Wednesday, April 8, 2009

Following Jim Cramers Advice May Leave You Living In The Streets

Jim Cramer of The Street who is known for his CNBC show "Mad Money" and stock market quotes and investment advice could drive someone Mad. Worse with the questionable advice and shoddy fact checking that takes place on The Street following that kind of advice could end with you living on "The Street".

On April 3rd this was posted on his site.

The life insurance industry has $214 billion in commercial mortgage-backed securities, according to new data from SNL Financial, which tracks the portfolios of more than 800 life insurers. More than a third of that amount, or $86 billion, is invested in bonds rated A or less. The issuers of lower-rated bonds are more likely to default, Fitch says.

Fifteen of the top 20 life insurers had more commercial mortgage-backed securities than capital and reserves. Five of those companies held more of the riskier bonds, the ones rated A or less. They were Allianz Life Insurance; Allstate Life Insurance; Manulife's John Hancock Life Insurance; Genworth Life Insurance, part of Genworth Financial(GNW Quote - Cramer on GNW - Stock Picks); and Hartford Life Insurance, a unit of Hartford Financial Services(HIG Quote - Cramer on HIG - Stock Picks).

Allianz Life Insurance, which holds three times more of the lower-rated securities than capital and reserves, might be the most vulnerable. The company had $2.1 billion of capital and reserves and $6.9 billion of the less-desirable issues at year end.

Prudential Insurance Company of America, the largest insurance unit of Prudential Financial(PRU Quote - Cramer on PRU - Stock Picks), is the largest holder of commercial mortgage-backed securities with $11.7 billion but almost all of that amount is invested in AA-rated or AAA-rated bonds.

Today if you go to check you will see a correction has been issued and my suspicious mind being what it is I noticed no numbers in the correction leaving me to wonder if someone brought this to the attention of Allianz and they threatened suit, or if Cramer is involved in a cover up of $4.8 billion of less desirable issues or lastly if he just gives Bad Advice. I know Allianz has had more than its seemingly deserved share of lawsuits stemming from Consumer Fraud as Attorney Generals and Attorneys across the nation have sued them and they have been Spanked (slightly in my opinion based on the sheer number and Fraudulent practices used by Allianz and the Licensed Security Investment Brokers they employ to sell their products) so it makes me wonder did Allianz come up with $4.8 billion in 4 days to cover their bad assets, did they threaten Jim Cramer and The Street? I would like to see the data myself.

Back to Jim Cramers bad advice, Dr. Doom said "He was one of those who called six times in a row for this bear market rally to be a bull market rally and he got it wrong. And after all this mess he should just shut up because he has no shame." On Tuesday Dr. Doom said "Cramer is a buffoon". Dr. Doom said in 2006 that the worst recession in four decades was on its way. He has attracted attention for his gloomy-but Accurate-predictions of the U.S. financial market meltdown and also said the latest surge is just another bear market rally.

He expects the market will test the previous low because of worse-than-expected macroeconomic news, disappointing earnings and because banks will fail after the stress tests come out. "Once people get the reality check, then its going to get ugly again" said Dr. Doom. "He's (Cramer) not a credible analyst". (You may recall also that is has been said the bank stress tests will be a complete SHAM) Cramer has previously conceded he made some wrong calls, but he went on "Today" last October telling people that if they needed money in the next five years, take it out of the stock market, well I am no Dr. Doom but following that kind of advice it seems to me could have you living on "The Street".

Dr. Doom made the comments before appearing with bank analyst Meredith Whitney and Canadian bears Ian Gordon and Eric Sprott at an event titled "A Night With The Bears", "They (Doom, Whitney, Godon,Sprott) all CORRECTLY predicted the current financial meltdown". Gordon, author of The Long Wave Analyst newsletters, told the event's audience of 1500 that he expects the Dow Jones industrial average to plummet to 1,000 based on the idea that economic events repeat themselves in regular sequence every 60 years or so. Sprott, a Canadian hedge fund owner, told the predominantly business crowd that systemic risk remains and that investors should buy gold.

Using a little common sense is all you need to see that Cramer is indeed a "buffoon" and hopefully it will save you from listening to him and risking the possibility of losing everything. Hey Cramer show us the Allianz figures there are hundreds of thousands of elderly Americans worried about their life insurance and annuity policies in Allianz and with the government now preparing to give life insurance companies some more of the taxpayers "Loot" and the article published today on The Street that says our Government is also using the time for Unloading Bad Assets on us (the taxpayers) and the article yesterday that says Geithners plan allows the Banks to Unload Toxic Assets on Us with the Accounting Change, I think you have an obligation to prove your not a buffoon.


As explained to me..

"Accounting change all this does is allow the banks to keep their valuable assets and set their values. The least valuable assets they will unload into the Public/Private Partnership at the expense of the Taxpayer! Some percentage of these assets will go bad and since the loans are backed by FDIC the Taxpayer will have to foot the bill on that also. These people just do not know when to stop with the Scams" (by my to remain anonymous but obviously intelligent source)

Correction Issued
Numerous Allianz Lawsuits
Fed Unloading Bad Assets on Us
Article Yesterday
All Correctly Predicted
Stress Tests a Complete Sham

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