Cramer was overjoyed by the Federal Reserve’s decision Tuesday to cut the Fed Funds Rate by 50 basis points to 4.75%. The move sent all indices higher, the Dow by about 200 points.
“This is what we wanted,” Cramer said on Stop Trading!, adding that the rate cut will help the credit market, consumers and the economy in general.
“This is the single worst thing that could have happened to the bears,” he said.
The Fed’s announcement puts bank stocks in play, Cramer said, especially Wachovia, which he has been recommending on potential for a rate cut.
Retail stocks also got the nod, but the homebuilding sector is in need of consolidation. “Toll has to step and buy Hovnanian,” he said. HOV isn’t going out of business, so it’s going to have to be bought.
So what does Cramer think of Bernanke and gang now six weeks after his infamous rant?
“A month ago they had no idea,” he said, “now they are good.”
Questions for Cramer?
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