Cramers Mad Money Stocks 12/02/08

Cramer Highlights

  • Cramer said “We need to stop the fear-inducing rhetoric.”
  • He said that while there are indeed things to fear in the market.
  • However Franklin Delano Roosevelt’s famous line “the only thing we have to fear is fear itself” may ring true.
  • Possibility of another Great Depression is off the table now that the federal government is actively involved with the markets.
  • But, panic can destroy otherwise healthy businesses, and that’s what worries him the most.
  • There are still three major worries in the markets.
  • The European banks not cutting rates aggressively enough.
  • The big, bad unemployment number due out later this week.
  • The possibility of the Chinese economy never recovering.
  • Cramer argued comparing today’s economy to that of the Great Depresssion in the 1930s just doesn’t make sense.
  • Even if unemployment skyrockets to 8%, that would still be only a third of what it was in 1933.
  • A huge jobless number would certainly spark another round of foreclosures.
  • There are still many positives in the markets.
  • The government’s “whatever-it-takes” attitude with laying the seeds of stability in the markets.
  • The bailout of Citigroup (C), the buying of mortgage backed bonds and individual mortgages.
  • Offering to back trillions in loan guarantees, the government is doing everything it can to save us.
  • Cramer is not telling one to go out and buy stocks without discretion but is saying “enough with the hysteria.”
  • Cramer offered himself as chairman of the Securities and Exchange Commission.
  • He officially threw his hat into the ring for the position.
  • Cramer told viewers that he’s the right man for the job and one that would provide investors with a level playing field in the market.
  • Cramer said it takes a fox to guard the henhouse, and as a Harvard graduate, lawyer, stock trader and hedge fund manager, he has the skills to stop the insanity in the market.
  • He vowed to undo current chairman Chris Cox’s legacy of empowering the short sellers at the peril of the average investor if appointed to the position.
  • Cramer said there are four things he’d do on his first day as chairman.
  • First, he would stop the relentless bear raids on stocks.
  • “It’s time to issue subpoenas,” he said, citing a recent Wall Street Journal article outlining raids on Morgan Stanley (MS).
  • Second, Cramer said he’d reinstate the uptick rule, which Cox repealed.
  • The rule was designed to prevent the endless short selling of individual stocks.
  • The absence of the rule, said Cramer, only instills fear and panic in the market.
  • Third on Cramer’s to-do list is to stop the highly-leveraged ETFs that get around traditional margin rules.
  • These funds, he said, act like lighter fluid, setting fire to stocks that are already getting pounded.
  • “The markets are not too big to be manipulated,” he said.
  • Finally, Cramer said there must be oversight at the SEC.
  • Cramer called for “real numbers” for the financial stocks and transparency into what assets they really hold and what obligations they have.

Here’s the list of stocks from Cramer’s Mad Money Show for Tuesday, December 02, 2008.

Note: Dow stocks mentioned tonight: Thumbs up for DD and VZ!

Thumbs up for these stocks………….
DD - DuPont $23.60
GOOG - Google $275.11
MTL - Mechel $4.74 (up 11.53% today)
VZ - Verizon Communications $32.13

Thumbs down for these stocks………..
CX - Cemex $6.56
EXP - Eagle Materials $19.29
NCTY - The9 Limited $11.70
TRN - Trinity Industries $13.48

*A CHARITABLE TRUST STOCK.

Leave a Comment

You must be logged in to post a comment.