RECENT POSTS
- Why Cramer Likes Select Comfort Over Tempur-pedic Stock
- Lightning Round: Trina Solar, Zoltek, Affymax and More
- To Play Senate Cybersecurity Bill, Cramer Likes Fortinet Stock
- Cramer: 10 Earnings to Watch Next Week
- 2012: The Year of the Stock Picker
- Lightning Round: Yahoo!, CEC Entertainment, Standard Pacific and More
- Cramer: Berkshire Hathaway Is a 'Screaming Buy'
- Kimco Realty CEO on Solid Earnings
- Cramer: Analysts Today Are So Negative
- Perrigo CEO on Earnings Beat
Stop Trading!: Cramer's Stimulus Package
Text Size 
Web Editor, Mad Money
 |
Bush's plan calls for tax rebates for individuals and couples -- possibly $800 and $1,600, respectively -- and tax incentives for businesses, both of which could total $145 billion. While Americans might enjoy a little extra money, access to petty cash isn't the problem as far as Cramer's concerned.
"It's really just a good boost for Apple [AAPL
Loading...
()
]. People will buy iPods," he said. "Or maybe it's a bailout for Men's Warehouse."
According to Cramer, it's the collapse of the mortgage and mortgage-backed securities insurers -- like MBIA [MBI
Loading...
()
], Ambac Financial [ABK
Loading...
()
], PMI Group [PMI
Loading...
()
], MGIC [MTG
Loading...
()
] -- that's hurting the financials so much and causing the paralysis in the market. "I think these are the companies that are the lynchpin of what's wrong," he said.
Cramer offered a plan that called for a government handling of the pre-packaged bankruptcy of these companies and a guarantee of 50 cents on the dollar for all $500 billion in insured loans. Even if every loan defaults -- "which is way, way too negative," Cramer said -- it will take just $250 billion to get the economy moving again.
This and a 100 basis-point rate cut could rally the stock market 2,000 points immediately, he said. Wachovia [WB
Loading...
()
] and Bank of America [BAC
Loading...
()
] would go up 15% -- Citigroup [C
Loading...
()
] would double.
"So my plan's offereing 2,000 on the downside if you don't take it, and 2,000 on the upside if you do," Cramer said. "It's certainly a lot better than trying to write a check to Men's Warehouse."
Jim's charitable trust owns Citigroup.
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website?
Data is a real-time snapshot *Data is delayed at least 15 minutes
