Difference between revisions of "Jim Cramer"

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(Undo revision 708595 by DerickC (Talk) I'm in the process of editing it, much of which is not "stolen" from anyone, but merely facts. Nice try.)
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On March 2, 2009, Jim Cramer drew the attention of some critics after his evaluation of [[Barack Obama|President Obama’s]] spending plans and the administration’s handling of the banking crisis. Cramer’s name came up on March 3 during a [[White House]] press briefing after Cramer said that Obama was responsible for “the greatest wealth destruction I have seen by a president.”<ref>{{cite news |title=Cramer to White House: Wealth Destruction Is Real |url=http://www.cnbc.com/id/29490969/ |publisher=CNBC |date= 2009-03-03|accessdate=2009-03-03}}</ref> An offended White House shot back.<ref>{{cite news |title=White House Knocks Jim Cramer For Calling Obama Budget "Greatest Wealth Destruction By a President" |url=http://www.mediabistro.com/tvnewser/cnbc/white_house_knocks_jim_cramer_for_calling_obama_budget_greatest_wealth_destruction_by_a_president_110203.asp |publisher=CNBC |date= 2009-03-03|accessdate=2009-03-03}}</ref> Press Secretary [[Robert Gibbs]] said, "I'm not entirely sure what he's pointing to make some of the statements." When pressed further by [[NBC|NBC's]] Tom Costello, Gibbs said, "If you turn on a certain program it's geared to a very small audience [...] And you can go back and look at any number of statements he's made in the past about the economy and wonder where some of the backup for those are, too."
 
On March 2, 2009, Jim Cramer drew the attention of some critics after his evaluation of [[Barack Obama|President Obama’s]] spending plans and the administration’s handling of the banking crisis. Cramer’s name came up on March 3 during a [[White House]] press briefing after Cramer said that Obama was responsible for “the greatest wealth destruction I have seen by a president.”<ref>{{cite news |title=Cramer to White House: Wealth Destruction Is Real |url=http://www.cnbc.com/id/29490969/ |publisher=CNBC |date= 2009-03-03|accessdate=2009-03-03}}</ref> An offended White House shot back.<ref>{{cite news |title=White House Knocks Jim Cramer For Calling Obama Budget "Greatest Wealth Destruction By a President" |url=http://www.mediabistro.com/tvnewser/cnbc/white_house_knocks_jim_cramer_for_calling_obama_budget_greatest_wealth_destruction_by_a_president_110203.asp |publisher=CNBC |date= 2009-03-03|accessdate=2009-03-03}}</ref> Press Secretary [[Robert Gibbs]] said, "I'm not entirely sure what he's pointing to make some of the statements." When pressed further by [[NBC|NBC's]] Tom Costello, Gibbs said, "If you turn on a certain program it's geared to a very small audience [...] And you can go back and look at any number of statements he's made in the past about the economy and wonder where some of the backup for those are, too."
  
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On March 5, Jim Cramer responded to the White House.<ref>{{cite news |title=Cramer: My Response To The White House |url=http://www.mainstreet.com/article/moneyinvesting/news/cramer-my-response-white-house?page=2 |publisher=MainStreet |date= 2009-05-03|accessdate=2009-05-03}}</ref> He rebuked, "Huh? Backup? Look at the incredible decline in the stock market, in all indices, since the inauguration of the President, with the drop accelerating when the budget plan came to light because of the massive fear and indecision the document sowed: Raising taxes on the eve of what could be a second [[Great Depression]], destroying the profits in health care companies, tinkering with the mortgage deduction at a time when U.S. house price depreciation is behind much of the world's morass and certainly the devastation affecting our banks, and pushing an aggressive cap and trade program that could raise the price of energy for millions of people."
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On March 5, Jim Cramer responded to the White House.<ref>{{cite news |title=Cramer: My Response To The White House |url=http://www.mainstreet.com/article/moneyinvesting/news/cramer-my-response-white-house?page=2 |publisher=MainStreet |date= 2009-05-03|accessdate=2009-05-03}}</ref> He rebuked, "Huh? Backup? Look at the incredible decline in the stock market, in all indices, since the inauguration of the President, with the drop accelerating when the budget plan came to light because of the massive fear and indecision the document sowed: Raising taxes on the eve of what could be a second [[Great Depression]], destroying the profits in health care companies, tinkering with the mortgage deduction at a time when U.S. house price depreciation is behind much of the world's morass and certainly the devastation affecting our banks, and pushing an aggressive cap and trade program that could raise the price of energy for millions of people. The market's the effect; much of what the president is fighting for is the cause. The market's signal can't be ignored. It's too palpable, too predictive to be ignored, despite the prattle that the markets predicted far more recessions than we have."
  
