• Dec 9, 2009
We've spilled some ink about CNBC Mad Money host Jim Cramer before, the financial expert who – as The Daily Show pointed out – missed the whole Great Depression 2.0 thing. Of course, it's not fair to single out Mr. Cramer, as 99 out of 100 economists thought credit default swaps based upon ill-conceived home loans to people with lousy credit was a sure-fired, long-term money-making bonanza.

Regardless, Jim Cramer is very bullish on General Motors' new interim CEO and former Southwestern Bell exec, Ed Whitacre. Says Cramer of Ed, "He was fierce and proud and was going to do whatever was necessary to rebuild the greatness of this once amazing company." Sounds good to us. Especially if Mr. Whitacre applies that devil-may-care acumen to doing-better-but-still-ailing General Motors. GM's problem is, for every Cadillac CTS-V, there's a Chevrolet Aveo.

Put another way, for every Ed Whitacre, there's a Fritz Henderson. Or ten. Still, if Jim Cramer is to be believed, Whitacre is an "assassin of the bad." Unions? Watch your butts, as "he's going to take it to them." Senior management might even be in worse trouble, as Cramer says, "He doesn't need you. He likes to run the place with a shoestring administration." Again, we hope Cramer's right. But we also know that those ten Fritz Hendersons are dug into GM's corporate structure like Alabama ticks.

[Source: Blogging Stocks | Image: Rusty Jarrett/Getty]


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    • 1 Second Ago
  • 27 Comments
      • 5 Years Ago
      Simply put, Kramer's a douche. If he likes GM, then that's the kiss of death.

      BTW, that photo was a still from his NBC primetime, cobbled-together, NASCAR and stock picks TV special. I'm embarassed to admit I actually watched a few minutes, but only long enough to realize that it was 'oh-my-god-how'd-this-get-on-national-TV' bad. Picture this: Here's Jimbo (who obviously knows *nothing* about NASCAR) blathering on about stocks while interviewing some poor, hapless NASCAR driver (who obviously knows *nothing* about anything financial). It was totally staged, awkward, and painful to watch.
        • 5 Years Ago
        My apologies to Mr. Cramer. Allow me to revise my original comment: Simply put, Cramer's a douche. If he likes GM, then that's the kiss of death.

        Feel better now?
        • 5 Years Ago
        I'm pretty sure the Daily Show is a comedy show, not a news show, (that's why it's on Comedy Central, btw) although that's a common mistake as it's usually way more newsworthy than anything on CNN, Fox News or CNN. And if anything, the hit piece on Cramer was more to show how the folks on Wall Street know nothing and are basically throwing darts than to single him out as the only idiot financial genius who had no idea our entire economy was about to implode.

        As a side note, the real success on Wall Street comes from the insider deals and backroom trading, not on honest hard work and know how, although I'm sure everyone knows this already by now.
      • 5 Years Ago
      I've bought my last GM since they took Obama money. Never again...NEVER!!!!! Millions more just like me doing the same thing.
        • 5 Years Ago
        My point was that they should have been allowed to go bankrupt like any other business. This would allow the company to reallign and "right" itself. The greedy unions are alot of the problem along with many, many other issues. But, I blame the Unions more than anything. My .02 Never again will I buy another GM vehicle and I really, really liked their cars. Too bad.
        Christopher
        • 5 Years Ago
        millions of people have stopped buying GM and other domestics since the early 70's.... when they had to wait in line at gas stations only to be told to go home since all the oil shieks decided they didn't like us. they then discovered the little japanese curiosities of the time were good on gas. go'rnment bailouts ain't got nothin to do with that.
      • 5 Years Ago
      "GM's problem is, for every Cadillac CTS-V, there's a Chevrolet Aveo"

