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Mad Mail: What About Joe Consumer?

Hey Skeedaddy: It seems to me and a lot of other people that all of your former colleagues are like a bunch of crying babies that whine and cry when they don't get what they want. At the end of the day, they leave a big mess and we all have to clean up! The SEC, over the years, has developed "rules of engagement" to protect and benefit everyone in the market…It bothers me that any administration can come in and circumvent those tried and trusted rules whenever they please. Is there anything we can do to the SEC to make sure that the rules are permanent and not subject to change? Please keep the faith and be well, and let the booyah be with you. --Big Mike

Cramer says: “…A new administration will bring in different rules…the bank bailout is not something I wanted. It’s something that we had to have in order to avoid a Great Depression. To me, the best thing…was to be able to figure out a way to cut rates and put the money in the hands or change the mortgages, the interest of all these people in the homes. It’s all a home issue. It’s not a bank issue. But it’s gotten too late. And as far as the SEC, they dropped the ball…I wish they hadn’t.”

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Jim: I'm convinced you speak the truth even when no one wants to hear it. That kind of honesty in analysis is sorely lacking for the small investor and I thank you for it! We hear time and time again that the American consumer is the primary driver of our economy. Yet, no one is really looking at, "Joe Consumer's" ability to spend us out of this recession. For the better part of a decade, Joe has been fueling our economy on credit cards and home equity in spite of a decrease in his income in real terms…My concern is that are we in for a protracted economic downturn and by protracted I mean years, not months. Am I right or wrong here? --Shannon

Cramer says: “Shannon, I’m afraid I think you might be right.” That’s why he’s been telling investors who need money over the next five years to raise it as soon as possible. Cramer hopes this downturn is shallow, but he doesn’t think it will be. He’s also concerned about unemployment and the stretched consumer, and that’s why the focus on Mad Money has been about dividends and stocks that do well in a recession.

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Last night, you recommended LINN Energy, on the show. When I took a closer look, the first thing I notice is that LINE is losing money. LINE shows an EPS of -$12.54. Why should I not be worried about that? Is it a one time accounting thing? --Charley

Cramer says: “…I need you to go and read the statement last night that they issued after the close of the market, which talks exactly about how their liquid position, how it’s no problem to be able to pay that dividend. I think you’ll feel better. It’s what I looked at when I knew that we were in good shape.”





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