Cramer melts down. Markets, too? iTulip.com

[mightybaboonking]

Great video. At least the music will get better if there's a crash. Boomtime music sucks, just think of mid eighties.

[JackNeedles]

We need Ron Paul to save us!

[lennyfest]

Imagine going to the bank and asking, "I'd like to open an account for minus (-)$100K". After years of deposits adding up to $100K you will have $0 in the account. Silly isn't it? Well that is exactly what you will be doing if you bought a house right now. Maybe a little more, or a little less, but either way doesn't sound too good does it? DONT BUY REAL ESTATE BE SMART

[TYX91101]

It's all about saving face. He's got a lot of people in deep over their heads. Consequently, he's got to point the finger at somebody. You might remember his vignette as a mild mannered, well reasoned commentator on Kudlow & Cramer - then his rebirth as the mad money man in a straight jacket. Pathetic.

[Led7Zepp]

You ever notice that when ass crammer spam's a stock it goes up short term. You'll also notice a lot of aftermarket purchases before the show comes on. Who are these people that get tipped in on his stock picks and do aftermarket trades?  Maybe I'm wrong and it's a figment of my imagination. Cramer... you are shame... you are shameful! LOL

[bikeforfree]

Nicely done.. I watched this directly after the uncut clip.. and the music is nice, like the carefree good ol' days :D

[daverocks11]

brilliant video. great job.

[AndyMann0007]

Dot Com bubble

Housing market bubble

The actor who played Kramer looses it.

Cramer looses a little money & still has more afterward than the average American and he has a childish, unintellectual meltdown...

We must never forget the dot com crash cause housing is next - it's long overdue!!

[vladastorian]

ok guys i dont work in finance but i am a small investor that tries to use logic to invest, the market and MSNBC's show hosts ,hugely expect a rate cut , but... if the fed follows the crying of less rich firms will it restart the greed bonanza ? for a bigger blowout later? and would it be politicaly preferable for the republicans that it blows right when a democratic administration is in power?.

[itulipdotcom]

You are certainly thinking about this the right way. This is a political process not a mechanical econometric phenomenon. Let's see, now. Carter was hammered by Paul Volcker's anti-inflation fight that ushered in Reagan. It's been falling interest rates and inflation and rising deficits ever since. That was over 30 years ago. Guess what comes next?

[snocamo]

Think of the stock market like a big poker game. The game owner of the table know a good thing when they see it (The Fed as you hear it call on the news), so when their players start running out of available cash, the Fed gives them money to keep the game going to keep the suckers (you, btw) at the table. You can't beat the house because it sets the odds and creates the rules.

[snocamo]

I strongly suggest to everyone here to start researching the similiarity between the 1929 stock market crash and the current stock market of 2007. The Washington Post has a really good article about the current market conditions. Learn what a NINJA is, too. NINJA = No Income, No Job, and No Assets, yet people still got huge loans and now they can't pay the notes.

[itulipdotcom]

google search: A FINANCIAL MARKET CRASH IS A PROCESS, NOT AN EVENT

[snocamo]

It appears the process is under way, but we'll have to wait and see. The Fed will lower the interest rate a little more a few more times, taxes will rise slightly, loans will be scrutinized much more carefully(no more NINJAs), and a few mortgage broker houses go under as a lesson to the industry. We'll see. I hope it waits a few more years if it is going to happen.

[shakeyphil]

Isn't this just step one in the plan to introduce the amero and NAU?

[ybtutube]

nice!! too bad the fed decided to hear the looney instead.

[wilpal6412]

STUPID Cramer, Monday he will go Grossary Shopping and Get CLX and KO, how stupid, I remember After February 26, he had his audience buying CRX on Millionaire Competition.

[Abranchiate]

Nice captioning brother. I love the way he morphed from Mr.NoCareInTheWorld back in June to MrWhoCares in July to MrArmageddon in this. Looks like he got his discount window cut. Doubtless that will bail him out of some tight situation he and his firm put themselves in, but will it revive the structured debt markets? I don't think so...

