On Fox 5 tonight Neil Cavuto said he disagreed that the economy is bad and said the energy crisis was a lot worse. For some reason, I felt he needed to say that because it backed what Bush said. But Cramer gave someone really bad financial advice, and I wonder if that caller can sue him for any monies lost in that investment choice. I hope so because the truth is no one knows what's going to happen. Most of the political know-it-alls said Obama would win Texas. I only feel lucky because I put my TDA in fixed and now have to pray that no one messes with our pension. I understand why Bear Sterns needed the bail out because the world economy was tied to it, but certainly this country can figure out a way to help those in foreclosures.
Well, Obama did win the Texas caucus and delegate count, but that doesn't mean Cavuto's not jacka**. Or Cramer for that matter. Anyone who actually follows his advice after all the bad press he's gotten for his horrible picks is crazy, though I'm not sure lawsuits solve all the world's problems. You're not lucky for having your TDA in fixed income, you're smart.
Cramer wasn't talking about Bear Stearns stock...he was talking about the individual asking if they should pull their money out of the Bear Stearns bank! Which is foolish, since the bank is protected under the FDIC. Cramer was right in this case, and it would appear you were wrong!
Edited By Siteowner
Opinions are allowed here.
Name calling is not. I've edited one comment, and deleted another. Let's please give that a rest.
Thank you.
Correction to Michael's missive above:
Maybe Bear Stearns has some bank-like account protected under FDIC. Those would be federally protected, but only up to $100,000 per account. The non-bank (i.e., securities) accounts that likely make up the vast majority of the accounts are protected under SIPC (Securities Investor Protection Corp., I think) up to $500,000.
For what it's worth, if you're a long term, well-diversified investor, Bear's collapse means little to you. Even those with a shorter time horizon should have little exposure to such crises if they diversified proeprly. Unfortunately, financial illiteracy is rampant.
(I say this as a former financial advisor. I was good on the educating the client part of the job. Not so good on the sales part of the job. You know...the part where you earn money.)
After 89, I never invested in any insurance company outside of NYS. That is because the insurance companies in our state have some sort of pooling of resources if a company goes bad and investors are somewhat protected.
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