Cramer Yesterday

F. Bruce Abel
copyright 2008

Did he or didn't he say that common shareholders of Bear Stearns should not get out, see earlier blog. It was implied, but in the context of the email he was telling the listener not to get his MONEY (not money in stock) out.

See, I think he's unnecessarily dissembling. Conditions had so changed by that Friday that he was right in saying Bear was worth zero at that point (Friday). So his call earlier in the week could be justified.

But what does this tell us? All these "numbers" put up by accountants, fawned over by Wall Street and a whole lot more, can be wiped away by deeper scares. The numbers showed (and still show) that Bear is worth many billions. But not if there are a lot of obligations off the balance sheet that never had to be reported because some (maybe weak) player guaranteed a recovery in case of underlying loss.

It's torward the end of the clip that he gets into the topic of interest.

http://www.thestreet.com/story/10409025/1/cramers-mad-money-recap-the-big-bang.html

Following Cramer is like believing in the Bible. There are depths of knowledge of the listener. But bottom line: you just don't know.