Another reason not to listen to the media about the market.

Jim Cramer is the host on CNBC’s mad money. He gives out stock advice on which stocks people should pick. On March 11th Cramer received an email on his stock advice web site from someone who wanted advice on there investment in Bear Stearns. Cramer told the email-er that Bear Stearns (NYSE-BSC) wasn’t in trouble and advised the writer to keep his money in the investment bank

“Dear Jim: Should I be worried about Bear Stearns
in terms of liquidity and get my money out of there?–Peter

Cramer says: “No! No! No! Bear Stearns
is not in trouble. If anything, they’re more likely to be taken over. Don’t move your money from Bear.”

Bear Stearns stock price was $62.97 on that day. It fell to $3.80 a share the very next day. On March 17th it was announced that J.P. Morgan Chase & Co. was purchasing Bear Stearns for $2 a share.

On March 23rd Cramer appeared on CNN’s show Reliable Sources to explain what he really meant when he advised viewers to not take there money out of Bear Stearns. During this episode he said that he was telling people to not take there money out of the bank and was not commenting on the stock. He did admit that he was wrong about the health of Bear Stearns, but insists that he was not talking about there stock when he said Bear Stearns was not in trouble.

Things that make you go hmmmmmm.

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