June 14th, 2006

Dear Jim Cramer

Dear Jim Cramer,

I’m feeling sorry for you, Jim, because it looks as if you’re trying to fit a size 14 foot into a size 7 shoe. You have to adjust. Don’t you know that something that works in a bull market just might not work in a bear market. Your antics like trying to cut the heads off miniature bulls with a Bowie knife or slugging a piƱata with a baseball bat or swinging at a box of Uncle Ben’s Rice to try to “get even” with Ben Bernacke are “cute and entertaining” but not what your audience needs right now.

I know there’s another, less manic, side to you since I’ve seen you in other roles (like when you were on Meet the Press). You, or your staff, are innovative and have improvised before. You created the current crazy format, you popularized the Lightning Round, you took your shtick to
college.

Yes, “there’s always a bull market somewhere” and they’re relatively easy to find when, in fact, the market is in bull mode. Unfortunately, it just doesn’t play well in a world-wide bear market when about the only safe thing for the average investor to do is be in cash, in puts or short stocks and ETFs.

I know you’re constrained because of restrictions against promoting short selling but I trust your instincts and creativity. Adjust and change the format! If you don’t you’re putting whatever credibility you have left at risk (even more than it already has suffered by being a perennial stock “touter”). Trying to shift the blame on Bernacke is lame. As you well know, this correction probably would have taken place without a change in the Fed Guard and then everyone would have been blaming Greenspan either for not tightening fast enough in the face of a flood of too many dollars or of tightening too much in the face a softening economy.

If Cramerica is to survive through this bear market then you need to stop trying to be the comedian and, at least until we weather this bear market, be a stateman more like Rukheyser. The situation needs a steady hand and level head. And you’re not providing the sort of guidance investors need right now.

Draw on your years of experience and compare this market with past markets, its differences and similarities. You should now be helping investors know when we start approaching the bottom and what to do then. Shift your focus from pushing individual dogs (like RDA … I still can’t believe it!) to tools, techniques, processes. What’s wrong with speaking with some technicians, they picked this top long before you did and now have some ideas on where the bottom might be. You might even invite some differing opinions. Or are you afraid that if you expand your viewers’ minds they’ll stop following you like sheep to the slaughterhouse.

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  • Howard Lindzon

    awesome. I will link to it. He i opening the dorr to get crushed and he should be ashamed of himself with all his money, talent, and time.

  • Roberto

    Don’t you realize that everything Cramer is, does, and says is calculated and done on purpose? You think he isn’t totally aware of what he is doing?

  • Jayant Rajwade

    i fully agree with this. Also let me tell you this is a very interesting and useful blog. I have started a blog on similar lines, to be in touch and share my knowledge with the trading community. Visit my blog and let me know of any suggestions to improve it further.

  • Anonymous

    Unfortunatly when you become a celebrity your ripe for the shots. Of course Cramer is calculated, his Trust has rules and regulations and follows them. Investors are told to wait 3 days or more before buying recommended stocks. Market orders are discouraged as well. On the opposite end of the spectrum you have viewers that are shall we say impressionable. If they tend to be short term memory mongers and go out and buy a stock good for the market. Remember someone makes money on either side of the equation, so a stock going down is not a bad thing unless your totally in just one stock. Then the problem is with you and not Cramer. Sadly, I think that you’ve picked on the best tv personality in this area of investing. Would you trash anyone one on FoxNews from Bulls and Bears to Cashin In. Cuvuto there is a guy you should aim at, hes a real scum bum.

  • itsdex

    Yes, and this is one big bear that’s coming.

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