At a breakfast event to conclude New York's Internet Week this morning, TheStreet.com's Jim Cramer said Valley innovation is all about creating "fancy ways to deliver music and videogames." The obstreperrific stockpicker said videogame makers Take-Two and Activision are tech's two most successful companies, other than Apple and Google — and that's fine, but it's also a sign Silicon Valley won't save us from the economic woes the markets gave a hint of last week. Instead, he predicts the Rust Belt — "Cleveland Valley," Cramer calls it — will. (Cramer joins Miss South Carolina in illustrating the need for better geography education in our schools.) The region, better known as the Cuyahoga River Valley, has had to reposition itself as the home of what Cramer calls "New Tech," building such marvels as "windmills with blades the size of 747 wings." Other highlights from Cramer's characteristically energy-charged talk and photos, below.
Cramer on the economy:
There are two kinds of companies right now. Those that need oil and capital and those that don't. I'm bullish on those that don't and those that produce raw materials.
My kids don't know what Newsweek is. Newsweek should be Kaplan [the educational-testing business, owned, like Newsweek, by the Washington Post Company)].
Rupert Murdoch is going to be Sam Zell and see what the Wall Street Journal can do on the Internet. With maybe half the journalists.
(Cramer's referring to Zell's ill-time purchase of newspaper publisher Tribune.)
There's a movie coming out this summer, Get Smart. In the old show, Control battled against the evil Chaos. Lately, it's felt like Chaos has been running things.
Microsoft has to buy Yahoo because Google is going to give away the OS for search queries. Icahn will force the deal. Yang and his allies only own about 9 percent of the company. The Bancroft family owned 60 percent of the Journal and that didn't stop progress.