More BS from CNBC’s Jim Cramer

Tout TV at its finest:

“The Fact is that they’re (consumers) shopping” (0:40 in)

No Jim, they’re not. We got the July retail sales numbers today.

The only thing people are buying more of is booze!

After the blatant false statement about WalMart’s actual results – he claimed people “are shopping”; the FACTS are (from their own press release):

Revenue including membership income in the quarter ended July 31 fell 1.4% to $100.9 billion from $102.3 billion.

Cramer then goes on to claim that because moving averages are going up means the market should be bought.

Look folks, this is how the “game” on Scam Street works.  You blatantly bullshit people with something that is just plain not true and then you go off on a tangent into something you claim supports your thesis and there are no honest reporters to call you out, ergo, your false statement stands unchallenged.

This then gets the sheeple to buy buy but and voila – moving averages go up!  Unfortunately they go up right to the edge of the cliff and then all those people who listened to you lose their shirts.

Well Jim here’s reality for you and the rest of your cronies on CNBS from the retail sales report this morning:

  • Electronics, the “high tech will save us” meme of Cramer and the rest of Tout TV: Down sequentially (8,156 .vs. 8,275), even though this is the start of “back to school” buying of laptops and similar.  It is also down from $9,554 last year, a monstrous decrease.
  • Building materials, down as well, despite the so-called “better home starts”, again sequentially, July from June.
  • Gasoline, down despite the price of gasoline being flat to slightly up. Uh, isn’t this summer vacation driving season?  Ah, people aren’t going out are they?
  • Clothing is up a bit sequentially ($17,131 .vs. $17,027) but down huge from last year ($18,540)
  • General merchandise stores, down sequentially and off about 4% from last year.
  • Non-store retailers (e.g. online buying) up a bit, $24,058 .vs. $24,025) but down big from last year ($25,388)
  • There was, however, one green shoot.  Bars (in “food and drinking places”) were up both sequentially and year/over/year.

When does this clown get taken off the air?

I understand differences of opinion, but this not opinion – it is blatant and outrageous BS.  WalMart’s revenues were down and while earnings did beat expectations, the fact is that their top line decreased, which means they SOLD LESS, not SOLD MORE.

THE TOP LINE CANNOT BE FUDGED – IT IS WHAT IT IS, AND SINCE WALMART IS STILL OPENING NEW STORES THIS MEANS THEIR RESULTS ON A PER-STORE BASIS WAS EVEN WORSE THAN IT APPEARS!

The Media is hell-bent and determined to get you going with your “animal spirits.”

But an animal does not think before he acts, and if you do that as an investor you wind up a bagholder, just like those who are chasing three month old data on hedge fund purchases in the financials – which CNBC touted last night – will be.

LOOK AT THE FACTS FOLKS, NOT THE BS PUT FORWARD BY THE SO-CALLED “MEDIA.”

Posted by Karl Denninger
Thursday, August 13. 2009

Source: The Market Ticker

Leave a Comment