Cramer: Economy Naysayers Are 'Dead Wrong'

Cramer’s in disbelief over the, well, nihilism he’s hearing from market pundits these days. Rate cuts don’t matter. Buying mortgages won’t work. It’s too late for a stimulus package. Listening to them, you’d think the world were going to end tomorrow and there was nothing we could do about it.

But that’s not how Cramer sees it. In fact, “these people are dead wrong,” he said, adding that such talk was “economy-destroying analysis.” He believes we should be throwing everything we can at this problem: rate cuts, tax cuts, rescue plans, home loans, you name it. “We can’t print money fast enough,” he said. And Wednesday’s rally in financials is proof that this stuff works.

We’ve been here before, though. The U.S. didn’t do enough to stop the Great Depression, and we could find ourselves there again if we take the same approach. Not only does Cramer think we have to do anything we can to avoid a similar fate, but it would be “heartless and punitive not to try.”

That’s why he doesn’t understand why people seem so bent on punishing Wall Street and not saving the American homeowner. Why are they against the bailout plan? Cramer isn’t the only person in favor of it. Warren Buffett’s made too huge investments – both in Goldman Sachs and General Electric – not just because he thinks the bailout will pass, but because it must. And, while most don’t believe it, the taxpayers should win here.

“This…rescue package is the best weapon we have against staving off another depression,” Cramer said. “It’s also the one that’s profitable.”

We need to stop pointing fingers. There will be plenty of time to hold the guilty parties responsible. “But firs let’s win the war,” Cramer said. “And, yes, the war is winnable.”

Here’s the strategy for individual investors going forward: First, preserve capital. Make sure you have health insurance. (Not having it is the principal cause of bankruptcy.) But keep your eyes peeled for opportunity. There are stocks with better dividend yields than you’d get from a savings account. Look at Altria, which pays out 6%. Also, hunt for value plays that should jump in price once the market turns up. And of course, play defense with stocks like Coca-Cola and Procter & Gamble.

The bottom line? Ignore the naysayers. We can find our way out of this mess. And consider putting some cash – though not all of it – to work. As bad as things look right now, there’s a chance they’ll get better.

Jim's charitable trust owns Altria, General Electric, Goldman Sachs and Procter & Gamble.

Questions for Cramer?

Questions, comments, suggestions for the Mad Money website?