Cramer's New 'New Deal'

The following is an unofficial and edited transcript from Thursday's "Mad Money."

Down a cool 444 points today, down more than 5%, 11 year lows in the S&P 500... it's been a terrible 2 day period. If we ever want to see a sustained rally, dramatic action is needed. We are in a precarious situation where systemic risk, not to mention "The Great Depression part II", is back on the table. This is systemic risk. Itlooks like Citigroup at $4.71, Bank of America at $11, Wells Fargo at $22, and JP Morgan at $23, not to mention Morgan Stanley at $9, Goldman Sachs at $52, and even Berkshire Hathaway at $77,500, down about 49% from its high. Systemic risk looks like a huge gain in treasuries, 9 points, a year's worth of gains in a few hours, just like in the Great Depression, where only US treasuries advanced in value and everything else went down in value, just like today. How could the treasury be so stupid as not to issue tens of billions in US third year bonds to take advantage of the run and help out homeowners?

America needs a plan to get rid of the systemic risk. In the video, Cramer offers his eight point tough-love plan to restore the American Economy.

Cramer wants to keep the rally alive, and that means adopting the eight point program to stop this moment from cascading into a 1932 situation. It will re-instill confidence so we can bring in all the money that's sitting everywhere on the sidelines into riskier assets in order to allow our economy to grow again.

Bottom line: If President-Elect Obama wants the sequel to the great depression off the table, he should appoint Cramer, or at least listen to him, and do it now. Today if possible. January is too late - he won't be able to avoid another depression if he waits until he takes office. Just announcing a serious plan now will restore confidence and help take the systemic risk out of the system.

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