It is time to get serious about the dire problems facing our financial markets, Cramer exclaimed on Friday’s Stop Trading!
For starters, he urged Treasury Secretary Hank Paulson to assure investors that the government still stands behind the Fannie Mae and Freddie Mac agency paper. Paulson’s silence on this subject, especially when the market is clearly spooked that the Fannie and Freddie bonds could default like mortgage-backed bonds, is “killing people.”
Cramer also reiterated his call that the Fed step up and buy AAA-rated mortgages, which would allow the central bank to keep from further cutting interest rates and thus killing the value of the dollar.
The bottom line is that the federal government needs to start coming up with some creative solutions to these problems, as far as the Mad Money host is concerned, because the same old strategy clearly isn’t working. Who will have the courage to step up to the plate?
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