Cramer sees Obama winning in landslide

Only a few observers are taking a unique stand on the election, just as fewer analysts these days dare to make bold calls.

By TheStreet Staff Nov 5, 2012 12:25PM

Larry Downing Reuters thestreet logo

By Rocco Pendola


Two "news" stories passing like ships in the night:


The speed and intensity of the 24-hour news cycle render it difficult for most of us to make connections between seemingly unrelated articles. Over the weekend, however, I stopped and stared at two spectacles -- one that went viral, the other that went way under the radar -- long enough to make an association.


Led by Business Insider, the standard media hacks and even some otherwise credible outlets such as The Atlantic came together to skewer CNBC and TheStreet's Jim Cramer for predicting President Barack Obama will win Tuesday's election in a landslide with 440 electoral votes.


This is what 98.5% of the media do. A handful instantly produce the easy answer, and the rest follow like the uncritical "cut-and-paste, let's link to somebody else's work for page views" hounds that they are.


Few take the time to look for meaning, deeper messages or connections between seemingly unrelated events or concepts.


Almost everybody, in unison, branded Cramer a fool for being so far outside the lines of consensus.


It's unfortunate that Cramer had to take to Twitter to explain himself, but such is life in a world that prefers dichotomy in lieu of nuance and black-and-white over 50 shades of gray (that last one might not be true, but you get the point).

In Barron's over the weekend, Jack Hough wrote a solid piece titled "When Bold Analysts Say Buy" that sheds unintentional light on the Cramer blowup.


Riffing on Wall Street analyst earnings estimates, Hough writes, "Bold forecasts have (become) scarce. . . . Estimates are more closely huddled together than at any time since 1986."


At the same time, research from the University of Texas shows that when revised estimates "move away from the consensus," they "are more likely to prove accurate than those that move toward it."


Hough pulls a few examples.


An analyst at Bernstein Research upped her 2013 earnings-per-share estimate on Humana (HUM), which reports Monday, to $9.20 a share, way above the consensus of $7.14. That's about as "extreme" as Cramer's call on the election.


At the micro level, we're talking apples and oranges. I get that.


From a macro perspective, however, if you follow the stock market and can't stand wishy-washy, lazy analysts who all come to the same conclusions sans unique flavor, you should appreciate how Cramer stands out against most everybody else who calls Obama vs. Romney neck and neck or pretty close.


They put themselves in a situation in which they can't be wrong. This is not about being credible or doing careful analysis.


The cats who put the popular vote at a split or go with 290 to 248 or 277 to 261 in the electoral college set themselves up not to fail. Even if they're wrong, they're right.


Who's going to take a pundit to task for missing Ohio and Minnesota or even Pennsylvania? If a miss there throws off your prediction, you walk away unscathed with the benefit of the doubt.


The same goes for Wall Street analysts who blend in with the crowd. They're making the safe bet.

I like to give Piper Jaffray analyst Gene Munster a hard time for being an Apple (AAPL) cheerleader. He probably deserves more credit than that.


He stands out, in part, because he's bold. And he's not afraid to walk the line between "objective analyst" and living, breathing human being with an opinion. There's a ton to be said about that.


While he might end up "wrong" on some of his more "extreme" Apple takes, he, along with Brian White at Topeka and Eric Jackson of Ironfire Capital, tend to stimulate the best conversation around one of the market's biggest battleground stocks.


And, more importantly, when it gets down to what really matters -- what Apple does over the long haul -- they have been consistently on the mark.


And, even more important than that, like Cramer, Munster, White and Jackson give all of the other guys -- unable to muster an original thought if their lives were on the line -- something to talk about.


At the time of publication, Rocco Pendola held no positions in any of the stocks mentioned in this article.


More from

Nov 6, 2012 1:37AM

I certainly hope Romney wins. Obama has had 4 years to crash the world financial markets and start 2 wars and has failed to accomplish any of these goals. The last Republican we had as president really knew how to crash business and shoot the holes in numerous third world county folk. Also, with Romney in office we could scrap those worthless social security, Medicare and medicade programs to pay down the debt and fund the next big tax breaks for the millionaires.

Nov 5, 2012 11:13PM

Hey moron, you mean things like:


"The debt is irresponible, I will cut the deficit in half" , then add $6 Trillion to the debt.


"I will have the most ransparent administration in history", then have more closed sessions and more screwups classified.


"I will have no lobyists in the whitehouse", then parade a record number through the door.


"The stimulus  will lower unemployment to 6%", then have real UE above 12% for his entire term.


Obummer never lies, flips, or dodges.


"Im for all Americans", then consistantly fukk the taxpayers while rewarding the lazy dumb slobs at the bottom.


" I think about creating jobs the moment I wake up till the time I go to bed", I will give him a pass on this one. He could think it about  24 / 7 and still not have a clue.


"If you can't run our your record, make the campaign about small things", he did follow through on this one.


 "All bills will be available online for at least 24 hours", then he gives us "pass it to see whats in it".

Nov 5, 2012 8:38PM
Democrats are freeloading government dependent whiners. Its always someone else's fault for the mess they are in and the taxpayers responsibility to get them out.
Nov 5, 2012 8:15PM
Obama will win with over 300 electoral votes in , yes a LANDSLIDE!
Nov 5, 2012 7:49PM

Obama in a landslide, you say?....Just like everything is fine with Bear Stearns??

