August 20, 2008

Jim Cramer on deflation. Anyone got whiplash yet?



Houses down.
Oil down.
Gold down.
Corn down.
Wheat down.
Used autos down.
Everything down.

Hmmm...

May you live in interesting times...

29 comments:

cheney said...

ethanol mandate is a farse.We need to scarp it and quit letting crooked politicains take bribes form the ag industry.

Anonymous said...

HEY -

Wait a tick - !!

Didn't he call the bottom (again)
last week?

Uh, WHO still listens to anything this Tool says??

Anonymous said...

The demeanor, the eyeballs...What. The. FUCK is he on?

Yes; it's all tremendously confusing. Particularly for an uneducated person like myself. But...

I have to believe that, sooner or later, the $60 Trillion we're on the hook for will come into play.

More valuable dollars somehow; contravening all our history and common sense?

Pffft.

Anonymous said...

Yeah right. The money supply is only growing at 14% now, so we're in a deflationary meltdown. Cramer is spewing the latest party-line drivel as the Fed desperately tries to avoid raising rates, a move that will absolutely, positively, kill their buddies on Wall Street.

This deflato-scare propaganda gives them cover to hold or even lower rates through November's elections. Next January the real fun begins as Obammy and his posse start to spread some DC cash-money joy throughout the land. "Pay as you go" will have a whole new meaning in Congress come 2009 -- LOL.

Anonymous said...

New trucks 50% off on Craigslist

Edgar Alpo said...

ass clown

Edgar Alpo said...

from urbandictionary:

ass clown

1) One whose stupidity and/or ineptitude exceeds the descriptive potential of both the terms ass and clown in isolation, and in so doing demands to be referred to as the conjugate of the two.

or, alternately:

2) One, who, through the fault of his parents conception, is a skid mark in society's collective underwear.

Anonymous said...

OT. Wanna know the biggest transfer of wealth ponzi scheme? Olympics.

Everyone knows that Olympic events bring serious recessions to the host countries, once it ends. It happened in Australia, Spain, Greece, etc.

So why pursue a concept in which hard-working taxpayers have to subsidize such a socialist ponzi scheme failure?

To transfer wealth to the cronies and to organized crime, of course.

Not only that, it's obvious that most Olympic sports that require a subjective analysis by judges, to calculate scores or come up with the winner, are totally fixed. Just look at how the Chinese are coming up ahead on those sports. The way the judges took away the gold from the Americans in gymnastics to give to the inferior Chinese, is a HUGE example. How's that the Chinese teams never cross path with the strongest contenders before the end (i.e., soccer, volleyball, etc)?

IT'S ALL RIGGED!!!

OLYMPIC GAMES ARE A PONZI SCHEME TO TRANSFER TAXPAYER MONEY TO CRONIES AND ORGANIZED CRIME, WHILE CONTROLLING THE SHEEPLE BY CREATING A FALSE SENSE OF PATRIOTISM.

I say Keith should start a thread to bring more attention to this socialist scam.

Mark in San Diego said...

Of coure I posted hereon HP last week - deflation is here. . .I bought Dow Chem, as they raised prices 20% across the board this summer when oil was at record, now oil is down (their raw material) so their profit margins working ahead will be fat. . .when I was a yound pilot in training, my instructor always said, "FLY AHEAD" . . remember you are going 300mph, so look out 10 miles. . .I always am a year ahead of everyone else because my econometric model works a year ahead. . .deflation is here big time.

mickeyc said...

Once again, anonymous comment = idiot.
The Olympics are a Ponzi scheme? Please explain how it is a Ponzi scheme.
Gymnastics are rigged against the Americans. Yep, those ten medals clearly prove your conspiracy.
All the money goes to organized crime, no wait China runs everything, wait, wait it's organized crime again, hang on it's communism!!
So we have a Chinese, organized crime Ponzi scheme run by those evil Swiss!
Your breathtaking stupidity suggests you are an out of work loan broker.

Anonymous said...

He must be smart after all he has his own tv show and it's not like just any idiot can have a tv show for instance Paris Hilton could never... Oh wait sorry..
Cramer you BAFOON
Anyway get ready for the worst case scenario STAGFLATION

bobby lee said...

cramer didn't sound all that intelligent. deflation happens when the price of assets goes down, inflation happens when the money supply opens up; the problem is that even if the money supply is opened up, folks have enough and don't need to have more so even though the dollar supply is inflated, prices could still go down, etc...