 
Cramer questioned criticism he received which he explained makes him "uncomfortable being in the crosshairs of columnists and comedians I enjoy."<ref>{{cite news |title=Cramer Takes on the White House, Frank Rich and Jon Stewart |url=http://www.mainstreet.com/article/moneyinvesting/news/cramer-takes-white-house-frank-rich-and-jon-stewart |publisher=MainStreet |date= 2009-09-03|accessdate=2009-09-03}}</ref> Cramer asked, "So, why after toiling in the cable wilderness for four years with [[Mad Money]] am I the target of the wrath of the Obama clan, and the darling, albeit surely momentary, of the [[Tea Party Movement|Obama-critics]]? After all, my criticism of Obama's handling of the economic crisis is a lot less pointed than my withering August 2007 'They Know Nothing' meltdown<ref>{{cite news |title=Jim Cramer's famous rant about the "know nothing" Fed. |url=http://www.cnbc.com/id/15840232?video=808465173&play=1 |publisher=NBC |date= 2007-07-29|accessdate=2007-07-29}}</ref> against [[Ben Bernanke]]<ref>{{cite news |title=Cramer: Bernanke, Wake Up |url=http://www.cnbc.com/id/15840232?video=452808336 |publisher=NBC |date= 2007-03-08|accessdate=2007-03-08}}</ref> and the previous administration's handling of the economic crisis."
 
Cramer questioned criticism he received which he explained makes him "uncomfortable being in the crosshairs of columnists and comedians I enjoy."<ref>{{cite news |title=Cramer Takes on the White House, Frank Rich and Jon Stewart |url=http://www.mainstreet.com/article/moneyinvesting/news/cramer-takes-white-house-frank-rich-and-jon-stewart |publisher=MainStreet |date= 2009-09-03|accessdate=2009-09-03}}</ref> Cramer asked, "So, why after toiling in the cable wilderness for four years with [[Mad Money]] am I the target of the wrath of the Obama clan, and the darling, albeit surely momentary, of the [[Tea Party Movement|Obama-critics]]? After all, my criticism of Obama's handling of the economic crisis is a lot less pointed than my withering August 2007 'They Know Nothing' meltdown<ref>{{cite news |title=Jim Cramer's famous rant about the "know nothing" Fed. |url=http://www.cnbc.com/id/15840232?video=808465173&play=1 |publisher=NBC |date= 2007-07-29|accessdate=2007-07-29}}</ref> against [[Ben Bernanke]]<ref>{{cite news |title=Cramer: Bernanke, Wake Up |url=http://www.cnbc.com/id/15840232?video=452808336 |publisher=NBC |date= 2007-03-08|accessdate=2007-03-08}}</ref> and the previous administration's handling of the economic crisis."

Revision as of 22:58, October 10, 2009

James Joseph "Jim" Cramer (born February 10, 1955)[1] is an American television host of CNBC's Mad Money and a co-founder of TheStreet.com, a former hedge fund manager, and a best-selling author. He is also a regular contributor to New York magazine and an occasional contributor to Time Magazine.

