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Cramer: 30-Year, 5% Treasurys?

Cramer has a solution for average Americans looking to recoup investments losses after a tough two years in the market: Rebuild America Retirement Bonds.

Now, just to be clear, these don’t exist – yet. Cramer introduced the idea during Monday’s Mad Money as a way to offer people a healthy balance between risk and safety, growth and income. Investing options seem limited these days, and he doesn’t want people falling prey to the countless scams that promise 300% returns. So he called for the Treasury Department to issue 30-year, 5% bonds as a way to help families who are desperate to recover their savings.

CD rates are just too low right now, and stocks have been too volatile to trust. As a result, typically cautious investors have few places to put their money. Enter the Cramer bond, designed specifically for 401(k)s, IRAs and 529 college savings plans. These bonds would be commission free and offer an automatic reinvestment option to allow for 5% compounded interest. The tax would be deferred until retirement, as it always is with 401(k)s and IRAs, and only then at the income tax rate. By Cramer’s calculations, investors would double their money in 14.5 years.

There’s a plus for the government here, too. The money raised from selling these bonds could go toward the issue most crucial to an economic recovery: not health care or climate change, but job creation. Until those unemployment numbers come down, Cramer said, “nothing really matters.”

So call your congressman, call your senator and let the White House know you want these bonds to be issued.

“This can be done,” Cramer said, “and it’s what every investor is really wishing for.”

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com