That’s it. We’ve done everything we can do, Cramer said during Friday’s Mad Money. The fate of the U.S. markets is out of our hands.
The Federal Reserve cut interest rates to 1%. Washington bailed out the banks. Cramer thinks the insurers – especially the annuity issuers – will be next. General Motors, too, might be in line for aid. All of this, and the horrible action we’ve seen in credit, housing and stocks, has been priced into the markets. The government may not have acted as quickly as Cramer wanted, but the administration has done everything it can save us.
Now it’s up to Europe. And China.
Britain and the European Union have a case of whatever Ben Bernanke had last year when he was obsessed with inflation (in a deflationary environment) and cut rates sparingly. The Continent is having the exact same problems we had, with financials struggling and real estate prices, both commercial and residential, dropping. But still the central bank’s rallying cry is “inflation!” They couldn’t be more wrong, Cramer said, and that’s why they’re all getting the same spite and vitriol he once held for Uncle Ben.
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China’s rates also are too high. They’re still up at 6.66% even after a recent cut.