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Opening Segment #3: |
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 'Outrage
of the Day'
and
'Mad Mail' |
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Thursday,
March 12, 2009 |
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There's always
something outrageous
occurring on Wall
Street and Jim is
identifying another
outrage tonight...
Cramer’s sounding
off on what keeps
knocking stocks
down, again &
again...
Jim:
Now that we have got
a guilty plea out of
Bernie Madoff… I no
longer have to say
allegedly every time
I talk about this
darn ponzie scheme…
it is time for a
celebratory outrage…
that is right, a
little change of
pace… a celebratory
outrage… at the
regulator who let
this crook operate
for years… not to
mention all of the
other mischief that
has gone uncaught
and unpunished… the
other day I said
that we needed more
regulators… that
Wall Street should
be regulated at
least as heavily as
we regulate gambling
at casinos… now it
has been pointed out
to me subsequently
that a typical
brokerage firm might
be regulated by
numerous different
entities… ranging
into the double
digits… like the
SEC, the FNRA, the
NYSE, not to mention
every one of the 50
states.
We don’t need more
regulatory
institutions… but I
do still think that
we need more bodies…
like in people…
doing the
regulating… more
cops on the street…
but that is not
enough… we already
have lots of
regulators who just
aren’t doing their
jobs very well… what
we really need are
more and better
regulators… the way
we do things now… we
have a plither of
people who are
basically just
regulatory box
checkers… their job
isn’t to think or to
truly investigate…
they are just in
there monitoring the
process… that is how
a guy like Madoff
could appease the
regulators for so
long… he had enough
to satisfy the box
checkers… but if he
had been
investigated
substantively… you
know if it had been
a substantive
investigation as to
what he was up to…
he would have been
caught years ago.
The regulators all
have a bureaucratic
culture… that is not
enough in a world
where financial
innovation happens
at the speed of
light… or at least
the speed of sound…
we need regulators
who are smart enough
and knowledgable to
catch the bad guys
in a complex,
evolving world… now
obviously you need a
certain amount of
box checkers because
there is plenty of
mundane boring but
important stuff that
we need to keep an
eye one… still, we
also need regulators
who truly
understands the
business, the ins
and outs, the SKF’s,
the derivative
trades, all sorts of
credit default
stuff… they need to
understand this
stuff and they can
spot when things are
going awry… not just
people who go down a
list of process
stuff… the crooks
can run around
circles around those
guys… the crooks are
too smart.
More regulation
isn’t enough… the
majority of the
people in the
financial industry
aren’t malefactors
of wealth… I am
going to repeat that
again, aren’t
malefactors… they
work ethically and
honestly thru the
whole cycle with
plenty of integrity…
we don’t need more
eyes watching
everyone in the
financial industry…
we need smarter
brains analyzing
what is going on to
pick up the real
problems… the SEC
needs to start
hiring people who
know the industry…
they need more
sophistication… and
they need people who
do more than just
tick off boxes on a
check list… that is
the lesson that
Madoff taught us….
now that this swine
is going to the
clink… time to make
sure that this kind
of outrageous scam
happens again...
Now, for some viewer
emails...
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See comments continued below...
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Thursday,
March 12, 2009
(Cont'd from
above)...
Jim (cont'd):
Viewer emails begin
below...
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Jim's
rating on
this stock |
STOCK
SYMBOL |
Closing
price that
day |
Full Company Name |
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COP* |
37.39 |
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'Mad Mail'
ConocoPhillips (COP*)
Q:
Jim,
You’ve been pounding the
table on
ConocoPhillips (COP*).
It is down today while
other related companies
are in the green along
with oil. Was the annual
analyst call that bad?
Is it time to sell?
John
Jim:
I own it for
my charitable trust,
ActionAlertsPlus.com,
I did a lot of soul
searching with my friend
Stephanie Link who runs
it with me… what Conoco
basically said is that
they need oil to go
higher to make more
money… the other day
Chevron Corp. (CVX*)
gave a talk, and they
really just talked about
that they can make money
at this level… Conoco is
what we call more
levered to the price of
oil… and that freaks
people out…because there
is a lot of people that
think oil is going back
down… my take, what an
opportunity to buy
Conoco… because it has
great yield, and it has
great management… and I
think oil stabilizes and
they make a ton of
money.
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DXO |
2.49 |
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'Mad Mail'
Crude Oil Dble Long ETN
(DXO)
Q:
Jim,
In a previous Mad Money
segment, you clearly
explained why the double
short index funds did
not perform well during
the downturn. It was
very useful information.
Does your same
conclusion apply to
double long indexes like
Powershares DB Crude Oil
Double Long (DXO) in an
up oil market?
Steve
Jim:
I think it does… I don’t
trust any of these…
look, I owned one for…
you can do it for China
and they haven’t worked…
or the USO hasn’t
worked… you buy the
commodity, it is better…
and most people just
don’t have the money to
buy the oil future… but
that is a, I say, a
truer depiction of what
happens with oil… which
is what matters.
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na |
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'Mad Mail'
General question about
banks...
Q:
Cramer,
What’s going to happen
to the mortgage lenders
when no one will provide
warehouse lines? Tow
more banks announced
they would no longer
provide warehouse lines
totaling 5.4 billion and
about 27% of all lines
available in the market.
Non-bank lenders will be
done, third party
originators will be done
and competition in the
market will be done.
Rates will be so high
that it will kill the
housing market and
nationalization of
mortgage lending will be
a reality. What are your
thoughts on this issue?
Bill
Jim:
Jim: I think you are
completely and utterly
wrong… I think that
there are plenty of
banks in this country…
the banks will compete…
I don’t like the
warehouse lines… they
tended to be given in a
lot of cases to
companies that didn’t do
their due diligence… now
those companies need to
fall by the wayside… I
think that banks that do
mortgages and keep
mortgages rather than
sending them off into
the Netherlands are the
banks that I want to go
with… could competition
be hurt… you know what,
look what we just went
thru because competition
was free reeling… the
worse housing situation
in the world, that gave
us the second worst bear
market ever.
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▼ ▼
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[verbatim
recap]
[end of segment]
Read Jim's next Segment
here
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Read Jim's next Segment
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