Stop Trading!: Don't Stop Now, Uncle Ben
Don’t become complacent because stocks are rallying, Cramer said on Monday’s Stop Trading! segment. There are still grave problems within the system that can only be fixed with more rate cuts from the Federal Reserve.
Cramer pointed to the housing and financial markets, saying “we’re too close to the precipice” for the Fed to stop easing in order to help those struggling sectors. The quarterly losses from the big financial centers like Bank of America and Wachovia are just too staggering to continue, he said.
In addition to the banks, the Fed needs to act to help stem the decline in house prices, Cramer said. The overall economy will be in trouble so long as home price appreciation is non-existent.
On the news that the Chicago Merc is in talks to by the Nymex , Cramer said he would be a buyer of the CME as well as Intercontinental Exchange – a stock down sharply after posting big gains since he recommended it in October.
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