Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

[Jim] Cramer: Depression Comparisons are 'Scare Tactics'
Business & Media Institute ^ | 2008-12-02 | Nathan Burchfiel

Posted on 12/02/2008 9:43:23 PM PST by rabscuttle385

CNBC “Mad Money” host Jim Cramer said on NBC’s “Today” show Dec. 2 that comparisons between the current economy and the Great Depression are “scare tactics.” Maybe he forgot about his own reliance on the juxtaposition.

“[T]hat’s got to be taken off the table,” Cramer told “Today” host Meredith Vieira about comparisons to the Great Depression. “There have been enough things done by this government to absolutely preclude that. I, myself, do not want to use that term ever again on the “Today” show even to compare it. Things are very different. We do need help from Europe; we need help from China. But take the Great Depression talk off the table. That is scare tactics.”

(Excerpt) Read more at businessandmedia.org ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: bailout; bho2008; deranged; economy; financialcrisis; jimcramer; mentalinstability; panicof2008; recession; unhinged
Navigation: use the links below to view more comments.
first previous 1-2021-4041-48 last
To: Tublecane

He would likely mean coordinated monetary policy from the central banks.


41 posted on 12/03/2008 5:35:25 PM PST by Pelham (Obama: Reconstruction version 2.0)
[ Post Reply | Private Reply | To 4 | View Replies]

To: mountn man

The Carter years were inflation and stagnation but didn’t feature the bank and credit market weakness that exist now. That is the similarity some point to in comparing this recession with the ‘30s.


42 posted on 12/03/2008 5:38:58 PM PST by Pelham (Obama: Reconstruction version 2.0)
[ Post Reply | Private Reply | To 8 | View Replies]

To: politicket

If John Williams at Shadowstats is anything near to being correct unemployment is currently closer to 14%:

http://www.shadowstats.com/alternate_data


43 posted on 12/03/2008 5:43:17 PM PST by Pelham (Obama: Reconstruction version 2.0)
[ Post Reply | Private Reply | To 11 | View Replies]

To: mountn man

At least back then we didn’t have government as a huge equity owner in banks.

This is the largest robbery in the history of the world.


44 posted on 12/03/2008 5:46:18 PM PST by Boiling Pots (Anthony Kennedy: The 2nd most important person in Government 2009-2013. Pray for his good health.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Pelham
The Carter years were inflation and stagnation but didn’t feature the bank and credit market weakness that exist now.

Only if you ignore the fact that rampant inflation impacts creditors severely which results in some unintended consequences like interest rates that make credit impracticable to the average Joe.

45 posted on 12/03/2008 5:58:43 PM PST by jwalsh07
[ Post Reply | Private Reply | To 42 | View Replies]

To: jwalsh07

Inflation erodes the value of the dollar and can make credit impractical but it doesn’t threaten to collapse the banking system. Deflation does that.


46 posted on 12/03/2008 9:01:16 PM PST by Pelham (Obama: Reconstruction version 2.0)
[ Post Reply | Private Reply | To 45 | View Replies]

To: Pelham
Inflation erodes the value of the dollar and can make credit impractical but it doesn’t threaten to collapse the banking system. Deflation does that.

Markets necessarily require buyers and sellers. When buyers are priced out of the credit market the credit market ceases to operate efficiently, if at all. Which could also correctly be called be called credit market weakness. Which existed along with gas lines, ammo free Army units and hostages during the Carter years.

47 posted on 12/04/2008 6:26:17 PM PST by jwalsh07
[ Post Reply | Private Reply | To 46 | View Replies]

To: jwalsh07

I was in my 20s during the Carter years and know what happened.

Inflation makes loans expensive, and in the era of Regulation Q even dried up lending. Inflation can be fought in the manner that Fed Chairman Paul Volcker employed, putting the brakes on monetary growth and allowing interest rates to skyrocket.

That is not anything like a deflationary collapse of the credit market, which is far more serious and against which the Fed’s basket of tools may not be effective.


48 posted on 12/04/2008 8:37:16 PM PST by Pelham (Obama: Reconstruction version 2.0)
[ Post Reply | Private Reply | To 47 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-48 last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson