The Federal Reserve will cut rates when it meets next week, but not enough, Cramer said on Mad Money tonight. And that’s bad news for an economy that depends so much on credit.
Cramer said he expects a cut of 25 basis points, not the 50 he said so many Middle Americans need to save their homes and jobs. The problem as he saw it: Ben Bernanke and the rest of the academics at the Federal Reserve just don’t understand how important cheaper money is to the U.S. markets.
And the problem isn’t just with the homeowners. The Fed is “fine with the homebuilders and the mortgage issuers going under” too, Cramer said. “They’re fine with the big layoffs on Wall Street, but they can’t see how, without these people and businesses, we won’t have [any credit], and credit makes the world go ‘round.”
So forget the nerds at the Fed, Cramer said. Better to bank with some jock stocks. So in honor of football season, he pulled together a fantasy team to try to help Home Gamers make money no matter what Bernanke does. Portfolios have key positions just like sports teams do, and tonight Cramer unveiled his picks for defense and quarterback.
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