2 mea culpas goose the market
Zuckerberg and Germany have offered up apologies of sorts -- and the reaction is warranted.
In the past 24 hours we have seen some heady mea culpa-izing. First we got Facebook (FB) CEO Mark Zuckerberg telling the truth that the company got caught flat-footed with the wrong software for mobile. That was a breathtaking interchange. Humility is in incredibly short supply in Silicon Valley, so I found it delightful. It was charming!
But it was also important because, until that interchange, we were hearing nothing from management, whoever that was, about any issues at all. In fact, that quarterly conference call made investors feel as though Facebook had mobile down to a T, and that's one of the chief reasons the stock got hammered so hard.
So we've seen recognition that the company has been going the wrong way and an understanding of the opportunities for mobile and for the Nokia (NOK) Lumia 900. With that, Facebook has taken a step toward establishing credibility in people's eyes.
An understanding of what went wrong is incredibly positive, especially when you have an obviously intelligent and cunning guy up top who is willing to admit that the initial public offering was a disappointment. Hey, don't snicker -- we didn't even hear that before!
Two other issues remain, though.
The second is the lock-ups. If you really think the company is going to "fix" mobile, wouldn't you want to let settle the billions of shares that are going to come to the market? I mean, I am a huge believer in AIG (AIG), but the government overhang has mattered tremendously to timing.
No matter what, though, the mea culpa here makes Facebook more worthwhile as an investment, and the rally makes sense to me. I don't want to trade it personally. But a play here is not inexplicable -- and it is rational.
Away from this, I think the German supreme court's ruling likewise amounted to a mea culpa. The ruling basically says, "Yeah, we are a part of Europe and we are a part of the federation, so we have to pay our dues, too."
That's what's been lacking in Europe -- some "all for one and one for all" non-Mickey Mouse compact -- and I think we got one here.
I instantly heard that the Germans are committing suicide with this, but I heard it only from people who are (a) underinvested (b) short the euro and/or (c) short gold.
So, alas, I know it's good news. Anything that makes for more of a federation, galactic or otherwise, is a win for the bulls. This supreme court decision paves the way for more unity and recognizes that Germany is no longer an island.
That's what the bulls wanted.
They got it.
Two "I'm sorrys" send market higher.
If only things were always as simple as that. But they are for the moment, that's for certain.
Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and is long AIG.
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They've hardly been that since, for some time now, they've repeatedly and consistently kept the poor debtor nations afloat. I don't blame the frugal German taxpayers for getting" ticked off" at having to bail out their overly self-indulgent fellow Europeans.
Lyin' Ryan and Mitts Romney.
Someone tell me where Ryan got his $7 million wealth working a lowly job. Did he marry into it?
Why didnt the GOP stick with Donald Trump? At least Trump's kids know how to dress.
AFTER THE ELECTION, ARMAGEDDON AS DO-NOTHING CONGRESS IGNORES FISCAL CLIFF AND RECESSES IN MID-DECEMBER. UNTIL THE ELECTION, BULL MARKET !!! OBVIOUS OBAMA WIN. Romney pretty much nailed his coffin today with inappropriate and false comments about Obama and Libya. Two religious fanatics, Romney and Ryan, who can't stop lying and apparently will never ever explain what their budget plans are. I don't think these two idiots will even know what hits them in November when they lose. I honestly feel sorry for the Republican Party. GOP has been taken over by nuts. They should have gone with Donald Trump. At least he was real. VOTE OBAMA!!! BUY STOCKS!! DISNEY GOING HIGHER!!!
Mitt Romney is not running for election in 2012. He's running for election in 2016.
I remember when President Bush announced that FDIC insurance had been raised from $100,000 to $250,000. That was in 2008, when he advised us that the stock market was a good place to invest your money. I don't remember his comments regarding Grandpa and Grandma's investment in General Motors common stock.
I don't know what is going to happen when Ben authorizes QE4 or QE3 or whatever the hell it is. But it will be a bad thing.
I don't know how much of the votor base is investors. Interesting, because the intelligent money people know we have to get Ben out of Washington, DC. It's a given.
At all events, the smart money is not investing in big pharmaceuticals. No matter how super their super drug is, Medicare and Medicaid will never cover it. You'll have to drive to Canada to buy it.
Anyway, the word coming down is the same everywhere. Invest in Valero, BP, COP, XOM, TNK, VLCCF. Every time you fly to Los Angeles and head out onto the freeway in your rental car, it is obvious where the big money is and where it is flowing to. And while you're gassing your car, be sure and light up a MO. That is the moment that you finally visualize the American dream.
Anyway, time to log off and go out for a smoke.
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An interest rate tease in The Wall Street Journal sends the market into an optimistic tizzy -- but one that doesn't end quite at the top.
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