Jim Cramer is a TV personality that has his Mad Money show. One of the first books on investing and trading I have read was Jim Cramer's Real Money: Sane Investing in an Insane World. As someone who tries to portray himself as an expert in "real money", he made a statement today that I find absolutely hilarious.
Today on CNBC, he said that he sold his remaining bitcoins and used the profits to pay off a mortgage. Which is great a great story for bitcoin. But then he goes and calls Bitcoin a phony money. To quote him:
It was so great to pay off the mortgage. It was kind of phony money paying for real money.
You can watch this short, a minute long video here:
The part I find really funny is that, for someone who claims to be an expert in "real money", who wrote a book titled Real Money, and then another book titled Mad Money along with running a "Mad Money" tv show, not being able to pay off the mortgage until realizing profits from Bitcoin and then call it a "phony money".
The question I would ask him is - "Why haven't you paid off your mortgage with real money you have been making over the decades?"
I understand he has multiple houses and properties. I also understand in some situations it might make better financial sense to keep the mortgage and use the money for other investments.
What I don't understand is how can one define something like Bitcoin as phony money when it in the end translates into a real world financial win, like paying off the mortgage.
It must be just one of those Jim Cramer playing a madman on TV moments.
I have both of his books: the Real Money and the Mad Money. The Real Money was one of the first books I have read on investing and trading topics. While it is an interesting read, I haven't learned much that would help me to benefit in the markets. The book fails to provide the path for beginners to get into the markets. In the end the reader ends up with interesting stories that don't convert into actual knowledge to trade or invest.
I didn't even finish reading Mad Money. From the beginning it became obvious that the book was intended to bring readers to watch the Mad Money show and it also made statements like some if not most of the content in the previous Real Money cannot be applied in markets anymore, because market conditions has changed, etc.
Towards the end of last year and beginning of this year many who expressed negative views about Bitcoin as an investment instrument have changed their minds and decided to invest. Among the TV personalities are Jim Cramer, Kevin O'Leary, and others. They will keep changing their opinions. But Bitcoin will keep doing its thing. It will continue redefining what the real money is.
Jim Cramer bought bitcoins at around 12k. When Bitcoin went above 20K and kept going up, he sold some to take out his initial investment and claimed he only left the profits in bitcoin. At that time he also claimed he would buy back if Bitcoin dropped to 18k-20k range. That didn't happen yet.
I guess it was a good decision to pay off the mortgage if he doesn't believe it will continue going up. I hope he is wrong on that one too.
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Plain and simple: he's lying
He's been flip-flopping on Bitcoin for years, which means he's simply a puppet being told what to say. Makes sense considering he's a forward face of financial investment in the media.
Anyone who does this is bad at gambling. This is a tactic used as a crutch to support psychological weakness. This concept of "Well at least I got my money back so now I can gamble with the winnings and not feel bad about losing it."... Only a smart play if you are prone to going on tilt and making stupid decisions. Again, it's a total crutch that should only be used by people who know they need to hedge against their own emotions.
Not only that, but if you make this play it can ironically put you on tilt, because you'll be more likely to make a stupid decision with the "free money" than you would have otherwise. There's a reason why these people take the job as a TV personality instead of going out and making billions. Those who cannot do: teach. Yikes.
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That makes sense. Reminds me poker, how I wouldn't really care much to lose if it is a free tournament, but if there is buy-in then need to have full focus.
LOL
Yeah good call I was going to bring up poker.
Winner's tilt is an easy way to lose all your gains.
We start making stupid decisions after our stack goes x4 or whatever.
Most of the so called Financial guru's are poor.
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I wouldn't call them poor. But yes, definitely not as rich as they want to show themselves to be.
Wonder what that house will be worth when 3d printed homes flood the market with cheap supply..just saying..
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That is a great point. I need to study up on that to see how far away 3-d printed homes are from becoming a norm.
When he said that it was phony money was he being serious or was it a statement using sarcasim, like thumbing his nose at all the haters out there saying its fake money? Its hard to tell from written dialogue....
Oh I just scrolled back up the post and realize now that you posted a video, its not just an image hahaha. I'm going to watch that and then finish writing this comment lol....
Okay I'm back. He does sound like hes being more serious than sarcastic. Thats weird lol.
This comment turned out to be weird as well, sorry about that hahaha
lol, yes he seemed to be serious. But then again he is a tv personality, so not sure if he can be taken seriously.
LOL that’s going to be one overpriced mortgage 💸 ever! Can’t wait for time to show him what a moron he is
lol
Cramer is a shill for his wall street and banking friends. So I think him attacking BTC is for their interest to encourage people to put money into the stock market. Essentially he is a pump and dumper.
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Yes, he does love his Wall Street buddies.
When it comes to crypto, he is out of his element.
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Yes. Not sure he is great at stocks either. :)
I saw this guy a couple of times and never been able to take him seriously for some reason - seems to be a bit of a court jester than a financial bloke! I don't really understand his sentiment behind "phoney" money though because in the same sentence he basically paid off his house with said "phoney" money.
Like you said, that sounds like a really good investment and a positive story for Bitcoin as a store of value and it worked out for him! The only thing that seemed phoney in that minute clip is, well... him saying that!
Yes, I 100% agree.
i think such statements are geared towards improving his show's ratings. bitcoin is the hottest thing right and everyone seems to have an opinion about it. The fact that he bought and sold btc shows that it is worth something and even more than he can admit to the public. chances are he still had some btc stashed somewhere.
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Yes, he's got it exactly opposite. There is nothing 'real' about fiat USD. Bitcoin is more 'real' by virtue of its definitive nature -- what you see is what you get, with no pretenses and no manipulation.