GO
Loading...

Cramer on Fed: It's a Start

The Federal Reserve’s emergency 75-basis point cut is a “good start” to help the hemorrhaging financial markets, Cramer said. But if Bernanke initiated this cut three months ago, a global sell-off could have been averted. “What was the point of waiting?” he lamented.

The Mad Money host still lacks confidence in the central bank’s ability to come to the rescue and stop a full-blown recession. He has been calling for a full-point cut as well as a government rescue of the mortgage and bond insurers: AMBAC , MBIA , PMI Group and MGIC .

CNBC’s Rick Santelli took issue with Cramer continuing to fault Bernanke for the credit woes. It’s easy to blame the Fed, he said, but what about the financials? Why not blame the trading desks at Bank of America , Wachovia or Citigroup?

But Cramer has been bearish on the banks since the depths of the credit crisis became apparent late last summer. He also has not been shy in voicing his fear that the U.S. is in a recession and stocks are in a bear market.



“This credit market crap and all these lending standards have been going on for years,” Santelli said, adding that the market is still in a state of de-leveraging. When the smoke clears, he thinks the Fed’s rate cuts should prove to be just what was needed.

“The Fed is going to save the day when the car accident is over,” Santelli said. Not before.

Jim's charitable trust owns Citigroup.


Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

Symbol
Price
 
Change
%Change
BAC
---
C
---
MBI
---
MDTL
---
PM
---
PGI
---

Contact Mad Money

  • Showtimes

    U.S.
    Monday - Friday 6p ET
    Australia
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.