Mad Mail: Cramer Talks Taxes

Jim: In Monday’s Sudden Death, a lady asked you about Banco Santander-Chile, a stock that you had recommended on May 15. I believe your response, since it was based on comments about Europe, was actually about STD , which is the Spanish bank by the same name. Can you clarify your comments (on the air), since you hit the “Bear” button and I don’t think that’s what you intended. --Bruce

Cramer says: “I didn’t look at the symbol, I heard Santander, and I thought it was the Spanish one. My bad. I regret it. I like the Chilean Santander. And I think it that yields more than 5%, and I think that Chile’s a great place to invest. So my bad, and I apologize.”


Jim: I keep hearing on various financial cable programs how Obama's redistribution of the tax burden from people making over $250,000 to those making less will be bad for the economy. Yet I've also heard that 70% of our economy is based on consumer spending. If Obama puts more money in the hands of the majority of the consumers in this country (who make less than $250,000), won't that be a big push for the economy, and in turn, for stocks? --Laurence in Iowa

Cramer says: “Everyone hold their ears here because I know this is going to sound really bad and very contrary, but if you make more than $250,000 maybe you should be paying a little more tax. I do, and I’m willing to pay. A lot of people make a lot less than I do and they should be paying less tax.”


Jim: A big ole stu-stu-stu-stu-stuttering ba-ba-ba-ba-ba-ba-oooyah to you...In light of your show forecasting the bottom of housing next year, do you think it would be a wise idea to get into some of the home builders you mentioned, such as KB Homes, Centex and Toll Brothers? Are they on the uptrend? And, if so, which specific one do you prefer? --John in Washington, D.C.

Cramer says: “I don’t want to recommend any homebuilders. I’m just saying that they’re telling you that homebuilding’s going to bottom…what I think is important to point out is that I’m not recommending the stocks. If you have to own a housing stock, you have to own the index (PHLX Housing Sector Index) because I don’t trust most of them.”

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