Jim Cramer: “Bear Stearns is Fine!” Tues, 3/11/08
Reuters (03.16.08): “Bear’s stock closed on Friday at $30.85, valuing it at $3.5 billion, after tumbling 46 percent that day. Shares in the fifth largest U.S. investment bank, which employs more than 14,000 people, hit a record high of more than $171 in January 2007. …”
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Ummm, it was rather funny to watch him get asked about saying that on hardball, I think the 17th. He said he didn’t mean stocks, he meant bonds. He said he didn’t say to hold on to the stocks. I was like, WHAT???????
Here is the quote
“MATTHEWS: OK. OK. It‘s time for a fight. Look, Cramer, you know, last—what was it, two weeks ago, you said to—somebody said, Dear Jim, should I be worried about Bear Stearns in terms of liquidity and get my money out of there? And you said, No, no, no, Bear Stearns is not in trouble. If anything, they‘re likely to be taken over. Don‘t move your money from Bear. You‘re getting a dollar for $100 on stock in Bear Stearns now.
CRAMER: No! No! If you had your money in Bear, the Fed bailed you out entirely! If you were…
MATTHEWS: At $2 a share.
CRAMER: No, no! If you had your money in Bear Stearns as a bank, you got out whole. It was a question involving whether they would wipe out your savings, not the stock. It‘s the same thing as CitiGroup. I would not own a share of CitiGroup, but I‘d put my money in CitiGroup because you‘re going to get paid off.
MATTHEWS: So in terms of what, depositors?
CRAMER: The common stock is not worth anything at a lot of these banks.
MATTHEWS: All right.
CRAMER: But if you have money as a depositor—I didn‘t want to cause a run at Bear. The Fed made you whole over the weekend.”