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Fed agenda hidden in plain sight?

Thursday, 21 Nov 2013 | 6:00 PM ET
Tremendous failure of imagination: Cramer
Thursday, 21 Nov 2013 | 6:00 PM ET
Mad Money host Jim Cramer talks about the market surpassing 16,000 the day after the Fed minutes. Why does the market react so badly the day the minutes are announced and rebound the day after? Cramer also offers his bi-partisan take on how to create jobs.

(Click for video linked to a searchable transcript of this Mad Money segment)

From the price action in the market, it appears pros are worries that the Fed is hiding something.

"Each month, pretty much like clockwork, the stock market trades down when the Fed releases its minutes," Cramer explained.

"Suddenly everyone panics," explained the Mad Money host. It's as if the market fears a hidden agenda in which the Fed abruptly ends its bond buying program and rates spike.

Ben Bernanke
Getty Images
Ben Bernanke

"Yet, the Fed has said over and over again its accommodative work won't be done until there's a much lower unemployment rate than we have now," Cramer added. "I simply do not know how they could be more clear."

If the Fed is hiding anything, Cramer certainly doesn't think it's that they intend to raise rates suddenly. Cramer just can't imagine that.

If the Fed is hiding anything, he thinks it's toward the other side of the equation – that is, the central bank is desperately trying to keep the nation out of recession.

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"If anything, I think the Fed knows the nation's economic woes are just too big for the Fed alone," Cramer said. It wouldn't surprise Cramer to learn the Fed is keeping the economy above water until either the corporate sector or the government joins the fight.

And Cramer doesn't think it wouldn't take much.

All the government would have to do is get behind a theme such as nat gas as a clean energy alternative. Cramer believes that kind of initiative would quickly ignite prosperity and create jobs, something desperately needed if the economy is to percolate again.

"I think the Fed's just waiting for the rest of government to come to its senses to do something about it," said Cramer.

"If the Fed is hiding anything, it's that. And it's hidden in plain sight, just like evidence in Edgar Allen Poe's classic story, "The Purloined Letter," Cramer said.

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