The Federal Deposit Insurance Corp. needs to increase its guarantee limit right now, Cramer said during Monday’s Stop Trading!, to stop a collapse in banking.
The Mad Money host has said before that the FDIC’s $100,000 deposit insurance might have been suitable for the Great Depression era, but not the 21st century. Cramer’s calling for that limit to be increased to $1 million. He also wants to see corporate accounts, which carry with them much more money, insured for a fee, even if it’s as small as 0.1%.
This, Cramer thinks, would “temporarily freeze” the massive withdrawals that are hurting so many U.S. banks. Goldman Sachs , JPMorgan Chase, US Bancorp and Wells Fargo were all down in Monday trading. The move could serve as a much-needed crutch until the market’s main problem – mortgages – is worked out. Apparently, that won’t be today, as Congress voted down the proposed bailout bill Monday afternoon.