Cramer v. Obama

by Sal on March 4, 2009

in Economy,Politics

A war of words has been ignited between CNBC Financial Analyst Jim Cramer, host of Mad Money, and the Obama Administration.  Yesterday, Cramer lambasted the Obama administration for completely destroying the economy, stating that, among other things, we elected a Lenonist:

When asked about this, press secretary Robert Gibbs responded by insulting Cramer without refuting any of his facts:

If you turn on a certain program it’s geared to a very small audience. No offense to my good friends, or friend at CNBC. But the President has to look out for the broader economy and the broader population.

Today, Cramer fired back, pointing out that Wall Street and Main Street depend on each other, and that wall street is a major part of the broader economy.

Cramer is absolutely right.  Obama has declared a war on wealth and the investor class, which now makes up the vast majority of Americans (consider also that most pension plans have ties to the stock market).  The market is in a freefall, and the Obama administration is doing nothing to except work to expand the size of government.  The market has been showing it’s confidence in his policies by continuing to drop.  With the way things are going, some are beginning to wonder if we are indeed headed towards a depression (defined as a loss of 10% of GDP) for the first time since the 1930s.  Obama’s policies only increase those chances.

{ 12 comments… read them below or add one }

C.Thomas March 4, 2009 at 11:31 am

To say that Cramer is “absolutely right” is carless reporting of the facts. No one is “absolute” and there is not right, despite the name of this web-site. If the president pandered to the talking heads on television someone else would complain. You cannot please everyone, and no president ever has. To call him a Lenonist is also ridiculous, the situation in the country is unpresidented and the solution is a long time in coming, the country would be better served if everyone would stop thier bitching about losing money and wait it out. Greed is what caused this whole situation and greed is what is fueling the ‘Rights’ attacks on Washington. The Republicans had many, many opportunities to stem the tide of the financial failures, and they did nothing, except walk away with tax payers money on a pointless war that cost this country unnessesary lives and wasteful spending of military.


Mike March 4, 2009 at 12:21 pm

What a strange comment. It’s amazing how irritated a certain left-wing blog has become with the name and design of our website in the last day and a half. Yes, this is a conservative website. We admit our point of view and post topics that explain why believe what we do. It’s that simple.

BTW, isn’t your comment that “everyone” should stop their bitching an absolute statement? Hypocrite.


Glen March 4, 2009 at 3:31 pm

What’s most amazing about this ( I happen to like Cramer – but he is way off) is that the government did not create the crisis that we are in. They didn’t write bad mortgages. They did not force AIG or Citibank or Bank of America or Lehman or Bear Stearns to run their business the way they did? It was the free market system that failed and led us to this crisis. It was greed! It was bad management! It was a bunch of BS!

In reality the free market system should fix itself without the government intervention, but as we have all come to realized, the free market system is flat on its back and desperately need the government to bail it out.

All the talking heads who are now experts should have seem this coming and warned us – but they didn’t. So please stop with the noise.


marie claire dupre March 4, 2009 at 3:42 pm

what a load a crap..


marie claire dupre March 4, 2009 at 3:49 pm

i mean all the undereducated baboons trying to say something of any value in this argument. i’d like to see this utter cretin, cramer try to rebuild a country decimated by a market that freely ran us into the ground with no oversight, a whacked out cowboy from texas blowing our budget like he did every other business he was ever spoon-fed. This other barely literate idiot, cramer, proves with each sputtering from his stinky little mouth, that has the brains and charisma of a river leach. and all you so called conservatives have radicalized our country for too long. keep digging your graves, baby.. as huffington says, if this is the ‘new voice’ of the right.. have at.. i see how it has been working for you lately… ignorance is the most frightening aspect of humanity..


Sal March 4, 2009 at 3:53 pm

I’m amazed at the amount of ignorance that goes around regarding this crisis. The Obama administration has successfully pushed the notion that it is the free market that failed, when it is only partially true. Greed was not the casue of this crisis, but rather social engineering. It was the government’s insistence on home ownership for people who could not afford them that led to this crisis. By interjecting a requirement on the banks to give out loans based on the underwriting standards of Fannie Mae and Freddy Mac (which were mandatory), banks had no choice except to give out bad loans lest they face a government sanction or lawsuit.

