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[ZoZoStockWatch]

Cramer vs. furor

By KAJA WHITEHOUSE

Last Updated: 4:26 AM, November 26, 2009

Posted: 11:55 PM, November 25, 2009

CNBC stock jockey Jim Cramer unleashed a tidal wave of fury this week from fans and fellow traders when he advocated for a tax on trades to buoy the economy.

"Look, I take an unpopular stance, but you know I think the deficit's bad and someone has to do something," the 54-year-old former hedge fund manager told CNBC host Erin Burnett on Tuesday. "If it comes down on us we probably. . . deserve it."

Cramer was referring to a bill Democrats are trying to push through the House of Representatives to slap a 0.25 percent tax on sales of stocks, options and other securities.

Titled, "Let Wall Street Pay for the Restoration of Main Street Act of 2009," the bill could affect Wall Street banks and money managers. It's being promoted as a way to generate money to fund new jobs and pay down the deficit. The tax could raise between $50 billion and $150 billion.

The cable TV star's support for the so-called "trader tax" outraged Wall Street and Cramer followers, who argued that they weren't responsible for the financial meltdown.

"I don't see why if banks made bad loans and created all these problems why I have to pay for this rescue," one trader told The Post.

http://www.nypost.com/p/news/business/cramer_vs_furor_iNCDIFzRaCH8J9TsfEFYDP

"I don't know exactly who 'we' might be but individual traders who make a living in the market sure did nothing to deserve it," wrote one Florida-based investment manager and contributor to Cramer's Web site, The-Street.com.

An e-mail was also circulated to subscribers of The- Street.com, urging them write to CEO Daryl Otte in protest.

"Cramer made and has his $50-$100 million, clearly he won't be affected by this passage," the e-mail said. "How can this scum come on TV and recommend several different stocks a night and want his viewers to buy them all and pay this tax??????"

On CNBC this week, Cramer started out saying the tax "sends the wrong signal," but quickly changed his tune, arguing that a 0.25 percent tax on trades is too small to be harmful, especially when compared to the potential benefits.

"If this can help create some jobs, then I am in favor of it, and if people are against that or against me for saying that I am pro-jobs, they got a real problem because they are just dead wrong and selfish," he said.

Cramer responded to some of the angry comments on his Web site yesterday, and expressed some fear as well as disappointment that his fellow traders were turning against him.

"If this is going to be another round of death threats against me and my family, and I have to call the FBI again because of things that were promised to happen to my family, well, let's just say I am ready," he wrote. "I just didn't expect them to be inspired by our own people."

Cramer did not respond to requests for comment. Otte referred The Post to a response Cramer had posted online.

The trade tax was proposed by Reps. Peter DeFazio (D-Ore.) and Ed Perlmutter (D-Colo.), and would exempt the first $100,000 worth of trades each year. It's not expected to make it through the Senate.

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