Cramer was born to Polish-American parents in Wyndmoor, Pennsylvania, a suburb of Philadelphia.[1] One of his first jobs was selling ice cream at Veterans Stadium during Philadelphia Phillies games.[2] Cramer went to Springfield Township High School in Montgomery County.[3] He graduated magna cum laude from Harvard College in 1977 with a B.A. in government.[2]

Career

Investor

Cramer started privately investing in the stock market during his time at law school,[1] using his student loans. Cramer began leaving stock picks on his answering machine, impressing The New Republic owner Martin Peretz, who gave him $500,000 to invest; Cramer earned Peretz $150,000 in two years.[4]

His track record helped Cramer obtain employment in 1984 as a stock broker in Goldman Sachs' Private Wealth Management[5] division. Cramer's success in this position led him to found his own hedge fund, Cramer & Co. (later Cramer, Berkowitz, & Co.), in 1987. The fund operated out of the offices of hedge fund pioneer Michael Steinhardt's Steinhardt, Fine, Berkowitz & Co., and early investors included Eliot Spitzer (a Harvard classmate and one of his oldest friends),[6] Brill, and Peretz.[7]

Cramer's fund had one down year from 1988-2000 while he ran it, in 1998, a year that was disastrous for many in the industry. Cramer, Berkowitz finished down 2-3% and they did not charge a management fee that year to their clients. In 1999 the fund returned 47%; in 2000 28%, beating the S&P 500 by 38 percentage points.[4] Cramer retired from his hedge fund in 2001, finishing with a 24% average annual return over 14 years and having "routinely [taken] home $10 million a year and more."[4] The fund was taken over by his former partner Jeff Berkowitz after Cramer's retirement.

Cramer claimed to be worth $50 to $100 million in October 2005. He no longer owns any stocks of his own other than his stake in TheStreet.com, currently only trading for his charitable trust.[4]

TheStreet.com

In 1996 Cramer co-founded TheStreet.com with The New Republic editor Martin Peretz, one of his hedge fund's original clients. Cramer is currently a market commentator and adviser to the TheStreet.com, as well as its largest shareholder. He also manages a charitable trust stock portfolio which is tied to TheStreet.com through a subscription service called the Action Alerts PLUS Portfolio. Cramer currently works on a new project, MainStreet.com.

Mad Money

The cable television program Mad Money with Jim Cramer began on CNBC in 2005. As mentioned on CNBC's Web site in an article titled, "Mad Money Manifesto" by Jim Cramer,[8] the show's mission statement and Cramer's job is "to help regular people – shareholders at home watching the show – to better understand the market." Mad Money is about education, "this show isn’t about stock picking, as many critics think it is." The show features eight segments: The Lightning Round, Game Plan, Executive Decision , Off the Charts, Sell Block, Sudden Death, Am I Diversified, and Mad Mail.[9]

Other television appearances

Cramer has made appearances on NBC's Today show, NBC Nightly News, Live with Regis and Kelly, ESPN Classic's Cheap Seats, NBC's Late Night With Conan O'Brien, Comedy Central's The Daily Show with Jon Stewart & The Colbert Report, The Tonight Show with Jay Leno, Late Show with David Letterman, ABC's Jimmy Kimmel Live and NBC's The Apprentice (U.S. Season 7) called The Celebrity Apprentice.

Cramer also appears in the 2008 motion picture Iron Man, spoofing Stark Industries on his show Mad Money.[10] He is also expected to appear in the upcoming movie Wall Street 2: Money Never Sleeps[11].

Performance of stock picks and history of market calls

Cramer is a former hedge fund manager and founder/owner and Senior Partner of Cramer Berkowitz, where Jim reported a compounded "rate of return of 24% after all fees for 15 years" at Cramer Berkowitz. He retired from his hedge fund in 2001, where he finished with a self reported 36% return in 2001.[12]

On August 3, 2007, before the stock market fell and before the recession began, Jim Cramer can be heard in what is now known as the infamous 'Rant Heard Round the World.'[13] Cramer made a passionate plea to Federal Reserve Chairman Ben Bernanke to consider cutting interest rates and, in turn, help the market and the people who are losing their jobs on Wall Street.

