Jim Cramer's Recommendation On CIT From Yesterday: "Primed For Upside. I Would Buy"

Tyler Durden's picture

One can only hope that at some point irresponsible, speculative and highly destructive stock calls like this would see some regulatory intervention.

Citi and CIT Are Primed for Upside, by Jim Cramer, 9/29/2009, 1:54 PM EDT

Citigroup's on the move, so is CIT . I think that Citigroup will be
biggest beneficiary of the new plan to buy toxic assets, because it is
basically running its SIV as discontinued operations and it could
benefit from the new program. CIT is about the possible IndyMac link-up
courtesy of John Paulson, a real smart guy who was negative about
mortgages before it paid to be negative. Dan Freed on CIT CIT Surges on
of IndyMac Deal
I put both of these up there as examples of companies that won't die,
and because they won't die, they live. I know that seems a little
circular in reasoning, but because Citigroup never suffered a run like
Wachovia and Washington Mutual did, it made it and as our flagship site
mentioned, it is safe. If it is safe, it can go higher.
Because no one forced CIT into bankruptcy, it can live to play again,
and when I read in the New York Post that Paulson owns CIT debt, I
realized that he's powerful enough to save this company, particularly
because he is one of the investors in IndyMac and knows his way around
the bottom of the debt barrel.
These two stocks represent lottery tickets that are no longer rip-ups
because they have made it out of the "critical care" stage and are

I would buy them both.

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Cognitive Dissonance's picture

Someone needs to muzzle Cramer. He's doing more damage to Joe six pack that a room full of banksters.

Daedal's picture

Nah, keep him talking. It's comments like this that are nailing his coffin. Although at this point, pointing out that Cramer has no idea what he's talking about (to anyone without severe memory impairment) is like beating a horse with a dead stick.

monmick's picture

A dead horse with a stick, surely.

KawKaw's picture

Can we start a petition directed at the SEC/Congress to investigate and throw this S.O.B. in the clincker?  Seriously.  How is he not in jail yet?


Operation Enduring Bubble needs to come to an end!

long-shorty's picture

It's clear that the vast majority of the money he made at his hedge fund was by (1) exploiting inside information--in particular, knowing analysts' actions on stocks before they happened, and (2) levering up twice at fortunate times (it worked out well for him but could have just has easily resulted in 100% losses).

He is a megalomaniacal criminal. It's too bad nobody has the proof to put him away.

What we do have proof of is that his advice is worthless, and that he builds up other people whose advice is worthless (or worse) like Lenny Dykstra and Ron Insana.

I have a hypothesis as to why he just sat there and took the punishment from Jon Stewart. He was afraid of what was coming next, that Stewart might actually have evidence of the skeletons in his closet that could ruin him.


Anonymous's picture

CHE? Why not Stalin?

Anonymous's picture

But the stick was probably dead before the horse......

Anonymous's picture

He's paid by the banksters to entertain the not so well informed to keep them not so well informed.

Anonymous's picture

Based on past performance, no guarantee of future results, Feds more likely to muzzle also-rans like Alan Stanford and Independents with Integrity than team players like Bernard Made-off, BB, HP, LS, RR, TG and Jim Cramer supporting broken Banks and Corps raiding consumers, savers, taxpayers and wage slaves.


Joe Sixpack's picture

Thanks for caring, man. Fortunately I don't listen to Cramer, nor do I have any faith in any MSM.



Anonymous's picture

"this free e-letter is your access to a world most investors never get a glimpse of."

What secret world will Maria show us?

monmick's picture

No, no, no! That's not what he said. He said that if you had money on deposit at CIT to leave it there because it was safe...


NoBull1994's picture

Classic!  Only a matter of time until he's on TV explaining why he didn't say to buy CIT.  Revisionist history is en vogue, baby, it's 2009!

NoBull1994's picture

These math questions are too hard...  27 times -37?  I had to find my calculator...

Anonymous's picture

Yeah, I got one like that, and then it said it would only accept 2-digit answers....

Oso's picture

BSC-LMAO!!  well played.

…unexpectedly…'s picture

"...but because Citigroup never suffered a run like Wachovia and Washington Mutual did, it made it and as our flagship site mentioned, it is safe. If it is safe, it can go higher. Because no one forced CIT into bankruptcy, it can live to play again,..."

Along those same lines...

Sir Bedevere: There are ways of telling whether she is a witch.
Peasant 1: Are there? Oh well, tell us.
Sir Bedevere: Tell me. What do you do with witches?
Peasant 1: Burn them.
Sir Bedevere: And what do you burn, apart from witches?
Peasant 1: More witches.
Peasant 2: Wood.
Sir Bedevere: Good. Now, why do witches burn?
Peasant 3: ...because they're made of... wood?
Sir Bedevere: Good. So how do you tell whether she is made of wood?
Peasant 1: Build a bridge out of her.
Sir Bedevere: But can you not also build bridges out of stone?
Peasant 1: Oh yeah.
Sir Bedevere: Does wood sink in water?
Peasant 1: No, no, it floats!... It floats! Throw her into the pond!
Sir Bedevere: No, no. What else floats in water?
Peasant 1: Bread.
Peasant 2: Apples.
Peasant 3: Very small rocks.
Peasant 1: Cider.
Peasant 2: Gravy.
Peasant 3: Cherries.
Peasant 1: Mud.
Peasant 2: Churches.
Peasant 3: Lead! Lead!
King Arthur: A Duck.
Sir Bedevere: ...Exactly. So, logically...
Peasant 1: If she weighed the same as a duck... she's made of wood.
Sir Bedevere: And therefore...
Peasant 2: ...A witch!

aldousd's picture

Crowd: "We are all individuals!"

