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Cramer was wrong on BSC last week

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As you may know, the Bear Sterns (BSC) was bought by JP Morgan for $2 a share as of this afternoon March 16 US time (Reuter News). And here was Cramer’s take on Bear Sterns on Mad Money just last Tuesday (March 11).

Dear Jim: Should I be worried about Bear Stearns in terms of liquidity and get my money out of there? –Peter

Cramer says: “No! No! No! Bear Stearns is not in trouble. If anything, they’re more likely to be taken over. Don’t move your money from Bear.”

Yeah, the Bear IS in trouble and they are taken over, but at $2 (it may go slightly higher if another buyer emerges), it is virtually go under as far as shareholder concerned.

The following is a list of Investment services companies:

Investment services companies pic
(Source:Google Finance, Mar 14, 2008, full size pic is here)

Bottom line: if you have BSC stocks and listened to Cramer’s advice and hold it through last week. I felt very sorry for you 🙁

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Subprime 101 in Chinese

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This is a link to Caijing mag, about the US subprime loans, or Mei Guo Ci Ji Zai. All articles are in Chinese.

I found this article particularly interesting. And the following excerpt very entertaining (I can imagine Cramer’s body language when he shouted).

而更有人直言,本届联储主席伯南克很可能低估了信贷危机的严重程度。惯于以近乎撕心裂肺的腔调在CNBC电视台评论股市的著名财经主持人吉姆·克雷默(Jim Cramer),在8月10日本周股市收盘后,就大喊伯南克对信贷市场“毫无了解”。

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Don’t Take Experts Too Seriously

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Because I found those so-called experts are not real “experts”, I am talking about many “experts” appeared on CNBC, the business cable channel. Actually one of my friend who studied in Finance had a worse comment on CNBC (he heard it from his professor). But lately I started to appreciate what he meant. For instance, the wild popular “Mad Money” show done by Jim Cramer, a statistics shows if you act according to his recommending, basically you are stand still because 50% of his recommends turn out to be true. Considering there are people actually act after watching his show, his actual performance is not even 49%. But I do like his straight talk style and some of his analysis though.

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