[Led7Zepp]

I hope Cramer's asshole leaks like a sieve from Wallstreet's subprime crime.

[mangoman1972]

12.500...Buying time for dow jones....43.200 for Turkish index Imkb)...Dont cry,just buy my friends.(If you left any money of course)

[TickerShuffle]

NIIIIIIICE!!

What DEEKhead Cramer is.

[phatboyfromla]

The situation we are faced with is the very reason congress (US Treasury) was to print our currency and backed by gold. America's financial fate should not be in the hands of a group of banks charging us interest on money they simply print.

[BrandNameRE]

This may be true. Maybe the dollar should be backed by gold! I for one am extemley angry the government has let the dollar slide this much! To me it seems that only the turly rich or gifted can make enough money today to keep up with the Euro. You would have had to doubled your savings over the last few years to have the same thing today. That being said I will be in even worse finacial shape if the Fed does not lower interest rates! ALSO I am not the only one.

[ScottfromTexas]

And as for this Cramer nitwit I can't believe this gimmick has lasted so long. Infotainment at its best.

[ScottfromTexas]

Really well done! Excellent!

Since I heard about the Fed dumping money into the central banks I've been waiting for SOMEONE to mention INFLATION. Since beginning to follow Ron Paul's campaign I have tried to pay attention to these sorts of things. Seems like a market correction that will be healthy in the long term while the Fed tinkering with things will cause INFLATION and cost EVERYONE quite a bit.

[BrandNameRE]

Yes if rates are lowered it may cause some inflation. But what about the people who will be without jobs and loose their homes??? The whole idea behind the fed is that they are supposed to do what is best for everyone. An ideal situation would be one where there are no super booms and no recessions! The boom in housing should have never happened but it did and I don't think it should be considered unreasonable for the fed to keep us out of a recession!

[MisterMark123]

I could do without the music and "cute" intro. I'll keep searching YouTube until I find the real clip.

[itulipdotcom]

Why not google search "Jim Cramer fed" for the uncommented clip without leaving the snarky comment, jerkweed? Get a life.

[MisterMark123]

haha.. Made you mad.  :)

[SModikoane]

From what I understand, what Cramer is talking about is that people were given a teaser rate to help them pay off bills. They were told that they could refinance with a fixed mortgage at a better rate if they waited a year or two. However, that option has now vanished.

In most of the mortgages there is fine print that allows companies like Bear Stearns to come back and take the property to pay off their liens.

[srm2k]

Interesting predicament! The bond market is falling, rates are rising. So don't look for a rate cut to save the day this time. The Fed doesn't control anything, it FOLLOWS the bond market.

[itulipdotcom]

China, Japan, and Oil Producers control the bond market and thus U.S. rates.

[BrandNameRE]

Um when the fed puts liqudity into the market they are buying treasury bonds. This is causing demand for them making it cost more to buy one of them. When the price of these bonds go up then the rate will go down. Of course in this case where they are only putting money in without lowering rates they are only maintiang the current rate. I think if they actually lowered the rate the bond market would follow the Fed!

[FumingAnimal]

BrandNameRE, lowering rates would hurt absolutely everyone who holds dollar-denominated assets, not just the people who are overextended on their mortgages. If the dollar loses 1/2 of its purchasing power, you will feel it. Have you noticed that stuff that is not made in China has increased in price a bit in the last few years?

[itulipdotcom]

We were on a call with Goldman yesterday where ex-Fed gov Meyer implied that the Fed really didn't want to lower rates, and will use the discount window more creatively instead. Can't blame them when there's so much inflation in the system... oil over $70 vs $22 last time. If they cut short rates, long rates might actually go up due to inflation expectations.

[economistBR]

Great editing.

It was quite funny, I didn't study hard at college so I don't know much about what's going on but still quite funny.

[fallwaterblues]

that smell, that gasoline smell, smells like victory...

America, all crust, no filling.

