The European Central Bank decided it had to act over the weekend, but it could have taken bolder action by making a "drastic cut in interest rates" because it has a couple of trillion euros as a backstop, CNBC's Jim Cramer said Monday.
"I think you can just say, 'Listen, we [ECB] are going to do exactly what [Federal Reserve Chairman Ben] Bernanke did, we're going to take it to negative interest rates if you have to," he said.
Having welcomed promises from Spain and Italy to speed up reform, the ECB said it will "actively implement" its Securities Markets Program to help restore "a better transmission of our monetary policy decisions—taking account of dysfunctional market segments—and therefore to ensure price stability in the euro area."
Cramer thinks the Chinese, who issued a response to the S&P downgrade condemning the U.S. for its "debt addiction," could've said, "We're going to be a part of a worldwide coordinated effort to lower interest rates given the fact that we see oil down dramatically."
Cramer went on to say, "Look are these things, what they should do? I'm telling you what the market wanted. The Chinese are being very prudent, we're attacking the rating agency. I'm surprised that [Timothy] Geithner didn't say, 'Hey listen, they're [S&P] the guys who checked off the mortgages'" leading up to the 2008 financial crisis.