorned Wall Street…
once you start a
thundering herd,
rather than
slaughtering one…
you got something
that I think can
last… with
technologies, oils
and material stocks
leading the way.
If President Obama
continues to say buy
stocks, I think the
rally could last...
Dow up 150... I
think this rally
could last… I think
this rally is
caffeinated… I think
it is fevered with
tech, oil, and
materials leading
the way.
[verbatim recap]
▼ ▼
▼ ▼
▼
Jim went on after
this segment to take
questions from
callers, and
responded with his
comments...
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Q:
I want to know
regarding these
banks, how long will
it be before we find
out just how much
bad paper is out
there?...
Jim:
Alright, if we get
what I am hearing
will happen… if we
get a little sense
that the regulators
are going to
forbear… no not
scrap the mark to
market… and then get
all the purists
upset… but maybe we
give the banks some
leeway… then we will
have just a giant
bank stock rally
that will put the
SKF short sellers to
shame, and will make
us feel like why
didn’t we buy…
however, may I just
please say that I am
not recommending any
bank stocks on this
show other than
Golden Slacks and
Morgan Stanley, I
own them for AAPMCT…
the reason is I feel
very strongly, JP
Morgan too, I bought
some of that today
for the trust… I
feel that the
preferreds represent
a better buy… as
articulated by James
Altoura during the
wonderful and
fabulous 2:00
o’clock show.
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Q:
About the Chinese
stimulus package, is
the package going to
be more effective
because it is a less
developed country?
And will that make
it more investable,
more bankable?...
Jim:
Well, when the
capitalists put the
money to work you
get some serious pin
action… when the
socialists put the
money to work, you
get a lot of Pelosi
kind of non-pin
action… the Chinese
are completely ahead
of the game… they
are putting people
to work… I mean I
think their plan is
to put like 240
million people to
work… I read in The
New York Times we
got like 20,000
people going to
work… I don’t know,
big country, lot of
people… I am
betting, right here,
right now… I am
betting on General
Tso to trump Colonel
Sanders… and I will
take that bet every
day of the week… and
I tell you what, I
will Colonel Sanders
7 because it is a
big game.
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Q:
Why hasn’t in the
governments economic
rescue, isn’t there
some incentive,
capital gains
incentive, like
lower capital gains
for small companies
which we know create
most of the jobs in
the economy?
Jim:
Because it is time
to soak the rich… I
want a gigantic
loofah out here… I
got to tell you
something, it is
wrong… I hope that
it gets changed in
Congress… but you
know what, I don’t
call the shots… I
just call my shots.
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[verbatim recap]
[end of segment]
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