Is Wall Street Still America?

Remember that old ad slogan? "When E.F. Hutton talks, people listen."

Wall Street uber-ranter Jim Cramer wants America to keep listening to what Wall Street says, but no one is in the mood right now.

Cramer took a stab at reasserting the stock market's importance in setting the agenda yesterday morning in an appearance on the Today show. Discussing the market's plunge this week, the CNBC commentator said: "We have an agenda in this country right now that I would regard as being a radical agenda. We had a budget come out that I think put a level of fear in this country that I have not seen in my life and I think that changed everything."

Asked by Today host Matt Lauer if President Obama's policies are "shareholder-friendly," Cramer responded: "Shareholder friendly? This is the greatest wealth destruction I've seen by a president." Then, responding to a comment by CNBC colleague Erin Burnett that President Obama's policies might be good for the country overall, Cramer said:

The stock market is the country right now. This is where people's wealth is. This is their pension plans, their 401(ks)s, their IRAs.

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I'm sure Cramer and the people who run CNBC wish that were true. But Wall Street's credibility is so badly shot that few people give credence to the "market verdict" on the president's recovery plans or anything else. What's more, from a retirement security perspective, Cramer's comment that "this is where people's wealth is" was never true in the past -- and it sure isn't the case today.

The average American has a retirement savings balance of about $60,000, according to the Center for Retirement Research at Boston College -- hardly enough to be central in a household's retirement security planning. Only 63 percent of eligible employees even participate in their employers' defined contribution plan, according to Fidelity Investments. More broadly, only 47 percent of American households owned equities or bonds in 2008, according to the Investment Company Institute.

Obama Press Secretary Robert Gibbs framed it just that way when he was asked yesterday about Cramer's comments. "If you turn on a certain program, it's geared to a very small audience," he said. "No offense to my good friends, or friend at CNBC. But the president has to look out for the broader economy and the broader population." It was reminiscent of the smack down Gibbs delivered to CNBC correspondent Rick Santelli after his ridiculous rant last month from the floor of the Chicago Mercantile Exchange about the importance of market winners and losers.

Here's the other interesting thing: Obama's policies aren't provoking the "fear" Cramer claims is rampant in the country. According to the latest NBC News/Wall Street Journal poll:

--68 percent of Americans have a favorable view of the president, including 47 percent whose opinion is "very positive."

--67 percent feel hopeful about his leadership.

--54 percent say Obama has the right goals and policies for the country, and 57 percent "tend to support" the stimulus package.

--41 percent say the country is headed in the right direction, up from 26 percent in January.

I'm not claiming that Americans aren't scared, of course. Those of us who do have retirement portfolios are down 40 percent or more, so there's no shortage of fear to go around. But the system of retirement saving based on investor-managed accounts has failed to encompass all of America in the way Cramer claims. It wasn't working well before the market meltdown -- and now it looks less relevant than ever.

Instead, the talk in Washington focuses on finding new ways to insure retirement security. Retirement experts are calling for safer, more automatic savings options, ranging from a so-called Automatic IRA that converts to an annuity upon retirement to a federally-run pension program that would sit alongside Social Security.

Cramer and all the other market pundits are still talking. But is anyone listening?

UPDATE: Jon Stewart took apart Kramer and Santelli limb by limb last night in a brilliant send-up of CNBC:

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Comments

[Crowhaul]

Wall Street was never America. And the sooner that Americans understand the difference between "capitalism" and "free enterprise", the better off they'll be. Capitalism is the movement and positioning of large blocks of capital; very few Americans are truly involved in this process. Free enterprise, on the other hand, is something many, many Americans are involved with: Free Enterprise is our right to freely sell a product or service. As a small business owner, I would suggest that the answer to the author's question is that Free Enterprise is America...­but definitely not Wall Street.

[sposton]

Wall Street is just another machinery for transfer of wealth from many to few. Our government enables it all and places a stamp of approval so that it can be a legal robbery.

