Jim Cramer blames a ‘group of complete morons’ for blowing up the market

“Jim Cramer, CNBC’s ‘Mad Money’ host and resident ‘booyah’ button pusher, isn’t exactly known for measured takes on the stock market,” Shawn Langlois reports for MarketWatch. “And Thursday morning, with the Dow Jones Industrial Average in full retreat, certainly was no different.”

Langlois reports, “The former hedge-fund manager blamed a ‘group of complete morons’ trading leveraged volatility products for ‘blowing up’ everything.”

“While he didn’t call them out by name, he could have been referring to that guy on Reddit who lost $4 million playing the XIV,” Langlois reports. “Or maybe that former Target manager who is trying to recoup his losses by placing a $600,000 bet against volatility.”

What bothers me is the people who have never looked at a stock and don’t know how to analyze it [are] out in full force today. They’ve never been better about not knowing anything about the stocks… They got it all figured out. – Jim Cramer

Watch Cramer’s full rant here.

MacDailyNews Take: Yup.

“They’ve never been better about not knowing anything.” Gotta love it!

Profit from the painfully gullible.MacDailyNews, December 26, 2017

30 Comments

  1. Be fearfull when people are greedy and greedy when people are fearful

    Warren Buffet

    This is the tremor before the Earthquake, be warned people the crash will make 2007 look like something small. Millions are going to to wiped out financialy

    1. To say this is THE tremor before THE Earthquake is quite prescient.
      To say the debt won’t come a calling one day is blind, but to chicken-little your servants this day, Oh Dan, please give just us a crumb of reason explaining why the disaster will befall us so soon. Do I have time to pack my Apple TV?

    1. There is a Huge difference between gambling and wise investing ..
      You remove the knowledge and the intelect out of an investment , (basically the brain part)
      it becomes gambling.

      Nothing in life is certain..
      One makes bets everyday…every time a decision is made.. .. even deciding to drive to a grocery is a bet.. .. one may die in an accident.. thats just life.
      But studying the risks.. understanding the environment …Using your brain while making bets is where the difference come in.

      And thats what Cramer is refering to..
      Morons… dime a dozen in this internet age..

      1. Yes, there are way too many people out there that haphazardly play in the stock market.

        But, to think of it — and trying to get others to think of it — as anything other than legalized gambling is delusional.

        If you believe you have it figured out; if you think you have studied the risks; if you think you understand the environment; did you accurately predict the market trends as a whole or for a specific stock such as AAPL last Thursday for the events of the last several days?

        I doubt it. If you had precisely predicted the past several days you would be much, much richer (there are ways to make a killing when the market goes down if you get in front of the downturn). Since you’re not bragging about making such a killing, I have to believe you haven’t studied the risks and you don’t understand the environment.

        It’s all just an educated GUESS. Nothing more. Some guess better than others, but no one guesses right all the time. It is just informed gambling after all. (Which really is no different than a high stakes poker game… play the player not the hand.)

        1. Wrong… i understand my envirnoment enough and its risks to have survived 20 years in the market..and on top made some money ! if i had panicked and sold i would have lost and been wrong. Gone through at least 3 major turmoils…

          “Since you’re not bragging about making such a killing, I have to believe you haven’t studied the risks and you don’t understand the environment.”
          Fantastically presumptuous statement with a very poor logic..
          You have no clue what i do or dont. As in Zero! Approach the market with the same confidance about something u have no clue about and be presumptuous…. then ‘yes’ you would be Gambling bigtime…..And probably lose your shirt too.
          And that’s whats going on out there… too many risk takers making stupid ignorant call and decisions.
          (Example…Like having an idiot irresponsible skier endengering everyone on a slope . Or a an idiot driver endengering others on the road …. etc. !)

          One can not time the stock market and every stock movement perfectly…. everytime .. u cant do that to anything in life! But knowledge and discipline can minimize the risks.

          As for your other comment “But, to think of it — and trying to get others to think of it — as anything other than legalized gambling is delusional’
          Then you have to accept that same holds true for everything in life!
          But yet most go on using their brain and making decision all day long… confronting challanges and pushing forward.. through knowledge, hard work and measured risk taking…rather than hiding under a rock or jumping in a pool without looking if there is water in it ….. Those who hide, get nowhere …..and those who jump without looking break their necks.

          The idea is not that one has to be perfect…. it is to be more right than wrong… Due Diligence has a lot to do with it.(I doubt the same applies to roulette)

          I dont day trade.
          I invest for the long run…. in companies with good fundamentals and industries that i can understand and get a feel for.
          I dont proclaim to be able to predict every little ripple… .. or wave… yet i understand my environment enough and trust my discipline and strategy enough not to panic and freakout on every turn. ( do you sail ?)
          I believe cool heads prevail …. and in moments of panic in the market … opportunities can arise .
          That’s a far cry from gambling. Verrry far.
          Or playing roulette.

          At the end .. is life risky?… Yes .. Do knowledge/information and due diligence reduce the risk … yes! It is what it is.

