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Friday May 19th 2006

'FED- Up'


Cramer told viewers that the market was in a "classic dive with everything in free-fall...wasn't just a soft patch or some weakness".

Why, why why do you ask?  Because The street realized that The Fed (Federal Reserve) could raise (short-term) interest rates to 6.5%.  

This happened back in 2000, when the NASDAQ was blowing up.  Then too, the Fed began raising short term interest rates.  Cramer called this "The biggest and most stupid  mistake imaginable", likening this move to launching nukes on stocks.  People lost fortunes.  (Jim Cramer had enough foresight to get out just before the 'carnage', the millions he managed still intact - editor)

The Fed is worried about speculation, and noted that although the Central Bank may be more interested in commodities, the effect is the same because they use"the same blunt instrument..crush speculators wherever they may be". 

The bottom line, is that the Fed will probably raise the rates, and the only way to avoid getting hurt is to KEEP A DIVERSI
FIED PORTFOLIO!  Don't keep all your eggs in one basket.
Friday Night's Report

'Best Five'
Five stocks that will benefit from the carnage.


'Natural High'
 
Make Mad Money from the decline of natural gas prices.


'FED-up'
 
Jim descisses the FED, what they are doing and why.
      
                

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