[IndolentFlourish]

We are living in interesting times. I enjoy watching the story unfold; it is one of the few entertainment pleasures left that I don't have to pay for.

[SOLERSO68]

wal street = con men..All con men react the way they did when you tell them they cant have any money.

[Persson4]

No Wall Street is not America. Wall Street is a Socialist-Capital driven experiment that reached its zenith due to a collective greed driven by aging boomers. We have about 25 years until the next boom comes of age. I invest because I believe in the product or the company philosophy. Not because of CNBC. Cramer it is time to start looking for a new job.

[steelmill]

Wall Street are con artist

[dgscol]

How about a government program to let people buy into government bonds as a substitute retirement plan? These people should not be in the stock market, and certainkly not invested in Industrial based stocks.

Geitner has a harder job than Les Aspin, but Les did the job. Geitner is faking. He is ducking taking on the banks, appearing to promote Obama's agenda. Congress is acting like there is no economic crisis. They seem agree with Phil Gramm, and are just spending to heat up the economy. There is no one to swing the system around where it belongs. We are plunging in deeper rather than pulling out.

[elcid66]

Cramer's credibility suffered enormously when he called a bottom to the market at 11,400. Since then he's been struggling furiously to get his street cred back with his fellow greed heads. Now he thinks it's time to join in with his fellow scammers and try to find a scapegoat in the form of the current Democratic, black President. He does not yet get it that he and the Republicans have no credibility, that Obama is too smart for them. Plus, we who voted for Obama, get to decide who is going to be President from now on.

[Keith52]

Yes that is where all our money is.... because WE HAVE BEEN LISTENING TO WALL STREET. Now.... Wall Street.... listen to us. Yes, populist outrage...

[mommadona]

No.

The stock market is a casino.
They broke it, they own it.

Time to put business in perspective.
It's dog eat dog.
It's always "win-lose".
It is quaint and out of touch with reality.

It is a failure.

[Chavez08]

Ponzi-nomics

[Chavez08]

There were two economies, one for the most affluent and one for those who are less fortunate. The old system assured no wealth would ever trickle to 90% of the population and in fact concentrate to the 1% most affluent who do the least to earn it.

Now there is one economy and we rise and fall together, Wallstreet doesn't seem to have figured that out yet.

[jms2qc]

This is a great point. People like the fact that there actually could be some spreading of the wealth, that they won't always have to look up to that 1% and resent them. Equality is what this country is based on. More importantly, equal opportunity, and right now everyone is in the same boat.

[exoevolution]

Wall Street has proven itself to be a corrupt casino run by people that elevated people like Bernie Madoff to great levels of power.

Wall Street is FAR MORE dishonest than the old mob is Vegas ever dreamed of!

Cramer, you have been a cheer leader for this criminal corruption for YEARS!

Like the old Vegas - Wall Street now needs MASSIVE REGULATIONS & OVER SITE to get rid of the GANGSTERS that have hijacked our financial institutions & that includes the taking heads like YOU!!!!

The days of the SUPREMACY of the WEALTHY is over!!!!

[Chavez08]

Cramer, and CNBC in general, have had a long string of credibility problems. I don't know too many people, Republican or Democrat who care too much about Wallstreet at this point. People want secure employment and decent interest rates so they can keep their houses. I don't know a single person who wouldn't pull their entire 401K this second if even half the penalties were lifted

Wallstreet is an unregulated casino and nobody feels like gambling right now. Bring back jobs, solve the healthcare problem, stop the banks from robbing us blind and maybe I'll think about investing in the future.

[DuganS1]

Jobs won't come back until the equity market does. One reason for the large increase in the unemployment rate is because of decreased spending due to the big drop in the equity market. So if you get equity values back up, people will spending more again, and thus employment will increase.

[RoloTomassi]

You are hardcore, I'll give you that...but you are also clearly DELUSIONAL.

[DiogenesOfAlaska]

It's very unclear to me whether Mr. Cramer wants the president and the treasury to 'do something' or not. If I am not entirely wrong, he wants both. This leaves me with wishing Mr. Cramer good luck.