Bush is a moron said...

"from urbandictionary:

ass clown

1) One whose stupidity and/or ineptitude exceeds the descriptive potential of both the terms ass and clown in isolation, and in so doing demands to be referred to as the conjugate of the two.

or, alternately:

2) One, who, through the fault of his parents conception, is a skid mark in society's collective underwear."

Also found under the heading of G W Bush and the Bush administration.

Anonymous said...

Ass Clown

Mo said...

How does retail do well in deflation? Is this guy insane?

What happened to the USA said...

The problem is not money supply, or deflation, those are just vain attempts / and consequences of fixes - the root problem is CONFIDENCE. NO ONE, and I mean NO ONE in the world has ANY confidence in ANYTHING American right now. Period.

Look at some examples.

1. American school kids now are the worst educated in most of the developed world.

2. Our financial system is run by complete idiots with no bounds to their greed and incompetance.

3. Our government sent Billions in stimulus checks out to the masses to buy LCD tv's and other depreciating assets (oh well everything in America is depreciating anyway) instead of using that money to fix sagging and failing infrastructure.

4. Our electorate is more concerned with who is on Dancing with the Stars and American Idol, meanwhile thinking that they should be living like the celebs on cribs instead of waking up and realizing that by continuing to elect bafoons and crooks we are making ourselves the third world.

5. We don't understand the difference between wealth and debt.

6. We don't manufacture ANYTHING anymore.

7. The few kids that do go through school and then attempt to attend college and become the 1% of highly educated have no choice but to migrate to Canada, since the only jobs left here are at Wal Mart and Burger King. Even if you do land a job somewhere good, they can go under in a moments notice and your health insurance takes most of your paycheck. Lest we forget that you also are in debt for just GOING to college, and now that debt can't even be discharged if you can't keep up with it due to the horrid job market. So your incentive to be smart in the USA is what? Meanwhile, welfare is just an application and two kids away.

8. For those that pay off the student debt, and can afford health insurance, then you get taxed up the a$$ so then you STILL have nothing. And forget about tax shelter, that is going to go away too as we become more "accomodating" to our new master race - the Mexican.

9. Food inflation is causing those that do work to go in to debt to buy food so our idiot guberment can subsidize ethanol to replace 3% of the gas in the country with 30% of the food stock. Oh but Argentina makes Ethanol cheaper from non-food based products, however they are tariffed so heavily here by our Guberment that our local food based inflation supporting ethanol appears to be more economical. Brilliant. Lets not bother to ADOPT a good idea or purchase from a country that has a good idea - just tarriff it so it is cheaper to buy stupid.

10. Republicans / Democrats - nothing further need be said there.

11. Iraq and the entire Bush Administration.

12. Axis of evil.

13. Enron

14. Katrina

15. Hank Paulson and "We will not guarantee any debt of Freddie Mac and Fannie Mae" fast forward 3 months "Congress - I urge you to give treasury the power to purchase Freddie and Fannie preferred stock to back stop two very vital agencies" Translation - Cause panic, when panic happens, nationalize losses, privatize gains.

16. Big 3 Auto makers which were the only companies IN THE WORLD that did not notice that smaller cars were the trend, and figured driving a LAND YACHT or mobile assault vehicle to drop your kids off was the future. Oh and lest we forget they have not had real market share since the late 70's.

17. 70% of oil - the number one energy product consumed in America today comes from THE SAME PEOPLE WE ARE FIGHTING AGAINST. Hmmm, now THAT is genius - see bullet point 9

There are so many more examples I can list as to why the capital of the world is leaving us behind, thus causing the great deflation. The REAL fix to this whole situation is a complete mindset change from the bottom up within America. It starts by people pulling their heads out of their asses and figuring out that the world is moving ahead while we stay behind - way behind.

Paul E. Math said...

I'm willing to consider the deflation scenario. For instance, Mike Shedlock makes a good argument. But Cramer? No, Cramer speaks one language: jibberish.

SUFFERING BRAINSTEMS said...

Everything down? Not a problem, the brainstems will STILL vote republican. It doesn't even occur to the ignorant miscreants that the reason things are in the toilet is due to 30 years of conservative fiscal policies, a weakening of the government's ability to do oversight and the republicans' passion for using the Treasury as their personal piggy bank, giving billions away to their friends in the corporate world.