[antihostile]

"Pigs get fat, hogs get slaughtered."

This is great but still not as funny as Gary Coleman pushing a 99.25% APR loan.

[lasoccjock]

Bull, bears, do fine in the market. Pigs get slaughtered.

Even my former hippie mother, whose idea of high finance is buying Quicken, was laughing at how absurd the non-secured mortgage industry was behaving. YEARS ago.

Screw them. Let them fail. The next generation of lenders will learn, Don't lend too much to high-risk borrowers no matter how tempting the short-term fees.

I hope that Cramer and his ilk of shills lose their shirts as well for hyping this mess. Buncha whiny cry-babies...

[matthew871]

It's the Federal Reserve that is the problem. We should never have signed over control of our money to them. We cannot have independence without control of our money.

[wasserdagger]

As of about one hour ago, the news came down that the Fed is going to stand pat on interest rates. If Cramer's head hasn't exploded, it probably will soon. lol

BTW I thought it was unseemly for Cramer to put on that hissy-fit of screaming about interest rates on a major business channel like CNBC. All parties involved in that spectacle should be ashamed. The U.S. money system needs men of discipline right about now, not more sissy-assed whiners like Cramer.

[itulipdotcom]

Looks like maybe Jim and Bill (William Poole) aren't on a first name basis after all, that Bill doesn't believe that he is behaving in a "shameful" manner by not voting to bail out Jim's friends. Appears that while the Fed will not allow any major commercial banks to go under, it will insist on seeing a few hedge funds and private equity funds fail, just to make sure everyone gets the message.

[rynato]

good. Some pain needs to be felt. If lessons aren't learned, it'll just happen again.

Shit, it'll happen again anyway. Just maybe not as soon...

[thomas592003]

I just got a BIG loan and turned it down from Countrywide:

I have a house which appraised at 5MM, Countrywide was willing to lend me 3MM on it, and then 3MM on the house next door which also apprriased at 5MM...(granted we're talking beachfront property here) but STILL!!

I turned them down...

[crabtrap]

I would like to add that I ran a nightclub for many years;i remember 2yrs ago all these kids becoming morgage brokers over night at one point 60% of the customers were Mbrokers for differant start up companies these guys were landscapers and drugdealers

weeks before. thats when i knew the shit was comming

[YUPchannel]

Hi itulipdotcom,.. well it seem to me no matter which way we go with this we all will lose some-way or another,.. Livewire- :P

[111harley111]

Cramer admits to insider trading at least 2 times. SEC where are you?

[rg3rbick]

cramer cheers downsizing when it leads to higher stock prices. but then when it happens to wallstreet its teh worst evah.

anyone remember the S&L bailout?

[jcernharth]

Wall Streeters he's crying over are relying on a bailout paid for by you and me with inflationary Fed Policy -- just like always! Check out Vigilant Investor dot com for more on this stuff.

[deviavan]

This is very well done. Thank you for taking the time to put this all together.

By the way have you seen the video of Ron Paul addressing Ben Bernanke during the House Committee on Financial Services testimony on July 18th 2007? It's up on youtube as well.

Congressman Paul brought up some great points about US monetary policy and the looming problems.

[tragic8ball]

If the free marketeers really believed their own schpiels then surely they should be selling heroin and child pornography.

the market shall decide and govt. should keep it's nose out of the profit margin.

Monetarists in their usual moral vacuum.

[paxfigioli]

This appears to be a waste of time. itulip needs to state their agenda instead of playing jazz music and "suggesting" anti-free market nonsense.

[itulipdotcom]

We believe in non-selection application of the concept of free markets. We are pointing out in the video that Cramer's suggestion of a Fed bailout of firms on the wrong side of a bet on mortgage products is anti-free market. Free markets need to apply to financial institutions as well as industrial. Why should the Fed bail out Bear Stearns and a bunch of hedge funds if it doesn't bail out General Motors and thousands of parts suppliers? Let creative destruction do its thing.