Man: "I'm not!"

I need more cowbell's picture

And my favorite follow on line, after King Arthur pipes in.

" And who are you, sir, so wise in the ways of science"

Anonymous's picture

"I am Cramer, King of the CNBS!"

Anonymous's picture

Easychair prediction:
Rex JC off the air by the end of the year, preceded by
F Money and DK weed putting the top on AAPL...

Anonymous's picture

Easychair prediction:
Rex JC off the air by the end of the year, preceded by
F Money and DK weed putting the top on AAPL...

Anonymous's picture

In the bleak days of nineteen-eighty-three, as England languished in the doldrums of a ruinous monetarist policy, the good and loyal men of the Permanent Assurance Company-- a once-proud family firm, recently fallen in hard times-- strained under the yoke of their oppressive new corporate management.

Pushed beyond the bounds of decent and reasonable victimisation, the aged retainers take their destiny in their own hands and-- Mutiny!

And so, the Crimson Permanent Assurance was launched upon the high seas of international finance.

There it lay, the prize they sought, the richest jewel in the crown of the I.M.F.: a financial district swollen with multi-nationals, conglomerates, and fat, bloated merchant banks.

Hidden behind the faceless, towering canyons of glass, the world of high finance sat smug and self-satisfied as their future, in the shape of their past, slipped silently through the streets, returning to wreak a terrible revenge.

Adopting, adapting, and improving traditional business practises, the Permanent Assurance puts into motion an audacious and totally unsuspected takeover bid.

And so, heartened by their initial success, the desperate and reasonably violent men of the Permanent Assurance battled on... until, as the sun set slowly in the west, the outstanding return on their bold business venture became apparent: the once-proud financial giants lay in ruins, their assets stripped, their policies in tatters.

It's fun to charter an accountant
And sail the wide accountancy
To find, explore the funds offshore
And skirt the shoals of bankruptcy!

It can be manly in insurance
We'll up your premium semi-annually
It's all tax deductible.
We're fairly incorruptible
We're sailing on the wide accountancy!

up, up, up your premium

snorkeler's picture


In Cramer's case, euthanasia is the only proper and humane action available. 

Anonymous's picture

cnbc always bringing the public the best and brightest financial market commentary(?)....fox and bloomberg should have a field day with this...

Eduardo's picture

LOL down 43% ... that's what I call a helpful advice !

In any case I must confess I am surprised the trend for bankroput companies was UP lately.

What about the friends at GS upgrading NIKE after that earnings report ?

jerv's picture

You wan't some salt with that wound, sir?

Anonymous's picture

i think the damage to J6P is intentional. No one is policing these guys at CNBC.......he's helping his hedge fund buddies loot....its that simple.

jmf's picture

Moin from Germany,


this rivals almost his housing shortgage call from Jan 2008.... :-)


chindit13's picture

Interesting to see if CIT goes hat-in-hand to Geithner to get a bailout, and wins.  If so, the taxpayer will have graduated from bailing out centi-millionaires at Goldman Sachs to bailing out billionaires in the form of John Paulson.  We are just TOO kind!

hazenyc's picture

he meant buy it AFTER the 40% drop in price today!

hazenyc's picture

(Cramer is a moron)

john_connor's picture

he'll say that he meant buy the preferred shares rather than common, assuming they even have preferred shares.  another excuse he'll cite is that he always recommends to average in.  more comedy on the station that no one watches.

Miles Kendig's picture

More stellar journalism from the NBC family of news producers.  With standards of journalistic integrity like that no wonder they and their associates at CBS, FOX, ABC, CNN and E TV are aghast at the quality of reporting found at Internet blog sites.

Anonymous's picture

Please Zero Hedge... stop reporting about this insane, Bi-Polar, drug induced, moron/idiot. The more you mention him, the more significance you give both him and CNBC. Sure, it gets people's emotions running high, but my goodness, the guy is a lunatic. ZH has more important topics and issues to report on. After all, with CNBC viewership down 37% YOY, this insane, idiotic, small minded man, can't have more than 3,000 people listening to him at any one time. Let's move on.

Anonymous's picture

I second that thought.....

Anonymous's picture


chunkylover42's picture

I think he should just be forced to buy with his own money anything that he recommends to others.

Rage of Odin's picture

Cramer=MSM mouth piece=crap

Anonymous's picture

He's maybe still on the Goldman payroll.

lizzy36's picture

I think there is a higher probability of Tyler, appearing as a guest on Lunch Money, than there is of any regulatory intervention regarding Cramers market calls.   

lsbumblebee's picture

Now look. Cramer told me to buy this shit so I did. Okay? If I had a brain would I be reading "Get Rich, Stay Rich (Make Your Kids Even Richer)"?

Anonymous's picture

no one on the RealMoney site will confront him. Apparently none of them really give a shit about the reputation of the site...or maybe its that whole "birds of a feather" idea. Spineless fucks

Dixie Normous's picture

Off topic but was PMI released a little early today.  I only ask because of the spike in futures volume at 9:42.

JohnKing's picture

Cramer has publically boasted about breaking securities laws, I wonder just who and what he is connected to to be so brazen and untouchable?

don't do anything remotely truthful

Cramer Confesses