Greetings Professor Cramer: During your famous rant a year or so ago, you implored the Fed to open their window. They did not, and that in part led to the failure of Bear Stearns. After Bear's collapse, the Fed did open the window to the brokers and dealers. If opening the window was such a panacea then why did access to the "darn Fed window" as you ranted, not save Lehman? Did Lehman just not take advantage of the opportunity that the Fed provided them? Please enlighten us professor! --Blaine in Georgia
Cramer says: “I believe they didn’t. I think that they really felt they were in much better shape. A lot of stories are going to come out about how they were holding out for a higher price, they didn’t want to panic anybody. They were totally delusional…quite embarrassing. And they should have used the window.”
Jim: I am outraged that John Thain and Thomas Montag from Merrill may receive exorbitant payouts totaling over $47 million if they are forced to leave or given lesser roles at Bank of America. This impacts my shares in BAC, and they should not be allowed to run a company into the ground and then get compensation for it. How can we fight back? I am only a small shareholder, but hearing this just boils my blood. Can you please address this on your show? A big booyah from Westport, Conn. Love the show. --Donna
Cramer says: “I’m conflicted on this myself…” Some say Thain saved Merrill from a Lehman Brothers-type failure, and that’s a good thing. “Do I find that kind of payout obscene? Yeah, I find it embarrassing…how could you pay yourself that much? But it’s a formula. Bank of America agreed to it, I guess, and it’s quite embarrassing. And I think that these rich people ought to start recognizing that America’s is getting sick of this.”
Cramer: Long-time viewer of the program, and I just wanted to know your thoughts on the homebuilder sector i.e., Toll Brothers. Are we at a point were we should be looking to purchase, or should we be holding off? --Mark from Virginia
Cramer says: Normally Cramer doesn’t recommend options on the show, but he has been positive on HGX (the housing index) calls. He thinks the index has bottomed, and good quarters from both Standard Pacific and Toll Brothers mean his prediction for a housing recovery in the third quarter of 2009 looks to still be on track.
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