Jim Cramer, This Is Your Idiot Moment – Lenny Dykstra Goes Bankrupt

Do you guys remember when Jim Cramer was praising the “legendary” Lenny Dykstra and his ability as an investor?  If not, watch this clip first:

Mr. Cramer.  You’ve done some stupid things before but calling Lenny a sophisticated investor is such a dumbass move.  Now Lenny Dykstra files for chapter 11 bankruptcy with $10 to $50 million in liability. According to the article from ESPN

The 46-year-old has no more than $50,000 of assets and between $10 million and $50 million of liabilities, according to a petition filed Tuesday with the U.S. Bankruptcy Court in the Central District of California.

Dykstra’s filing comes in the wake of more than 20 lawsuits he faces tied to his activities as a financial entrepreneur, including The Players Club, a glossy magazine for athletes he had helped launch in 2008.

According to an April article on ESPN.com, Dykstra put his net worth at $60 million, and also owned a black Rolls Royce Phantom and Gulfstream II jet.

Walter Hackett, a lawyer for Dykstra, said the event triggering the bankruptcy filing was a planned foreclosure sale of a southern California residence that Dykstra bought from hockey legend Wayne Gretzky for $17.5 million in 2007.

Dykstra is “in good spirits,” Hackett said in an interview. “He understands now that bankruptcy is truly a protective act. I do expect that Lenny is going to emerge from Chapter 11, and make those people whole who have legitimate claims.”

Walter, I know you’re getting by Lenny and all, and it’s your job to protect him.  But don’t make silly comments that will jeopardize your credibility in the future.