Wednesday, September 12, 2007

Jim Cramer's Bernanke/Armageddon Rant

I must admit, the intensity of Cramer's rant caught me by surprise, which is itself a surprise because, well, it's Jim Cramer. Cramer, who visited Darden only a few months ago goes thermonuclear while saying Bernanke has 'NO IDEA WHAT IT'S LIKE OUT THERE' and imploring him to 'OPEN THE DARNED WINDOW!!' Take five minutes of your day and watch this, you won'd be disappointed. Then, be sure to ask yourself why lies behind Cramer's reasoning. Is it a just liquidity issue? Or, is it a question of bad loans coming due? Cramer argues that Chairman Greenspan would have cut more by now, but whether or not that's true, the question is should the Fed add liquidity through the discount window, cut the target Fed Funds rate, or both? Or maybe, it shouldn't act at all.

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