On July 8, 2008 Jim brought up the possibility of bank failures. In his article, 'Look At The Facts'[14] Cramer said, "The losses are increasing, the auction-rate preferreds are now biting, the mortgage implode-a-meter now measures how many home-builders are going under." The following day on July 9, 2008, during a segment on Mad Money Cramer again pointed out the forthcoming Financial Collapse. "Most frightening," Cramer said, "is the silence from those in the government who could take action but haven't. If silence means there is no plan, that's trouble for everyone."[15] A few months later on September 15, 2008, the beginning of the market meltdown occurred.[16]

On Hardball with Chris Matthews for September 19, 2008, Cramer suggested, "It's not too late to be on the sideline." On this day the Dow was resting at 11,388.[17] Cramer spoke again on the Today Show on October 6, 2008, suggesting to investors, "Whatever money you need for the next five years, please take it out of the stock market."[18] By February 24, 2009 the Dow was down to 7,351; since Jim Cramer's first warning to investors the DOW plunged some 3,000 points.

Dispute with the White House

On March 2, 2009, Jim Cramer drew the attention of some critics after his evaluation of President Obama’s spending plans and the administration’s handling of the banking crisis. Cramer’s name came up on March 3 during a White House press briefing after Cramer said that Obama was responsible for “the greatest wealth destruction I have seen by a president.”[19] An offended White House shot back.[20] Press Secretary Robert Gibbs said, "I'm not entirely sure what he's pointing to make some of the statements." When pressed further by NBC's Tom Costello, Gibbs said, "If you turn on a certain program it's geared to a very small audience [...] And you can go back and look at any number of statements he's made in the past about the economy and wonder where some of the backup for those are, too."

On March 5, Jim Cramer responded to the White House.[21] He rebuked, "Huh? Backup? Look at the incredible decline in the stock market, in all indices, since the inauguration of the President, with the drop accelerating when the budget plan came to light because of the massive fear and indecision the document sowed: Raising taxes on the eve of what could be a second Great Depression, destroying the profits in health care companies, tinkering with the mortgage deduction at a time when U.S. house price depreciation is behind much of the world's morass and certainly the devastation affecting our banks, and pushing an aggressive cap and trade program that could raise the price of energy for millions of people. The market's the effect; much of what the president is fighting for is the cause. The market's signal can't be ignored. It's too palpable, too predictive to be ignored, despite the prattle that the markets predicted far more recessions than we have."

Cramer questioned criticism he received which he explained makes him "uncomfortable being in the crosshairs of columnists and comedians I enjoy."[22] Cramer asked, "So, why after toiling in the cable wilderness for four years with Mad Money am I the target of the wrath of the Obama clan, and the darling, albeit surely momentary, of the Obama-critics? After all, my criticism of Obama's handling of the economic crisis is a lot less pointed than my withering August 2007 'They Know Nothing' meltdown[23] against Ben Bernanke[24] and the previous administration's handling of the economic crisis."

Criticism

John Stewart

On March 12, 2009, Jim Cramer appeared on The Daily Show with Jon Stewart.[25] Stewart reiterated earlier claims regarding the CNBC host's "silly and/or embarrassing and/or stupid financial observations."[26] Moreover, he claimed CNBC shirked its journalistic duty by believing corporate lies, rather than being an investigative "powerful tool of illumination."[27] For his part, Cramer disagreed with Stewart on a few points, but acknowledged that he could have done a better job foreseeing the economic collapse: "We all should have seen it more." [28]

