It turns out the Federal Reserve could have prevented one of the main reasons behind the horrible declines we’ve seen over the past 16 months or so, Cramer said, simply by purchasing mortgage-backed paper.
That’s what the Fed’s been doing lately, and it’s working. Mortgage rates are falling, homeowners are able to refinance, and buyers are entering the market. Why didn’t Bernanke put this plan into action a year ago?
Cramer was, needless to say, outraged by Uncle Ben’s complacency. Or is it is just plain incompetence? While it’s great that Bank of America , Wells Fargo , JPMorgan Chase now will have the chance to recover, Bernanke allowed a lot of unnecessary damage on his watch. He could have spared us a lot of pain.
Bernanke’s decision-making was so poor that Cramer’s nominating him for a new Mad Money honor: the Plaxico Burress Good Judgment Award.
“If he doesn’t win,” Cramer said, “we’ll give him another shot.”
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