Jim Cramer's Housing Bottom Call Revisited (VIDEO)

Remember when we passed along Jim Cramer's emphatic call of a housing market bottom? It's time to take another look at Cramer's proclamation.

You may recall that in June, Cramer said, "I am frantically trying to buy multiple properties right now." Cramer went so far as to definitively declare a bottom to the housing market. His words: "This is patently obvious."

Karl Denninger points out just how wrong Cramer was. Take this Bloomberg report from today, for example:

"Home price declines in the U.S. accelerated in the second quarter, dropping by a record 15.6 percent from a year earlier, as foreclosures weighed on values.

The median price of an existing single-family home dropped to $174,100, the most in records dating to 1979, the National Association of Realtors said today."

Here's Denninger:

"Jim, we haven't seen a decline in the second derivative. In fact, housing prices dropped by a RECORD 15.6% in the second quarter....But remember Jim - you promised your viewers that it was over. That it was ok - and safe - to go back into the market. You in fact told everyone last night to buy stocks again, and you were in fact on an unmitigated pumpfest. The facts don't bother you do they Jim? I'll lay odds you won't mention this report tonight on your show, nor will you apologize for being wrong."

WATCH Cramer's housing bottom call from June:

To be fair, Cramer also said in that interview that he was running out to buy Bank Of America stock. Since the interview, BofA's stock price has risen to $16 from $13. Perhaps Cramer should stick to touting stocks.

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Comments

[DrRoberts99]

Anyone that would take financial advice from the HP deserves to die a pauper. To be fair, Jim Cramer called the stock market bottom in March when NOBODY wanted to buy stocks. In March, BAC closed as low as 3.17 and Jim began touting the stock around 4. It closed yesterday at 17. Thats more that a quadruple in less than six months for those of you that are fractionally challenged. The market does not ring a bell informing potential home buyers when to buy. Jim made a call based on a realistic assessment of the real estate market. As with a stock, one can never hope to buy at the absolute bttom nor sell at the absolute top but this writer would wager that Cramer will make more on HIS real estate investments than his wanking critics ever will. One might also consider the fact that the above video was made in June, which is at the END of the second quarter.

[DemocraticVoter]

Not if he buys his own picks he wouldn't.

[DemocraticVoter]

Barron's Feb. 8, 2009:

"Cramer's recommendations underperform the market by most measures. From May to December of last year, for example, the market lost about 30%. Heeding Cramer's Buys and Sells would have added another five percentage points to that loss, according to our latest tally."

http://online.barrons.com/article/SB123397107399659271.html

[TalkingOutLoud]

It seems we've stopped believing our eyes. We look at a situation and feel the impact of that situation, however, many want to be told what to think and how to feel. We American's need to re-educate ourselves and learn to believe and trust our educated-gut. I say educated because to response solely on gut instincts is just as unreliable as being sheeple without education.

[PragmaticStatistic]

Carl Sagan once wrote, "If everyone tells the truth only to a degree determined by individual judgment, then incriminating or awkward facts might be withheld, events shaded, culpability hidden, responsibility evaded, and justice denied. So the law strives for an impossible standard of accuracy, and we do the best we can."

We as listeners need to at all times carefully evaluate all sides of an issue, and think about the goals and reliability of those whose judgment we value most, because it is those people who just might have an agenda that can harm you the most when we let our defenses down. And, this even applies to me.

[argyle]

No one can predict the market, yet this is his job. I blame the people who hired him and the people who educated the people who listen to him. Give me a show and I'll pick some stocks too.

[mcamp52]

What is it about these financial experts? They are no different than the people that give weather reports and forecasts. Both are WRONG more than they are right.

[gtt]

oops. Cramer needs to go on Comedy Central again to be set straight. The Daily Show's writers have a better appreciation and understanding of our basic economy than does this guy.

[Gospelnetics]

Save your money!
Funeral programs

[allamericanelaine]

According to the talking heads on CNBC the economy is great....and they don't understand why people aren't buying more things....could it be because they are unemployed, broke, and facing foreclosure? Of course Cramer was wrong….just look at any neighborhood or put your house on the market. I wonder when he last walked into a grocery store and actually purchased a loaf of bread?

[ObamAtomic]

What did he knows?
Jim Crammer,clueless!

[dadw5boys]

Churn those stock Jim !

Get people to buy and sell a lot.

Millions of trades even at $4 a trade is making someone money.

I wornder who ?

[redraspberry]

Just short Crammer's picks. You'll come out ahead.

[veritas2u]

Perhaps things are looking up in his mythical Cramerica!

[StopMakingSense2]

I'll stick with my Magic 8 ball. Has a better track record..

[mrspiffy]

Christ...what a blowhard.

http://brandnewnormal.blogspot.com/

[cygnus workstation]

at the end of the day it's the middle class that gets scr3wed through inflation' loss of jobs/job security and stagnant wages- a trend that has persisted for decades with the advent of so called 'reagan0mics'

hat tip to http://www.iamned.com ..