Jim Cramer Blog

Trish Regan started the show by stating that Dow and S&P at biggest single day gain since September 18th. Nasdaq coming off best one day percentage gain since October 2006. Steve Liesman of CNBC economics says inflation can affect stocks in a positive way, but it does not necessarily mean that companies sold more. He says that inflation is very tame compared to what some expected it to be. Next, General Motors targets fuel efficiency in a hybrid truck. Two electric motors make a V8 truck get 20 miles or more to the gallon. Lutz; Vic Chairman of GM says that capabilities of a normal vehicle will not be lost. Environmental Issues and a higher focus on stricter fuel-effiency standards have driven this change to happen for General Motors. Lutz says that a gradual raise in fuel prices, say 25-30 per gallon per year, will make the transition for consumers much easier. Next, Bear Sterns (BSC) eases credit fears. They are up for a $3.2 m write-off, and will take over 3 years to earn back. Warren Buffet of Berkshire Hathaway says to do not kill estate tax. William Beach of the Heritage Foundation says rich people will always find a way to deal with taxes and they always have. But estate tax is counterproductive to invest and save, which is very much tied to the modern American Dream. It is said that estate taxes affect a very small percentage of Americans. Michael Farr of CNBC says if the estate tax is brought back after 2011, the limits should be raised or changed all together. You can get the full story at buffetwatch.cnbc.com. The NYSE is apparently holding an unscheduled meeting right now, and speculators are wondering why. James Cordier of Energy Analytics says $100 oil is a dead chance for 2007. He says the demand is simply not there for oil to reach $100/per barrel. Jane Wells of CNBC says that the Writers Guild of America on strike will affect much of the Hollywood production as well as the economic viewpoint for writers in America. Economic slow-down and sector rotation headlines the next report presented by Michael Farr. He says with a weak backdrop in almost every department of the the U.S, he is rallying for a much higher year to come in 2008.

Labels: CNBC, CNBC's The Call, General Motors, GM, The Call, trish regan