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Jim Cramer's meltdown was juvenile

Posted Aug 7th 2007 8:17AM by Georges Yared
Filed under: Rants and raves

Jim Cramer made a complete fool of himself on television yesterday. Erin Burnett of CNBC was trying to have a civil and informative conversation with him when he lost it. She wanted to discuss the already fragile credit markets when Cramer let loose a tirade that Federal Reserve Chairman Ben Bernanke was playing "academic games."

Wake up Cramer. The Federal Reserve rarely reacts to a couple of lousy weeks of trading in the markets. The Fed reacts to economic conditions and not volatile market conditions. Cramer shilled for some of his Wall Street buddies that are facing tough times. " I speak to them all day" he said. No kidding Jim. I am sure Fed boss Bernanke speaks to a few people too.
I speak to portfolio managers and trading desks all over the world on a daily basis. Yes, those that trade fixed-income paper may have a really crummy year and -- as is the Wall Street way -- jobs may be lost. We don't hear Cramer screaming and yelling when Wall Street is hiring en masse, just when it lays off people. Traders know how the game works: feast or famine. Traders prefer this, as the feast is quite often seven-figure bonuses. The famines can last a year and then they land with another firm as the feast is perceived to be arriving.

Cramer has passion, but in this case it was misguided. He allowed the rants of his trading-desk buddies to get to him. Cramer hurt his supposed objectivity, especially when he threw out the term "Armageddon." The word Armageddon was the trading-desk world mantra this past Thursday and Friday.

Georges Yared is the CIO of Yared Investment Research.

Tags: CNBC, inthenews, Jim Cramer, JimCramer, Mad Money, MadMoney

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