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The market is so “riddled” with General Motors paper, Cramer said, that the company’s bankruptcy would cause “a major meltdown in the U.S. and worldwide trust system.”
“It cannot fail,” he said. “The market would stop.”
Beyond the loss in car production here in the U.S. and, obviously, jobs, billions upon billions of dollars would be lost as well. GM’s [GM
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] so important that its failure would be comparable to the Treasury, Cramer said. He thinks the number-one priority for Washington should be saving the company.
“It needs to be recapitalized today,” he said.
Watch the video for Cramer’s calls on Verizon [VZ
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] and Fluor [FLR
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]. And don’t miss Verizon CEO Ivan Seidenberg Friday night on Mad Money.
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