See, brainstems can't seem to shake the fantasy that the republicans will cut their taxes. They can't reconcile the fact that their taxes haven't gone down in the last 30 years but theier standard of living has fallen as the top 1% has been given more and more of the pie. "That's ok", say the brainstem conservatives, "the rich should get out of paying taxes, they're better than me. Besides, I'm going to be rich someday real soon and when I am I don't want to have to pay taxes either! That's why I'm voting republican!"

Stupid brainstems. Will they ever learn?

Agent 99 said...

Thank you Mark in San Diego...
FLY AHEAD
Think ahead. To me, the ability to think (Fly) ahead is a measure of intelligence and maturity.

My trouble is, in looking ahead I see a brick wall and it's coming at me real fast.

Deflation, yes absolutely. Credit has dried up. How can you argue inflation with all this debt?? Sure the Fed and the Treasury are pumping pumpin pumping...but, it's a little like "water water everywhere and not a drop to drink". Prices are going to be forced down by lack of credit and especially a lack of cold, hard cash.

I still believe in gold...as money.
Hope I'm right.

anaustralian said...

A serious recession in Australia after the Olympics?

Wow, news to everyone in Australia.

I guess if you define historically average GDP growth (as opposed to way above average) while most or Europe and the US had real recessions - you know with negative GDP growth then yes Australia had a serious recession.

Works_4_a_living said...

Isn't deflation the easiest problem to fix, simply print more money, oh wait they are doing that.

He is fixated on the concept that inflation is an increase in PRICES, when in fact it is an increase in MONEY SUPPLY, dunce!

Anonymous said...

listen to cramer long enuff and you'lll know what a 2 dollar hooker feels like in a ports o call.signed...BUTTCRACKOFDOOM.

les said...

It's not deflation, the commodities bubble simply popped. The prices may have come down a lot, but the prices are still higher than what they were last year. And the average prices of things will continue to go higher next year (ignoring the speculative bubble).

The overall price trend is up, we are simply coming down from the bubble.

But we will enter a period of wealth destruction or asset deflation. (This doesn't really affect the price of everyday retail goods)

When a company looses money, its stock value drops dramatically. (Companies which have sustained losses rarely have stock prices above $5). Look for the DOW to drop to pre-1999 levels (8500).

You already know about home values.

Antiques, art, used cars, or even classic cars will also see values drop.

Anonymous said...

This is one of your really stupid posts. All this crap shoots to the moon in price Alice, then backs off a little bit and you decry prices are down.

I guess that means houses are fairly priced and you're going to buy one now, right Keefer?

brokersleaveyoubroke said...

Anon said:
"OLYMPIC GAMES ARE A PONZI SCHEME TO TRANSFER TAXPAYER MONEY TO CRONIES AND ORGANIZED CRIME, WHILE CONTROLLING THE SHEEPLE BY CREATING A FALSE SENSE OF PATRIOTISM.

I say Keith should start a thread to bring more attention to this socialist scam."

You really should learn what socialism actually is before you make a fool of yourself with a post like that. Taking money from taxpayers to give to the people in power is the exact OPPOSITE of socialism.

brokersleaveyoubroke said...

Not Cramers usual rant. He looked like he was on heavy sedation. The whole thing sounded like a paid political ad for the GOP. I think it was a load of BS except I agree that the ethanol mandate is a stupid piece of legislation that should get thrown out.

Anonymous said...

Gold, silver and oil up today!! Got it on sale last week. get em while there cheep folks.

Anonymous said...

"gyaz-uh-lean"

Anonymous said...

I used to admire Cramer until this deflation nonsense. What a crock, I think he is panicking. The BLS is already undercalculating it, leading to the biggest transfer of wealth in the history of mankind.

I agree with others, I think he is on drugs or the lie he was vommiting was so disgusting it was making him sick along with the girl next to him. Some are predicting double digit inflation next year. We are headed for, if we are not already in STAGFLATION. Brought to you in part by your friendly neighborhood banker/thief/lier and that ass clown Alan Greenspan - who should be locked up. BTW, did this jackass take an oath of office? Can we shoot him for treason?

Eventually, the Fed will have to raise, Cramer knows it, and then we will see Bear Market - Part 2.

Until the Fed gets inflation under control people will spend less and business will continue to decline. You can only have so much wealth unbalance, then you are top heavy. There is too many investment dollars and not enough of a market to invest in.