Stewart also discussed how short-selling was detrimental to the markets and investors. Cramer admitted to Stewart that short-selling was detrimental, stated his opposition to it, and claimed that he had never engaged in it. He said, "I will say this: I am trying to expose this stuff, exactly what you guys do, and I've been trying to get the regulators to look at it."[29]

Wachovia

On September 15, 2008, Cramer invited the CEO of Wachovia on his show, Mad Money, in order to recommend the stock to potential investors.[30] Cramer agreed with CEO Robert Steel that the company was fundamentally sound and that the ratio of good loans to bad loans was low. Cramer would recommend the stock to his viewers before Citi announced their intentions to acquire Wachovia's banking operations. On Monday, September 29, Wachovia's share prices dropped over 95% in the pre-market and over 80% in market hours following news of a possible Citi acquisition. [31] Prior to this, Cramer had stated, "This is run by Bob Steel. He's as close as we're going to get to a great banker. I think he's going to make this a great company. "[32] Eventually, Wells Fargo would purchase Wachovia for $15.1 billion in an all stock deal leaving Wachovia shareholders with 0.1991 shares of Wells Fargo for every share of Wachovia stock, resulting in a large decline in stockholder value.[33] In 2008, Wachovia shares declined 88 percent.[34]

Frank Rich

Referring to charges leveled against Jim Cramer by The New York Times' Frank Rich on March 8, 2009, Cramer said, "I called out [Paulson[35] and Geithner[36]] for their mistakes, where was Frank Rich praising me on that? Where was that?"[37]

On March 9, 2009, during a segment on Mad Money,[38] Jim Cramer said Frank Rich "chastised me for endorsing Wachovia's stock after then-CEO Bob Steel came onto Mad Money and spoke positively about the bank." After the bank collapsed, Jim Cramer reminded viewers that he takes pride in "the part about accountability,"[39] and is the first person to admit when wrong. Cramer mentioned, "Look, I was taken in, the guy pantsed me. I made a mistake. The SEC is investigating Steel's appearance on the show for truthfulness, though. I made a mistake, but they're investigating him to see if he lied. Bigger issue. Sometimes you just get had."[40]

Jim Cramer apologized both on Mad Money and on the Today Show for believing in Steel.[41]

