Jim Cramer Is Getting Eaten Alive For Telling People To Buy Stock In Silicon Valley Bank, Which, Uh, Just Collapsed

During a February 8 episode of MSBNC’s Mad Money, host Jim Cramer instructed viewers to buy stock in Silicon Valley Bank. Just a month later, that advice is coming back to haunt the perpetually wrong Cramer, who John Oliver once called a “garbage can full of cocaine.” On Friday, federal regulators shut down SVB in one of the biggest financial sector collapses since 2008, which has sparked fears of a similar banking crash.

Via NBC News:

The shutdown came after a tumultuous morning for SVB, during which trading of its shares was halted after they fell by double-digits before markets opened. That downslide came on the heels of a more than 60% decline Thursday. Worries over a run at SVB led Wall Street investors to dump other bank stocks as well. Shares of other prominent West Coast lenders took sharp nosedives Friday, including First Republic Bank, PacWest Bancorp and Western Alliance Bancorporation.

In view of the tumult, Treasury Secretary Janet Yellen told House lawmakers Friday morning, “There are recent developments that concern a few banks that I’m monitoring very carefully, and when banks experience financial loss it is and should be a matter of concern.”

A potentially massive financial calamity aside, Twitter users immediately began dragging Jim Cramer for encouraging people to buy SVB stock just last month. According to the New York Post, Cramer told viewers that SVB was ““less dependent upon private equity and venture capital offerings,” which made it worth buying because “being a banker to these immense pools of capital has always been a very good business.”

You can see how well that advice turned out, and so did lots of people on Twitter who pounced on Cramer for making yet another wildly wrong prediction, as he so often does:

And if all of this is confusing to you (join the club), this thread explains what went down here.

(Via NBC News, New York Post)