“This is the real deal,” Cramer said, enthused about the move.
Cramer also pointed to the Fed’s Term Asset-Backed Securities Loan Facility program as another signal of the central bank’s commitment to solving the U.S. economic and financial crises. While hedge funds would need to be cautious of how refinancing could affect collaterized debt obligations, he still urged money managers to borrow against the TALF and buy asset-backed paper at discount prices. With the market on the verge of a turn, he expected that paper increased in value.
“Right now I have never seen a moment where the Federal Reserve is saying, ‘Here’s cheap money…Get back involved,” Cramer said.
The Fed’s apparent all-in attitude means the market can go higher, and Cramer thinks it will.
“We’re at a seminal moment in terms of the bear morphing to a bull,” he said. “This Federal Reserve will not be denied. In Ben Bernanke I trust.”
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