Biographies

Jim Cramer's Rules for Investing and Trading

References

  1. ↑ 1.0 1.1 1.2 Michael A. Kowalski (Spring 2008). Cramer, James J. (Jim). The Pennsylvania Center for the Book. Retrieved on June 6, 2009.
  2. ↑ 2.0 2.1 "Jim Cramer", International Speakers Bureau. Retrieved on June 6, 2009. 
  3. ↑ Springfield Township High School. publicschoolreview.com. Retrieved on June 6, 2009.
  4. ↑ 4.0 4.1 4.2 4.3 "The Mad Man Of Wall Street" BusinessWeek, 31 October 2005.
  5. ↑ Jim Cramer biography, Library of Congress.
  6. ↑ A Rather Sedate Jim Cramer Reacts to Spitzer Prostitution Revelation | NewsBusters.org
  7. ↑ http://www.usnews.com/usnews/biztech/articles/070218/26eecramer_2.htm
  8. ↑ Jim Cramer. Mad Money Manifesto. CNBC.
  9. ↑ Jim Cramer. About Mad Money. CNBC.
  10. ↑ Carlo Dellaverson. "Cramer In 'Iron Man'", CNBC, Friday, 2 May 2008. Retrieved on Friday, 2 May 2008. 
  11. ↑ New York Times, 7.9.2009
  12. ↑ CNBC TV Profiles - Jim Cramer
  13. ↑ Jim Cramer. "Cramer's Rant, the Anniversary", CNBC, 07/29/08. Retrieved on 07/29/08. 
  14. ↑ Jim Cramer. "Look at the Facts", TheStreet, 7/8/08. Retrieved on 7/8/08. 
  15. ↑ Derek Erwin. "A Tribute to Jim Cramer's Mad Money", A 1-In-100 Blogger, 03/17/09. Retrieved on 03/17/09. 
  16. ↑ Andrew Ross Sorkin. "Lehman Files for Bankruptcy; Merrill Is Sold", The New York Times, 09/15/08. Retrieved on 09/15/08. 
  17. ↑ Jim Cramer. "'Hardball with Chris Matthews' for September 19, 2008", MSNBC TV, 09/19/08. Retrieved on 09/19/08. 
  18. ↑ Michael Inbar. "Jim Cramer: Time to get out of the stock market", Today MSNBC, October 6, 2008. Retrieved on Oct. 6, 2008. 
  19. ↑ "Cramer to White House: Wealth Destruction Is Real", CNBC, 2009-03-03. Retrieved on 2009-03-03. 
  20. ↑ "White House Knocks Jim Cramer For Calling Obama Budget "Greatest Wealth Destruction By a President"", CNBC, 2009-03-03. Retrieved on 2009-03-03. 
  21. ↑ "Cramer: My Response To The White House", MainStreet, 2009-05-03. Retrieved on 2009-05-03. 
  22. ↑ "Cramer Takes on the White House, Frank Rich and Jon Stewart", MainStreet, 2009-09-03. Retrieved on 2009-09-03. 
  23. ↑ "Jim Cramer's famous rant about the "know nothing" Fed.", NBC, 2007-07-29. Retrieved on 2007-07-29. 
  24. ↑ "Cramer: Bernanke, Wake Up", NBC, 2007-03-08. Retrieved on 2007-03-08. 
  25. ↑ Daily Show interview of Jim Cramer. The Daily Show with Jon Stewart. comedycentral.com (2009-03-12). Retrieved on 2009-03-14.
  26. ↑ "CNBC's Jim Cramer Responds to Jon Stewart's Response to CNBC's Jim Cramer", Comedy Central, March 10, 2009. Retrieved on March 10, 2009. 
  27. ↑ Stewart hammers Cramer on `The Daily Show'. My Way News (2009-03-13). Retrieved on 2009-03-13.
  28. ↑ March 12, 2009: Jim Cramer Unedited Interview Pt. 2. Comedy Partners (2009-03-12). Retrieved on 2009-03-12.
  29. ↑ Out with Cox, in with Uptick Rule. CNBC (Friday, 21 Nov 2008). Retrieved on Friday, 21 Nov 2008.
  30. ↑ It Did Happen! - Cramer's Mad Money.
  31. ↑ WB Historical Prices.
  32. ↑ Mad Money Lightning Round': Wait for Wachovia.
  33. ↑ Wells Fargo Buys Wachovia for $15.1 Billion.
  34. ↑ Wells Fargo's Push East Slowed by Wachovia Defections.
  35. ↑ Jim Cramer. "Cramer's 'Mad Money' Recap: Dec. 16", TheStreet, 12/16/08. Retrieved on 12/16/08. 
  36. ↑ "Cramer: Where the Heck Is Tim Geithner?", CNBC, Friday, 20 Feb 2009. Retrieved on Friday, 20 Feb 2009. 
  37. ↑ "No Respect: Cramer Criticizes His Critics", CNBC, 2009-10-03. Retrieved on 2009-10-03. 
  38. ↑ "No Respect: Cramer Criticizes His Critics", CNBC, 2009-09-03. Retrieved on 2009-09-03. 
  39. ↑ All Press is NOT Equal in Value!. A 1-In-100 Blogger (2008-21-10). Retrieved on 2008-21-10.
  40. ↑ "No Respect: Cramer Criticizes His Critics", CNBC, 2009-09-03. Retrieved on 2009-09-03. 
  41. ↑ "Jim Cramer: "I Screwed Up. I Apologize"", TVNEWSER, 2008-30-09. Retrieved on 2008-30-09. 

External Links

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