          Anyways Shadow…. take a look at this chart… notice the average blue line?
          Long run folks , invest for the long run .

          1. it’s a 100 year picture of goodness portrayed and most people have a solid 30-40 years in the market…at best. This assumes an income level that allows for a healthy portion to invest. And w/o self-control/discipline forget about it. This leaves the vast majority to experience the stock market as a gamble, with a pretty good chance they’re not going to get in/get out at a favorable time. You have to have money to make $$ and if you don’t have a lot to play with, it’s a so-so medium for gain. I’ll take real estate any day for all its benefits, opportunities and relative safety.

            1. Yes, that 100 year graph is highly misleading – particularly since the tie that people have in the market is even narrower than a “30-40 year” window.

              For it goes like this:

              Period 1: roughly 30 years where they’re working and saving (making deposits into their savings): for this, the ups & downs don’t really matter too terribly much.

              Then they retire.

              Period 2: a quite variable duration (typically 10-30 years) where they’re now living off of their investment savings. They now need two things: a reasonable Return (% yield) and NOT to have a correction/crash which wipes them out.

              Granted, one can hedge against the latter through bonds and conservatism, but that Yield problem is the quiet killer: now look back at that 100 years Stock Market graph and you’ll see periods that are 10 and even 20 years long where its flat.

              Point being …

              Envision having the bad luck timing where you retire at age 60 just as one of these 20 year flats starts again.

        1. Life is all based on chance AC… every single decision one makes has chance involved in it.
          Yet we go on doing our best.

          if one is a flip flop impulsive trader yes…. they will be subject to many manipulations…
          But In the long run with due diligence and with good disipline.. its very hard to get manipulated.

          For those who call the market a gamble… i say hey its no differant than anything else in life . Future is always uncertain. Why just pin point the market.

          I dont see playing roulette and wise investing in market being the same… no where near .

        2. But the market does behave semi-predictably over sufficiently long periods of time. And INVESTING isn’t gambling when you follow the lessons of those numbers. Speculation is gambling, but while both can be done on the stock (and other) markets, again Investing according to what can be known about the process is different than speculation – which relies on touts, hunches, “gut feelings” and short-term trends.

          Buying and holding index funds with an allocation based on your age and other circumstances you’ve looked into and studied isn’t sexy and won’t make you THE richest guy in town, but it IS investing.

          Buying Bitcoin because it’s the hot thing and you don’t know jack shit about its fundamentals is speculating.

          Which is why portfolio diversification and a long-term strategy are superior by far to any stock selection, market timing and/or exotic instrument strategies for the great majority of investors.

          I haven’t bought or sold anything in years, do okay during sharp downturns compared to many and over 30 years have been making over 7% in nearly all ten year periods you can pick. And I’ll take that, thank you.

          Naturally, there are many kinds of disasters (or revolutionary breakthroughs) which could be bigger than all of these trends, but even those with a diversified portfolio before the 1929 crash who held through the Depression and beyond eventually did quite well over time.

          And the market’s survived many wars, booms and recessions since then.

          1. If there is more risk than mathematical or scientific certainty, it’s gambling. All you’re telling me is about the odds. That’s all I’m telling you too.

            People and markets are far too unpredictable and behave according to loose rules, if they behave according to rules at all.

            Now, not to fully discount what you and Jimbo say, but your laying out behaviors of good gamblers, but they are gamblers..

            I even used to sell my stock option soon as they got sufficiently above water. Anyway, I don’t play the market at all any more than I would go to a Trump Casino. Not that I don’t have vices, believe me, I’m no angel, and I wouldn’t begrudge you from doing as you wish.

  2. So the following are stating the stock market is a Bubble wake up people:

    Alan Greenspan – Head of FED 2007
    Micheal Pento – investor
    Jim Rodgers – famous investor
    George Soros – billionaire investor
    Carl Ichan – billionaire investor
    Ray Dalio of Bridgewater Associates – manages $102
    Billion
    Elliott Management, one of the world’s largest hedge funds, with $34 billion In ivestments
    Jacob Rothschild

    These are some of the big players ringing alarm bells

    1. Depends on the stock..
      A stock with a peg of 0.7 and pe of 14 is no where near a bubble..

      Most people are panic oriented and lemmings..
      Its a self fullling prophecy of some sorts..
      What’s happening out there is panic due to ignorance.. fear !

      Keep cool heads!
      Many will try to manipulate your ever cent away from u by any means they can .
      Fear and panic is what they are betting on !

  3. Cramer is the moron. He ignores all the horrific problems in the markets — record levels of leverage, margin use, etc. (just read David Stockman or Charles Hugh Smith) — and whined when the market crashed that government should come to the rescue. The casino is overvalued and will crumble again.

  4. Cramer LOVED the market at the height of the dot com bubble. Yammered away about this and that NASDAQ stock. And it took over 15 years for that index to get back to 5,000.

    People who get moved by a guy shouting at a camera are going to make costly impulsive moves like as not.

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