As these loans became prevalent, they became used as investment vehicles. Since the government was implicitly backing the loans, the value of these assets became inflated beyond their actual worth in the free market.

Additionally, much of the spiraling out of contrl has been the result of government intervention, both by the Bush and Obama administrations. The full-fledged takeover of Fannie Mae and Freddy Mac by the Government, along with the bailout of Bear Sternes and AIG put forth a moral hazard that gave other banks room to fail, with the expectation that the government would just bail them out. The government should have left well enough alone, let the banks consolidate (which would have happend but for their intervention) and the recession would have still occured but most likely have been a little smoother and less drastic.

Finally, Republicans did warn of this and try to reform it several times in the last 8 years (most notably by McCain), but each time they were blocked by Democrats in the Senate.


Mike March 4, 2009 at 4:05 pm

I disagree with Glen for all the reasons Sal gave, but at least he made an argument based on current conditions. I really hope this Marie is what the formerly-lucid Arianna would call the “new voice of the left.” Stop looking in the mirror if you’re frightened Marie.


marie claire dupre March 4, 2009 at 4:08 pm

This is a lucid article on the Fed Freddie/Fannie take over.. It was in 2002 that the feds made law that states had to allow Freddie/Fannie loans.. The feds strong-armed the states into this.. under Bush..


Mike March 4, 2009 at 4:12 pm

This gets better and better.

Sal argues that government intervention caused the problem and you come back with an argument that government intervention caused the problem. Looks like Arianna isn’t a very good teacher.


Sal March 4, 2009 at 4:23 pm

Not to mention the fact that Marie Claire got the point of the article wrong. It was that Fannie and Freddy stepped in in 2002 to prevent Georgia from passing a law to ban this sub-prime junk, not a 2002 law passed by the Bush administration. I guess that Arianna is not teaching reading comprehension to her minions.


Ryan March 4, 2009 at 4:31 pm

The stock market hasn’t been this low since 1997, when a Democrat was in the White House! (Just had to get in a dig there.)

But anyway, free markets haven’t been allowed to fail. That’s part of the problem, and I agree with Sal’s pint of view on this. Free markets fail from time to time because when one has freedom, the concept of “choice” is inherent. Companies chose to do the wrong thing and have been punished. Zillions of them did just fine and are run by honest hardworking people. The problem is that the bailout mentality only keeps the bad afloat and allows the big companies to squash the competition through their cozy relationship with the Feds. We’d be able to weather this storm better if the failures would hit bottom and the successful engines in the free market would take over quickly.

“Ignorance” is a tough word, though. I have to assume that our friends on the Left simply do not trust people, and their point of view is derived from there. They prefer ruling and controlling people. Their point of view is simply a fresh shiny 21st Century rehash of tired archaic arguments of social engineering from the 1920s and 30s. We’ve seen it in the US since Wilson — creating the idea that economic crises require the same executive power as a foreign threat in order to micro-manage the economy to build constituencies. Since the free market is so huge and intricate, the only way to control it (as John Stossel once said) is to control them (the people): the foundation of how socialism inevitably restricts freedom.

So, in a sense I disagree, Sal, that there is ignorance here. I have to believe our Leftist friends know what they are doing by mischaracterizing the arguments and blaming “greedy” capitalists for their own agendas. In true Leftist form, blaming is much more important than solving anything. They will blame Bush for everything for the rest of their lives, no matter what happens. It’s in their blood now, as we see with their incessant rearguing of the initial reasons for the Iraq War nearly 7 years afterwards, as if time is frozen there forever. They are not arguing to learning anything or explain something, they are just arguing because that’s what they now how to do.

But they are learning something since the Inauguration — it’s a lot harder to be on defense.


Joe March 5, 2009 at 1:52 pm

I agree with Sal. The administration answer is a race to becoming the USSA!


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