Actually I am sure a lot of people are over the FDIC limits because investment banks only cater to the rich. Cramer is an idiot to say their money is safe.
Cramer dodged the question. Even if he meant people should not worry about investments they may have at BSC he was touting the stock at $70 because BSC was going to be taken over at a $40 premium.
February 15, 2008 11:00 AM EST Bear Stearns (BSC) Surges As Takeover Talk Heats Up February 15, 2008 11:00 AM EST Shares of Bear Stearns (NYSE: BSC) are on the move today as takeover rumors, which have surrounded the name since the subprime debacle started, have heated up. Bloomberg quoted the head of equity trading at Lek Securities, Michael Mainwald as saying "The rumor going around is a $98 cash offer over the weekend." One market participant suggested to StreetInsider.com, that instead of renegotiating its investment deal with Bear, China's Citic Securities could just buy the entire investment bank. Of course, this could create concerns with US regulators. Recently, market pundit, Jim Cramer said UBS (NYSE: UBS), Deutsche Bank (NYSE: DB), or Credit Suisse (NYSE: CS) could buy Bear. Shares of Bear Stearns are up about 5% currently.
If he was talking about just having money at the firm and not the stock, why did he put up the stock chart in the video? He could have talked about the agencies that protect your money due to failure, but he didn't. He specifically talked about their potential buyout.
Watch for a Takeover Bid for Bear By Jim Cramer RealMoney.com Columnist 1/24/2008 11:13 AM EST What's been missing here? What else happened in 1990 besides investments from overseas and a Fed that cut rates? Takeovers. I think they are about to occur. I keep thinking about the changes at Bear Stearns (BSC) , where a great brand name with great investment banking has fallen 90 points from its high. Bear has good stock trading, good prime brokerage and a good fixed income, ex mortgages. Cramer: Bear Stearns Ripe for Takeover While Alan Schwartz is a good man who can do a decent job at Bear, I have to tell you that I think that this company is too valuable to others to be independent. Just too valuable. In short, I think it will be taken over. I have to believe that UBS (UBS) , which needs to shore up investment banking; Deutsche Bank (DB) , which wants to own prime brokerage; or Credit Suisse (CS) , which needs better stock trading; could all be expected to bid for this company. I also think the fact that Jimmy Cayne, the chairman, needs to reward shareholders who have stuck with him, and get something big out of this company. Bear has scrubbed the books; I don't believe there are any hidden skeletons. It makes for a nifty $15 billion acquisition -- it is currently at $12 billion, half of what it was! Most important, this stock acts too well for me to think that it's not going away. Yes, I am predicting it: Bear will be bought, and it will be bought at a hefty premium as part of the needed consolidation during this period. I would buy it. And I would buy calls on it out a month. I think you will make great money. At the time of publication, Cramer had no positions in the stocks mentioned.
This rich person deserves to lose all his money if he has to rely on some moron on TV for financial advice while he can afford to have an account at BSC.
cramer's thing (which i didn't see) is on the daily show tonight! and his new show will be (paraphrased) "no matter how good i am for the next 10 years i will never make up for the money i lost people last tuesday."