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Video: Jim Cramer from Mad Money Says PULL OUT of Stock Markets

by admin on October 6, 2008 · 2 comments

President Bush’s 700 billion bailout plan is not working because few have confidence the plan help and banks are not increasing lending. Furthermore, the bailout plan has yet to hit early benchmarks Paulson outlined during Capitol Hill testimony, as evidenced by additional moves from the Bush administration and Treasury Department to reinforce current economic policy “with substantial force on a number of fronts.”

Dow Falls Below 10,000 for the First Time in Years.

Dow Falls Below 10,000 for the First Time in Years.

“There is simply too much debt for world governing bodies to contain,” noted the committee assigned to monitor high level investment lending.

Financial guru, Jim Cramer, warns that investments could lose 20 percent of their value as he strongly urges investors to pull out.

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In what Curry, the host of NBC’s Today called a “dramatic statement,” Cramer emphatically urged any investor to pull their dough out.

“I thought about this all weekend,” Cramer told Curry. “I do not want to say these things on TV.

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Video – Oct. 6: TODAY’s Ann Curry talks to CNBC’s Jim Cramer, who advises pulling out the stock market.

[youtube=http://www.youtube.com/watch?v=66bEc8creZo]

“I don’t care where stocks have been, I care where they’re going, and I don’t want people to get hurt in the market,” Cramer told Curry. “I’m worried about unemployment, I’m worried about purchases that you may need. I can’t have you at risk in the stock market.”

Still, those with the assets — and the stomach — to ride out the stock market’s ups and down over a five-year period might be best served by holding their nose and holding onto their stocks.

“I think what you have to do, if you can withstand it, is just ride it out,” Cramer said.

Cramer’s gloomy scenario came from calculating individual Dow stocks and estimating how far they might yet fall, he told Curry. And companies’ third-quarter earning reports, due this week, aren’t going to be music to investors’ ears.

“I think the previous quarter, the one we’re now hearing from, was a terrible quarter — but it will look good versus the coming quarter,” Cramer warned.

$8,000 for Every Family in America

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In remarks made at a National Association for Business Economics conference Sunday, former Treasury Secretary, Lawrence Summers said it’s “overwhelmingly likely” that the current period ultimately will be deemed a recession. “What I think is a certainty is that it will feel like a recession to virtually everyone.”

Mr. Summers said he’d be “pleasantly surprised” if the unemployment rate doesn’t exceed 7.5% at some point during the slowdown. At 2.5 percentage points above the normal unemployment rate, a conservative Okun’s Law calculation suggests a 5% loss in the nation’s economic output. That, he explained, translates into a $750 billion annualized shortfall in gross domestic product, or a loss on average of $8,000 for every family of four.

Update: 11:19 AM Eastern

Update: 11:39 AM Eastern

Update: 11:49 AM Eastern

Update: 12:01 PM Eastern

Update: 1:18 PM Eastern

Update: 1:48 PM Eastern

Update: 2:00 PM Eastern

Update: 2:12 PM Eastern – Now nations are at risk, up first: Pakistan.

  • Pakistan facing bankruptcy – Pakistan’s foreign exchange reserves are so low that the country can only afford one month of imports and faces possible bankruptcy

Update: 2:20 PM Eastern

Cramer Speaks Again:
[brightcove vid=1838513433&exp=1079049304&w=510&h=550]

Update: 2:52 PM Eastern – The Bailouts Has Failed

Update: 2:55 PM Eastern – Nasdaq Falls

The slide continues. With a little over an hour to go, the Nasdaq Composite is still rolling downhill, falling 167, or 8.6%, to 1,779.99. Here’s a sample.

  • Microsoft (MSFT): down $1.93, or 7.35%, to $24.39;
  • IBM (IBM): down $6.03, or 5.83%, to $97.41.
  • Apple (AAPL): down $7.41, or 7.63%, to $89.66;
  • Intel (INTC): down 90 cents, or 5.2%, to $16.41;
  • Hewlett Packard (HPQ): down $2.97, or 6.91%, to $40.03;
  • Cisco (CSCO): down $1.67, or 7.86%, to $19.58;
  • Oracle (ORCL): down $1.98, or 10.16%, to $17.50;
  • Qualcomm (QCOM): down $2.67, or 6.53%, to $38.20;
  • Comcast (CMCSA): down $1.16, or 6.31%, to $17.20;

    Dow Falls 800 Points.

  • Research In Motion (RIMM): down $6.41, or 10.52%, to $54.55;
  • Dell (DELL): down 81 cents, or 5.31%, to $14.44;
  • Yahoo (YHOO): down $1.30, or 8.13%, to $14.70;
  • Sun (JAVA): down 53 cents, or 7.85%, to $6.22;
  • Advanced Micro Devices (AMD): down 49 cents, or 10.81%, to $4.04.
  • First Solar (FSLR): down $22, or 13.48%, to $141.19.
  • Sunpower (SPWRA): down $8.39, or 12.4%, to $59.27.
  • Nvidia (NVDA): down $1.66, or 18.38%, to $7.37.
  • Garmin (GRMN): down $1.97, or $6.86%, to $26.75.

Update: 2:55 PM Eastern

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{ 2 comments… read them below or add one }

ggaudet October 6, 2008 at 2:04 pm

“The financial rescue package contains a provision that permits troubled financial institutions to apply for insurance (federal guarantees) and could prevent an outlay of $700,000,000,000. Furthermore, it can cut interest rates substantially, keep troubled homeowners in their homes, and certainly end the credit crunch,” says Michael S. Zarin, President, Wellfleet Investments LLC.

If you listen to only one program about the financial crisis that the US and the World faces, listen to this!

Michael lays out the case for a provision in the new Bailout Law that will allow the US Government to get us out of the credit crisis without spending the $700 billion.

Listen to this podcast and spread the word… More people need to know about this!

http://politalkblog.wordpress.com/2008/10/06/special-episode-of-politalk-the-bailout-bill-insurance-program/

Reply

sandysays1 October 6, 2008 at 3:20 pm

Yep and its going to get worse thanks to the media spreading panic it as they lobied for the passage of the Wall Street Welfare bill.
See SandySays1.wordpress.com to strike back.

Reply

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