The markets are in “pure chaos,” Cramer said Monday, because of a lack of leadership from the Treasury department.
Cramer criticized Timothy Geithner’s unwillingness to address the public with a clearly defined idea of how to save the financial markets. What will happen to the banks? Will preferred shares be saved? What about bonds? Instead of answering these questions, Geithner’s reserved his statements for just a few select reporters.
“His recklessness is shocking,” Cramer said, and Geithner’s failure to act “will continue to be reflected in the averages.”
Cramer responded to news that AIG is seeking government funds to stay afloat by saying that taxpayers will be paying for the company’s failures “for many, many years.”
“That’s probably the biggest black hole in the financial system,” Cramer said of AIG.
China, though, is a different story. Cramer applauded the country’s stimulus package, saying it “will supercharge their economy.”
“I truly believe that China can be an engine,” he said, though U.S. transports indicate we’re not being pulled along as part of that engine.
Cramer likes China Mobile and PetroChina as plays on China.
“They’re taking this whole problem worldwide very seriously,” Cramer said of China, “and they have the capital to do something about it.”
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