Cramer Flip-Flops on Obama's Anti-Wall Street Rhetoric
Could this be another case of a chastened CNBC succumbing to criticism from the left to improve its image?
Just a day after CNBC named former Democratic National Committee chairman Howard Dean a CNBC contributor, an uncharacteristically soft-spoken CNBC âMad Moneyâ host Jim Cramer, appeared on NBCâs March 24 âTodayâ along with CNBC âSquawk on the Streetâ co-host and âStreet Signsâ host Erin Burnett. In a tone similar to the apologetic one he had earlier this month on Comedy Centralâs âThe Daily Show,â he complimented President Barack Obamaâs rhetoric toward high executive compensation.
âWe have to put the shareholders somewhere in the equation,â Cramer said. âWhen these CEOs make so much money, it hurts the shareholders. We have to be pro-shareholder. The president has become pro-shareholder.â
This was quite a change from Cramerâs prior stance on Obamaâs anti-capitalist rhetoric.
For example, Obama criticized Wall Streetâs moneymaking, including compensation, on Jan. 30, saying there would be a time âfor them to make profits, and there will be time for them to get bonuses. Nowâs not that time. And thatâs a message that I intend to send directly to them.â Cramer responded by comparing the president to the first head of the
âLet me tell you something, we heard Lenin,â Cramer said on MSNBCâs Feb. 2 âMorning Joe.â âThere was a little snippet last week that was, âNow is not the time for profits.â Look - in Leninâs book, âWhat Is to Be Done?â is simple text of what I always thought was for the communists, it was remarkable to hear very similar language from âWhat Is to Be Done?â which is we have no place for profits.â
Cramer wasnât the only one falling into line with the administration. Burnett also talked about the need for so-called executive compensation reform.
âWe havenât moved past it,â Burnett said to host Lester Holt. âIt is important. There was a shift now that maybe weâll take a deep breath and maybe try to find a way to reform it because there are needed reforms. Executive compensation in this country is much higher relative to average workers than it is in any other country. But, it is still a big question and they probably do need to stand up and say, âGive us some rules on how itâs going to work to increase the confidence in the system.ââ
âItâs out of control!â Cramer added.
Traditionally, executive compensation and salaries of every executive employee are decided by the company owners, or the shareholders, through the board of directors and the management team.