Mad Money, or Stupid Listeners?

Why anyone would listen to financial advice from a television program host is beyond me. It’s comedy, not advice:

After it was announced March 16 that J.P. Morgan Chase & Co. (NYSE:JPM) was purchasing Bear Stearns Cos. (NYSE:BSC) for $2 a share, the stock plummeted over 80 percent at the open of trading on March 17.

But, on March 11, Cramer told an e-mailer not to sell the beleaguered investment bank’s stock on his show’s Web site:

“Dear Jim: Should I be worried about Bear Stearns in terms of liquidity and get my money out of there? –Peter
Cramer says: “No! No! No! Bear Stearns is not in trouble. If anything, they’re more likely to be taken over. Don’t move your money from Bear.”

They don’t call it “mad” money for nothing.

Comments

way to misquote him says:

He told the listener not to be worried about deposits with bear steans… it had nothing to do with where he thought the stock would go. If it was about the stock, he wouldn’t have told him to keep the stock since he had already advocated to sell it on his show.

Michael Gracie says:

I am having a hard time understanding why someone with the wherewithal to put their money at Bear Stearns would be emailing into a TV show host for financial advice.

no ones fault but mine says:

Exactly is you have to call a tv host for advice on a stock like that then you are out of your league.

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