Nov 5, 2012 7:25PM

One thing we have learned from this election is the news media outlets can no longer be trusted. IF CRAMER IS RIGHT, it means that every poll that said 50/50 or 48/48 was completely wrong and biased. We already know FOX NEWS is a fraud. This is not really news and there should be FCC oversight of companies that pass themselves off as news services which in reality are pandering to a particular religion or political view because the old credo of unbiased reporting is dead. When Walter Cronkite came out against the Vietnam War, it ended unbiased reporting and he should have been sued. Just give us the facts and pictures and keep the dumb opinions and short-skirted fake blondes on the Comedy Channel. I predict that we have been lied to and our President will easily win re-election by a large margin. It doesn't matter who wins to stocks because the stocks are going up. What matters next is getting rid of the evil minions of the far right in our Congress before they do more of nothing in 2013. VOTE OBAMA and sweep Congress clean too!!!!! Separation of church and state. No more religion in politics. VOTE OBAMA!!! I trust my President to run the government like a business not like a church. VOTE OBAMA!!!!

Nov 5, 2012 7:21PM
The best thing that will happen if Obama wins is that we will have a good count on how many people are idiots!!!
Nov 5, 2012 7:14PM
I have faith in the American people to pick someone who says what they mean and means what they say. That can only be Obama. I will lose all faith if Romney wins because that means the majority of Americans have chosen a man who has flip-flopped, lied and changed his story so many times to match the demographic he is pandering to that he absolutely cannot be trusted either in business or politics. I believe he will use his power as President solely to advance his cult and to destroy the middle class. He thinks going to Costco helps him relate to the middle class. Romney thinks cutting social security, medicare, medicaid to zero, which he admitted already, will help reduce the deficit while decreasing taxes on the rich and raising them on the middle class. In short, if Romney wins, it means America will implode because we have the most absolutely stupid people on the planet concentrated in one place. Who would vote for someone who admitted he will take every benefit you have coming away from you and only help the rich? VOTE OBAMA or die stupid.
Nov 5, 2012 6:26PM
I view Cramer's' predictions just like I do his stock predictions. If he says it, the real answer is just the opposite.
Nov 5, 2012 6:10PM
 Hi, Cramer  knows republicans are only for the rich guys, they dont care about food stamps for old people or mentally handicaped people,  but they will have to stand before Creator at the end of there life and explain why they did not try to help there fellow man like the Democrats do !
Nov 5, 2012 6:06PM

I am an independent and will more than likely vote for a third party candidate as a means of getting 5% so as to make them eligible for inclusion next go-around.  However, your views on Obama disrespecting the military is false - I am a retired Marine and have been personally affected by presidents since Reagan.  If you look at the records, Obama has given more to the VA and other military veterans programs than any other president.  He always seems to be on the right side of the Vet and I like him for that.  He is also correct when he says Mitt doesn't understand how the military functions - there is a lot of waste in DoD that needs to be cleaned up.  I just don't believe in bigger government to accomplish the mission; and I don't believe in throwing more money at the DoD (Mitt) to establish national security.  He (Mitt) seems to be talking from sound bites provided to him - he is not fooling people currently serving or have served.  Most in the military will vote for him because he is anti-Obama not because he is capable.  Bush is the one who sent the military into 2 wars and did not fund those very same organizations to the level of Obama.

Nov 5, 2012 5:57PM

The thing I like about Romney is that no matter where you stand on any issue, he has probably taken the same position at some point in his political career.


Governor Romney was a centrist who believed that government had its place in society.  Candidate Romney doesn't like government and would like to get rid of most programs.


Governor Romney invented Obamacare.  Now he wants to dump it and go back to the way it was.


Governor Romney was pro choice.  Candidate Romney wants to restrict contraception and abortions.


So what's not to like about Romney?








Nov 5, 2012 5:52PM
Ha! Ha! Ha! Looks like Cramer suffers from cranial rectitus.
Nov 5, 2012 5:22PM
Is this the same Kramer from Seinfield??? Sounds like something he would say. Has anyone ever divided the sountry more than Obama?? The last four years saw the US lose a lot of respect in the world. Does anyone remember Obama telling the Russians to tell Putin to wait until after the election, that he would be in a better position to work with him. Why has he constantly disrespected our military and the veterans? We need Romney to start getting us back to being a democracy instead of a socialist republic.
Nov 5, 2012 5:19PM

 If Obama wins in a landslide, it would definitely show that this election is fixed.

Nov 5, 2012 4:59PM
God help us if that loud mouth Cramer is correct.
Nov 5, 2012 4:54PM
The only sure thing is George W. will win his 4th. term in a row.
Nov 5, 2012 4:45PM
Cramer is a Democrat and is taking a strong position on obama winning.  That must mean he is really concerned about Romney pulling ahead.  A couple of days ago, only 31% of registered republicans had voted.  If they all show up today or tomorrow to vote, Romney will win.
Nov 5, 2012 4:21PM
I think the Dems are headed for a disappointment. I cannot wait to see Cramer whine if Romney wins. Four more years of Obama and this country is done as a world power. I hope the people with sense in this country get out and vote for Romney.
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