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Cramer: Obama Should Pursue People's IPO for GM

As General Motors prepares to file for its initial public offering, Cramer said Thursday that President Barack Obama should ensure US taxpayers, not just the company board and automotive labor unions, benefit from the stock offering.

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"This is an out for the president to head-off a problem before it even gets to be a problem, which is that the only the richest clients are going to get this GM deal," Cramer said on Stop Trading!, adding it behooves CEO Ed Whitacre to push for a public IPO."Who would buy shares in GM and then not want to go buy a GM car?"

In an interview with CNBC's Phil LeBeau Thursday, Obama said that once the IPO goes through, US taxpayers will be repaid in-full for the bailout of the once-bankrupt automaker.

"We expect taxpayers will get back all the money my administration has invested in GM," Obama said. "Over time, that is going to be extraordinarily significant. It means we stood up this industry and you know what, we got a return."

Watch the full interview with President Obama here

In an effort to bailout both GM and Chrysler, the government gave $60 billion to the automakers last year. Obama's comments referred to that amount of money, not what the George W. Bush administration gave to troubled automakers.

Cramer praised LeBeau for conducting what he called an "excellent" interview with the president, so that Obama could address how the GM IPO might work.

"This is a major opportunity for the president," Cramer said. "I sure hope he doesn't blow it."

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