Looking for innovation? Superpundit Jim Cramer says there’s more of it happening in the Ohio Valley than in Silicon Valley. This was one of a few pearls delivered by Cramer during TheStreet.com’s (TSCM) obligatory Internet Week event. The theme: What’s actually working now in the broader economy.
What’s working, according to Cramer:
- The Rust Belt. While Silicon Valley tech firms soak up capital and task engineers to develop “fancy ways to deliver music and games,” Rust Belt survivors are buying back stock and trying to solve real global problems with advanced materials and alternative energy sources.
- Carl Icahn. Microsoft (MSFT) must buy Yahoo (YHOO) because Google is giving away the operating system in exchange for search queries and Redmond can’t compete with that. Icahn is going to make a deal happen and Jerry Yang doesn’t have the clout or leverage to stop it.
- His own Web site. During the self-serving part of the presentation, Cramer says Rupert Murdoch (NWS) is going to look a lot like Sam Zell in three years, when the Wall Street Journal is at 50% of its current headcount and journalists are churning out three stories a day. Young people will get their information on money from … TheStreet.com’s Mainstreet.com.
- The market. To the extent that financial institutions are failing, at least. Cramer thinks many more have to fail so that the capital they are consuming can be put to better use. Jim wouldn’t name names here, but said he expected several more Bears Stearns-level catastrophes.