Cramer can’t believe the speculation that the Treasury might invest in CIT Group, a company that’s missed its earnings for the past six quarters.
Forget about how bad this company is. The problem here is that the Treasury is basically calling the stocks it plans to save, giving investors a chance to get in on the action. So much for overconcern in Washington for moral hazard.
“At this point, the Treasury is literally giving the money away,” Cramer said.
Who’s next? Domino’s? Motorola? Sprint? These three are struggling just as much as CIT .
“This may be pro-business – it’s definitely pro-shareholder as anyone buying CIT here has been practically guaranteed a win by the Treasury Department,” Cramer said, but none dare call it capitalism.”
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