Who is Jim Cramer

CNBC held Jim Cramer up as some sort of Christ-like seer with his "rant heard round the world". The truth is that Jim Cramer's "rant" was part of a long string of lies, flip-flops, doublespeak, predictions and TERRIBLE advice.

Here are two things you need to know about Jim Cramer's "rant heard round the world":

1) CNBC says Jim Cramer was the "lone man" who "got it right" about the Federal Reserve last year. That is FALSE. Flat-out, 100% totally untrue. Hey, all you gotta do is cue up ANY OF MY VIDEOS last year to see what I was saying. Watch ANYTHING Peter Schiff or Jim Rogers said over the last decade. Heck, you could even find the likes of Larry Kudlow with an opposing position (at times) to the fed. But, the story about Jim Cramer being the "lone man" who "got it right" is so false it's laughable.

2) The chronology of the "rant heard round the world" has been pushed under the rug by CNBC. Their goal is to paint their RATINGS god, Jim Cramer, as being eerily accurate. But, the truth is far different. Here is the short version of the timeline:

A) Fourth Quarter 2006 into first quarter 2007, Jim begins to push housing and bank stocks. He is part of a multi-layered effort by CNBC to cheerlead the market into 2007. Jim claims that the "housing stocks" have "bottomed". He "literally" "draws a line in the sand" on "Mad Money" in a sand box on the floor.

The entire CNBC mantra is "goldliocks", "Bernanke's fed" was getting it right, and, the US economy would be better in 2007 than even the most bullish of predictions had forecast.

This zany bullish cheerleading culminates with Erin Burnett's famous comment, "Credit where credit is due. Bernanke's fed has nailed it," and, "Goldilocks, move aside, we've improved upon that. Nirvana's the word now." Jim also mocks the whole "subprime" problem with a number of radio show appearances and blog postings.

B) First quarter 2007, Jim calls the US economy "fantastic". He tells this to Chris Matthews on the Chris Matthews show the weekend of February 24, 2007. This is scant days before the Dow is destroyed down 500 point in two sessions the next week.

C) 2nd Quarter 2007, Jim begins to pick stocks that are hitting all-time and 52-week highs. He calls this his "80 to 120" rule. (stocks that go to 80 usually go to 120). In April, Jim is unusually-bullish - ranting that at "Dow 14,000" there will be a "plaque" a "signpost" and a "bobble-head doll" to commerate the stop on the way to even greater highs.

D) Late 2nd Quarter 2007, Jim's picks tank along with the market.

E) July 2007, Jim begins to blame the fed for the market tank job.

F) August 3, 2007, Jim performs his scripted, "rant heard round the world". I write that the "rant" was a scripted move aimed to obfuscate the fact that Jim's picks have been horrific, and, that CNBC will use the "rant" for marketing purposes. How "clairvoyant" of me. Jim creates a button on his soundboard with the "they know nothing" quote.

G) September 18, 2007 (morning of the first rate cut), Jim explains that the fed should NOT cut rates, that a rate cut of 50-basis-points would be a catastrophe, and, that the fed should NOT CARE if the market drops "1,000" points. These comments come as a complete 180-degree move from the scripted "rant heard round the world".

H) September 18, 2007, the fed cuts rates 50-basis-points on both the target rate, and, the discount window. This move is a surprise to all.

I) September 18, 2007, Jim does another 180-degree flip-flop from his comments earlier THAT SAME DAY. On "Stop Trading" with Erin Burnett, and, on "Mad Money", Jim explains that this cut was EXACTLY what was needed, that a recession was "off the table", that the fed were "good guys" who were "on the team", and, most shocking, that although "a month ago" the fed "knew nothing" they now "knew something". Jim concludes the day with a dramatic, "Ladies and gentlemen, the bull is back!". After the rate cuts Jim removes the "they know nothing" button from his soundboard and replaces it with a "they know something" button. (This "they know something" button would later be mysteriously replaced with the original "they know nothing" button after the market began to tank again later in the year.)

J) Jim continues his "bullish" rhetoric through the end of 2007. He picks stocks like GOOG at their all-time highs. He picks "retail" stocks". He tells people to "not think" and "just buy" and that, "I know it sounds irresponsible, but, it's not irresponsible."

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K) Then, on January 4, 2008, Jim once more flips his public comments on the fed. By this time, the market is tanking again. Jim needs a scapegoat. The easy choice is, of course, the fed.

L) When the market dives to new lows on January 22, Jim is called in early morning by phone on CNBC to give his "take". On cue, Jim begins to blame the Fed. He also begins to take on CNBC guests who are just now turning bearish. Jim claims that he has been bearish for a long time. Rick Santelli takes him on in a famous moment on live TV. Rick's phsyically angry and it shows. YouTube and message boards light up as the public cries for Jim's ouster from CNBC for his obvious revisionist history.

