Enter multiple symbols separated by commas

Stop Trading!: Market Needs Surprise Rate Cut

The stock market is begging for a surprise Fed rate cut, Cramer said on Friday’s Stop Trading!.

The problem is simple, as far as the Mad Money host is concerned: “Our banks have no money.” It isn’t that they don’t want to lend – it’s that they can’t.

Instead of those $600 rebate checks, he thinks the government should use the money from its economic stimulus plan to buy back residential mortgages. Cramer thinks Thornburg Mortgage CEO Larry Goldstone had it right when he suggested the government use the stimulus money to alleviate some of the pain in the credit markets to buy AAA-rated mortgage paper.

Cramer also took a moment to recommend the steel stocks as one of the few sectors able to surge because of overseas demand: U.S. Steel , Nucor and Brazil-based Petrobras are all “so right” for this environment, he said.

Questions for Cramer? madmoney@cnbc.com

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

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
    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

    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

Mad Money Moments

Cramer's New Book