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Jim Cramer, the overly enthusiastic host of "Mad Money," became apoplectic just prior to the market's collapse on Friday afternoon on his CNBC "Stop Trading" spot. Cramer's ranting focused on the need for the Fed to drop rates to save humanity. It came across more that the Fed needed to drop rates to save Jim Cramer's portfolio.The reality of the situation is if the Fed had to desperately lower rates, gold would be crashing, as was the case in the late 1990s. It is interesting looking back to what everyone was calling the Goldilock's economy then, and seeing that gold was saying otherwise. Gold proved to be correct. Remember that in 1998, oil sold for only $10 a barrel.
Today, the opposite is true: gold has formed a plateau in the $600 price range and oil demand remains strong, with its price approaching $80 per barrel.
All told, despite Cramer's ranting, liquidity is getting a little tighter and the Fed should begin dropping rates in October. I wouldn't worry too much, the sky is not falling despite what Cramer may say.
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Reader Comments (Page 1 of 1)
8-06-2007 @ 12:01PM
William Martin said...
l'm glad you described "Fireball" Cramer as "ranting" the other day. I quit watching him because he began to stress me with his loud mouth ranting and raving. I don't really care if he knows what hes talking about or not, I just can't bare to watch him anymore. Also I've already commented about him appearing very thin recently. I hope he does not have worms like they did back in the depression days. Maybe he needs to have his doctor check this out?
8-06-2007 @ 9:57PM
JPV said...
He's probably getting skinny from all the coke or speed that he's doing to keep up that stupid high energy act of his, especially at his age.
8-21-2007 @ 7:56AM
erwin said...
craemer is nutz
he wants to be right
butt is no better on his calls than the boy with the dart board
as for gold
miss it you will lose as your paper money fails
8-21-2007 @ 10:14AM
RT said...
oh on!!!! cramer "foamed at the mouth"?!?!?!?!?! and this makes news???? hellooooo...look if ya'll want the canned version, ie: a talking suit who babbles out the same crap every week then fine...you got a remote use it. passion is good. have a great day! find your own passion.