M) One month later in a move which baffles investors everywhere, Jim says it's time to buy BANK STOCKS. He even says that the companies are "weak" but you gotta buy the stocks. That moment proves to be THE TOP for the bank stocks. Among Jim's bank stock picks are BEAR STEARNS.

N) Jim picks Bear Stearns multiple times at an average price of over $80 a share. Then, the week Bear Stearns was hammered from $60 to $30, Jim came out and said that Bear Stearns would be "fine". This semantic juggling became another YouTube sensation. Jim backtracked and said he meant the BANK would be fine. CNBC even wrote a piece claiming Jim was 100% right. The problem is that the BANK was NOT fine. The BANK was crushed and absorbed by JP Morgan later in a late-night, weekend session that was presided over by the federal reserve. Jim says to sell Bear Stearns the following Monday at $4.50 a share - a hammering of over 90% since his "buy calls" began earlier in the year. CNBC ignores this horrific set of calls and publishes an article exclaiming that Jim was 100% right about Bear Stearns.

O) When the market hits a low at "Dow 11,700" for the year on March 10, Jim announces that it's NOW time for "caution". It's now time to "circle the wagon". "Preserve capital", and, that there is much more downside ahead.

P) At "Dow 13,000" in May, Jim says it's time to buy the market. Jim say he "likes this market" and lists a number or reason for the change of heart. This is roughly 1300 points up from his "caution" call. Jim's call at "Dow 13,000" proves to be "the top" as the market begins another tank job.

Q) Then, at "Dow 12,300" on July 13, Jim says it's time to "Buy, Buy, Buy" into an "oversold rally" that would take place in the next week. This is one of Jim's worst calls ever. The Dow rocks hard straight down in huge moves to "Dow 10,800". A 1500-point PLUNGE.

R) At THE BOTTOM of that move, on July 14, 2008, Jim says it is time to GET OUT of banks and financials. To be fair, Jim had been saying to sell financials and buy financials and back and forth many times before. But, this call was the worst ever. The financials and banks rallied from the NEXT DAY of his call to sell, UP with the strongest percent gains IN HISTORY.

S) One week after the banks and financials rally Jim makes a number of calls to buy the banks, brokers, and, financials. Jim admits that if you took his advice and sold the banks and brokers and got into the "natural gas" trade (as he said to do), you got hammered.

T) Monday, July 28, the Dow is drops 280 points. Jim blames the move down on - THE FINANCIALS. The very stocks he picked the week before. Jim says there is "no end in sight" to the market slide. This is right before the market soars 700 points from bottom to top over the next 2 sessions.

U) Wednesday, after the close, and, up 500 from Monday, Jim calls "the bottom". Another scripted, dramatic, showcase of Jim's snake-oil salesmanship.

V) Then, over the next two sessions the Dow drops nearly 300 points. Jim claims that he didn't really mean the market had "bottomed" but that we would just not drop below the lows of July. By Friday's close, the market was actually down for the week.

And, that bring us to Friday's CNBC deification of Jim Cramer!

The timeline I just layed out is the framework of the damage Jim Cramer has wrought since his "rant heard round the world". There are other bad calls. Too many bad picks to mention. Way too many flip-flops to chronicle here. However, you need to know the basics.

If you choose to believe the CNBC myth, that's on your shoulders now. I've done my part. If you choose to watch CNBC and believe you're getting anything more than a scripted snow-job, you are on your own.

Look, I told you last Friday, "Today, Jim Cramer will be Deified on CNBC."

Yet, I was not prepared for the nausea-inducing, ass-kissing that CNBC passed off as some kind of tribute to their new god, Jim Cramer.

Some people wonder why I do these "Jim Cramer" videos. Let me explain a bit about that now:

1) CNBC is the most-watched channel of it's kind in the world. That fact alone makes it an important task to show the truth about their "messiah". If other won't, and, I will, then, that makes me a lone voice, I suppose, but, at least I'm out here doing it.

2) Jim Cramer's advice continues to hurt people. Call me corny, but, I still believe it's a good thing to HELP people when I can. The truth about Jim Cramer is that you'll be much better off if you do not follow his advice. If my videos help you steer clear of his horror show by showing his flip-flops, lies, and, terrible advice, then, I've done a good thing.

3) Someone needs to be a watchdog for the mainstream financial media. If I did not do these videos, NO ONE would. There is an inherent goodness about keeping some check on the liars who peddle their wares to an unsuspecting public.

Courtesy of Don Harrold.Net