[saved2play]

Absolutely.

[jcernharth]

iTulip is right on. The system in the U.S. is hardly free market. It is more mercantilst / fascist than free given how the big players pony up to big govt. to get the system rigged in their favor at the expense of other players. With finance and the Fed, the game has been bailout -- and we pay for it all with higher taxes and inflation, while Wall Street keeps their huge profits for creating the messes in the first place.

[futnuh]

You missed the point ... entirely.

[rynato]

I thought the point was pretty clear. Why didn't you get it? "Anti-free market nonsense" is what happens when crony capitalism is practiced, e.g., bailing out Bear Stearns and hedge funds because they are politically connected... or having the Vice President help Halliburton make a mint.

[quercus76]

WHO CARES! IM RICH!

[de79hill]

Great Video ! Yes, the free ride is over!

[IdealistDan]

Great video. I think The Fed Sucks. They caused this bubble with their fabricated interest rates and secretive monetary policy, and now the people who got houses, car and loans they couldn't afford are going to suffer the consequences. Not to mention the idiot investors who think that over extended debtors are a good investment. 100 years of banker controlled money will screw you every time.

[Taghkanic]

Who's nuttier, Cramer on CNBC or Kramer on Seinfeld? Or are they the same person?

[Taghkanic]

And NBC commentators made fun of Howard Dean? This guy is unhinged by comparison.

On top of that, he's using his news platform to try to get his Harvard buddies bailed out.

[Alexsy82]

Indeed.

[alainsane]

My instincts say if this "rich guy" is this scared of/pissed off about what's happening, then it's gotta' be a good thing.

My biggest gripe with free trade and open markets is that they're never truly free and open e.g. Canadian soft wood tariffs, California bail-out of SoCal Edison, etc, etc.

I think the video edits are very effective...instead of having Cramer blow his proverbial top in a few seconds, the pauses let us savor and appreciate how scared these folks are. Easy come, easy go.

[IdealistDan]

Well.. the rich investors who for some odd reason that over extended debtors make for good investments are suffering.. but the real tragedy are the thousands and thousands of people who were basically convinced to take these loans by slick marketing and shady lenders are now going to lose cars and houses and probably end up declaring bankruptcy.

[Domstersch]

Nice video. Insightful follow-up comments too - thanks for that.

Perhaps a few more of the sentences could scroll up? - it's a bit jarring to have to wait for the fade-out/fade-in to read the next few words. But I liked the music.

[itulipdotcom]

Thanks for the thoughtful suggestion. Will do more scrolling and less fading in the next one.

[Sentinel4truth]

The coming hyperinflation will cause the American people to turn against the Fed and dismantle it in favor of a gold standard just as the Constitution requires. Simple as that if only we are willing to do the right thing.

[awrysjc]

The U.S. Constitution does not require a gold standard.

The only reference to the value of money grants Congress the power "to coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures." Art. I, Sec. 8

[Sentinel4truth]

Article I, Section 10, Clause 1. No State shall... coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debt.

Gold and are indeed the Consitutional standard. QED. You lose. Good day sir.

[TaZMaNiO]

Money is simply a commodity like all others. Artificial demand creates inflationary excess; when the demand reverts to the mean, those areas targeted most by inflationary expansion will suffer the most.

Real national wealth comes from producing goods and services, not from leveraged buyouts, mergers, and speculative risk.

Parties can be a lot of fun for awhile, but there comes a time to put the cork back into the bottle, sober up, and go back to work.

*THE PARTY IS OVER FOLKS*

[itulipdotcom]

Indeed. The question is, which party? The 2001 - 2007 post bubble global liquidity party? The 1981 - 2007 falling interest rates party? If the former, go to cash and ride it out. If the latter, get in your bunker. It'll be China/Russia authoritarian states vs USA/Europe democracies... er, sort of.

[zzcoolfun]

Could you elaborate on the latter? New cold war?

[itulipdotcom]

New Cold War has already begun.

Google News search these two items...