      Sadly, it's probably more like 1 to 10 here, if not worse.
      • 5 Years Ago
      @skablaw: I wish there was some way to filter out posts not made by Lieberman. He is the best writer on this site, hands down.
      • 5 Years Ago
      Hey, I don't have anything to add in an argument of people's opinions who have no idea what is going on iside of a company. I just want to say I like the Alabama tick reference from Jesse Ventura's line in the Predator. Roll Tide Roll.
      • 5 Years Ago
      High on GM...standing in front of a Ford. :)
      danno
      • 5 Years Ago
      Does not make any difference..They could ressurect george patton to run g.m. but that would not make one iota of difference..G.m. along with chrysler is finished..the american public will not ..repeat ..will not support any american company..There mindset is asian ..anything asian..makes no difference what the reasons are.. they will not buy any of the so called big 3 products..there-fore g.m and chrysler will be the first to fall..ford may survive....but only with the loss of 4 different cars that have performed below market expectations for years.Japan and korea now controll the u.s auto market..sad as that might be for me a 34 year former employee of g.m.You think detroit and pontiac michigan look pretty bad now..wait and watch.. more cities will fall just like them that currently depend on these companies for there survival.I have watched this slowly develope over the last 12 years or so..Hope there is no world war..for we can know longer build what we would need..
      • 5 Years Ago
      GM has such exciting product for the average consumer. Take the stunning Chevrolet Impala for instance. I owned several of these in the sixties and think the power, styling, creature comfort, and whiplash performance of this newer model in paticular demonstrates why I have left GM after 45 years of loyalty. Every manufacturer can point to a "specialty" nich and be proud. The problem is that the largest segment of people buy the median product, where the manufacturers focus on style and value is what sells cars and makes money. So, kill the performance and styling divisions, and give us more SUV's. Oh....and put a muzzle in your mouth while you're at it. Same effect. By,By.....
      • 5 Years Ago
      Stop using the CTS-V as the poster child for GM's greatness. I doubt that anyone seriously doubts GM's capability to build state-of-the-art cars but there is too much focus on cars like this. While enthusiasts may find them interesting to talk and maybe even dream about, they do little to put money in the bank for GM. It may not be glamorous but, GM needs "volume" product, not "niche" product.
        • 5 Years Ago
        Sky and Solstice were not the enthusiast cars which everyone wanted, they were cars which few of the enthusiasts wanted. They weren't bad, but not without their compromises. But yes ultimately they have to realize that they cannot use one car to chase volume with, they have to rely on a wide-ranging portfolio to re-capture market, biggest thing of course is profit per unit. US market is hugely fragmented, people want individuality. Utilize same platforms, suspension bits, electronics, A/C units, basically as many parts as possible across the range, while putting on a different skin. That's what VW does in other parts of globe and it has been doing wonders for them.

        It is also tremendously important to negotiate with unions where they'll be able to make a 1) superb small cars under $19k and turn a profit on them 2) be able to bring their products in large numbers made elsewhere, for sale on US soil.

        DON'T CHASE VOLUME!

        As for Sir Goofball Cramer. No credit must be given to him there were plenty of people who were predicting this recession for quite a long time.

        David Tice
        Marc Faber
        Jim Rogers
        Peter Schiff
        Nassim Taleb
        Nouriel Roubini

        And those are just the ones who made TV appearances, I was privately hearing same things even in my own industry back in 2005.
      • 5 Years Ago
      What has EW accomplished when at AT&T?
        • 5 Years Ago
        Secure a functional and legal monopoly in large parts of the US?
        • 5 Years Ago
        Sollard: LOL

        Just what the owners i.e. stockholders needed him to do. Over saw the merger of Southwestern Bell and Bell South into SBC Communications. The development and growth of SBC's wireless division, Cingular, into a major player in that market. Oversaw the acquisition of AT&T Wireless and the integration with Cingular, then the acquisition of the rest of AT&T (80% confident of that fact), then he retired.
      • 5 Years Ago
      Lieberman, I wish there was some way I could filter your posts out of this blog because they literally ruin it for me day in and day out. Ed Whitacre is a stooge installed to shape GM into a company with anticompetitive advantages that will align with and advance the political agenda of the current administration, and if you think that agenda includes the CTS-V, you're sorely mistaken.

      Let's not forget that Mr. Whitacre's last business triumph was turning AT&T into what has to be the worst, most customer-unfriendly, manipulative and deceitful wireless and infotainment provider in the country. Ask anyone who has migrated to AT&T from Sprint, Verizon, T-Mobile or any of the others. That company is a train-wreck that is headed for extinction when their exclusivity contract with Apple runs out. Under Ed's watch they capitulated to such crippling concessions to get the iPhone that they haven't had a dime to spend on their miserablely inadequate network, and that check is coming due very soon.
        • 5 Years Ago
        Let's not pretend that all telecommunications giants aren't all difficult to deal with. However, keep in mind that Whitacre turned a regional telecommunications co. into more or less the number 1 or 2 player in the country and one of the largest in the world. He also managed to resuscitate a dying at&t in New Jersey, who were more or less resigned to business products and Bell Labs. Also, all the fabulous providers you listed don't actually own the telecommunications infrastructure. They just rent it from at&t and Verizon, for less than it actually costs to maintain it.

        Ed may or may not be the right guy for GM, but the guy is damn good head honcho. He's also not your typical business guy. He's a former Texas, Southwestern Bell engineer that rose to the top. Explains why he shoots from the hip.
        • 5 Years Ago
        There was a post here, few days ago bashing i think Moody's for questioning the auto sectors future.
        • 5 Years Ago
        T-Mobile is currently offering half off on all their plans, Sprint is losing customers like crazy, and Verizon is growing, but their margins have been cut to nothing.

        Sounds like EW made some decent choices at AT&T if you asked me.
      • 5 Years Ago
      Peter Schiff was and still is one of the handful of people that have been 100% correct about financial doings for the past 5 years and got laughed off of every single talk show he was on, including this dickheads. You may not like the guys that are in his corner and take Peters' advice, but he's been right the whole time and that's why I voted for the guy I did instead of the other two.

      Not really on topic I don't guess but that's my take.
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