Drop in Netflix Stock Price Makes CNBC's Jim Cramer Look like an Idiot

For months over the past year CNBC analyst/host Jim Cramer touted Netflix stock. He said over and over how great a stock Netflix was, and how they were a great company. He recommended the stock to people constantly, saying how great it was.

Jim Cramer Recommended Netflix Stock to People on His TV Show

Even when Netflix announced major price increases, Cramer said the stock would do fine. He said the price increases were not that big a deal and that Neflix knew their customers. To be fair, Cramer did warn a little when Netflix stock got really hot and soared to over $300 a share in July. But all he did was tell people to wait until NFLX went down some, and then to buy the stock.

Netflix Stock Has Plummeted from $304.79 to $75

Since July, when Netflix announced price increases, the stock has pretty much gone down like a rock. In July, Netflix hit an all-time high of $304.79 per share. It has since had a stunning decline to were it is now trading at $74.91 in pre-market trading on October 25, 2011.

Netflix stock has now declined by $229.88 from its all-time high in three months. If you had listened to Jim Cramer and bought the stock when he recommended it, you'd be sitting on some mighty huge losses. The decline in Netflix stock makes Jim Cramer look like an idiot.

Jim Cramer Also Said that Lehman Brothers Collapse was No Big Deal

Netflix is not the first time Cramer has said something stupid. Back in 2008, when Lehman Brothers was in trouble, Cramer came on the air day after day after day telling everyone that the government should just let Lehman go bankrupt and then sell off the assets. He said it would be simple, and not a big deal, to just unwind Lehman Brothers from all their positions.

How did that work out Cramer? About as well as if Kramer from the Seinfeld TV show was making the decision. Lehman went under and caused a massive liquidity crisis, and a financial meltdown.

Cramer Praising Ben Bernanke is Like Praising the Captain of the Titanic

Recently, Jim Cramer has also taken to praising Federal Reserve Chairman Ben Bernanke. Cramer says that Bernanke prevented another Great Depression, which is complete nonsense. The existence of the FDIC, as long as Congress forces the Federal Reserve to fully fund the FDIC, effectively prevents another Great Depression from happening.

Ben Bernanke played a big role in causing the financial crisis by withdrawing almost $750 billion dollars of liquidity from the economy prior to the crisis. Cramer's praise of Bernanke is like someone praising the captain of the Titanic because not everyone perished when the ship went down after hitting an iceberg in the North Atlantic.

Jim Cramer is Good at Making Himself Look Like an Idiot

The collapse of NFLX, or Netflix stock from $304.79 to $74.91 in three months, after Jim Cramer had recommended the stock to people, is just one more example of how clueless Jim Cramer is. The drop in Netflix stock once again makes Jim Cramer look like an idiot.

For more see What's Wrong with Ben Bernanke?

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