Russia plans new nuclear missile production

Russian Navy to operate from Syria

[rynato]

let's not buy into this kind of neo-con scaremongering. Russia is still barely a shadow of its former self, and we now know that even the old USSR was not as much of a threat to the US as defense-appropriation-hungry politicians and neo-cons wanted us to believe.

[itulipdotcom]

That's a fair point. Hard to remove the mil industrial complex from the equation. You can't blame Russia for building bases in Syria while the US has spent over $4 billion littering Iraq with permanent bases. Still, the US response is predictable, and Russia's, and so on.

[rynato]

I agree Russia is intent on making trouble for us. But, their capacity for trouble-making (at least, militarily...) isn't quite what it used to be.

[ccreilly]

the BS music and slowdown kills this.

[rtcrump]

lol this is gold!

[copaamericablog]

good message, but the way this video was edited makes it extremely annoying to watch. ughh

[tommm3000]

The Federal Reserve is the giant tick that is about to suck that one final drop of blood from the American people that makes us keel over and pass out before we eventually die.

(continued below)

[tommm3000]

The American people need to wake up and learn the truth about the Federal Reserve. They need to learn how this insidious institution was implemented to make a handful of global banking families absolute masters over the wealth and prosperity of the USA.

Printing money out of thin air with nothing backing it can only go on for so long before the whole house of cards collapses.

[itulipdotcom]

Our opinion isn't that the Fed is an inherently bad institution any more than is the European Central Bank, the Bank of Japan, the People's Bank of China, or any other central bank. (cont.)

[itulipdotcom]

The principle here is that the concept of free and efficient markets needs apply as evenly to businesses that fail because of, for example, offshoring as to business that make losing financial bets. (cont.)

[itulipdotcom]

Even the Japanese, famous for using public funds to support corrupt banks that made uneconomic loans to favored bank clients, allowed their second largest financial firm to go under in the early 1990s after their credit bubble popped. The head of the Japanese Ministry of Finance put it well when asked why the firm was allowed to fail: "Easy come, easy go."

[Bo0ja]

Yeah but how can you have an institution that creates money from nothing and then charge interest on every dollar produced and NOT create debt? How do you pay back the interest on each dollar if you can only get dollars from an institution that creates money by charging interest? The sole purpose of the system is the create debt.

[itulipdotcom]

The Fed is a for profit institution, no doubt about it. But what's the alternative? An institution under direct control of politicians? That'll work really well... one hand on the Spend lever and the other on the Print lever. Or a completely private institution? Whose? How about mine. Yeh. iTulip Bank. That's the ticket. The Central banks are the least of several evils.

[Bo0ja]

I'd at least like to know what's going on in the Federal Reserve. They make their own policies and are under virtually no control from congress. I don't see how an institution that has direct control over this nation's wealth can be so secretive.

But anyway, could you explain to me this housing bubble? Are we going to face a recession soon and at what kind of level? Is the Fed boxed in with this issue?

[itulipdotcom]

What? You want your central bank controlled by Congress? Bwahahah! Favorite Greenspan moment is when he answers some stupid pol at a hearing who asks why the Fed can't just print the money to cover Medicaid and SS liabilities, "We can print to can cover whatever liabilities you vote for. But we cannot guarantee its purchasing power."

[rynato]

I can scarcely believe a federal officeholder would even ask this question and not already know what the answer is. Wait a minute, I guess I should be able to believe that.

[paulv1973]

The housing crisis will hit certain parts of the country really hard...California and Florida the most. However, the mortgage crises is nationwide. People bought way too much house for what they could afford and used ARMs to finance their $300k homes when they can only afford a $150k home. Mortgage companies that sell ARMs deserve to go under. They are no help to the average middle class family.

[crabtrap]

the govt should issue the currency and if done on the gold/silver std it would be relativly self regulating

letting private cartels control the money supply and leach

off the citizenry through fractional res lending,is shear insanity and can not be sustained I agree with yours vid though