Cramer Highlights

• CRAMER SAYS…TARP Conditions Will Turn Banks Into Zombies!
• Cramer said this was one awful, horrible day in the the markets.
• It’s time to say goodbye to the government of, by, and for the corporation and hello to the new regime that’s not at all friendly to the financial stocks.
• When Lawrence Summers sent his letter to Congress today, it clearly signaled that the Obama administration is pro-taxpayer and not pro-shareholder.
• Cramer said that while the revisions to the TARP plan are morally the right ones to take, they will, in turn, crush the bank stocks.
• After last year’s countless bank failures which wiped out the common stock, the markets had come to rely on the C – Citigroup model as the standard going forward.
• Only the Citigroup plan saved the common stock, and allowed investors to invest in the bank stocks without fear.
• However, with today’s actions that fear is back.
• In order for banks to take advantage of the TARP money, they must now slash compensation and freeze their dividends in order to repay the government first.
• This, in turn, turns the banks into zombies and now the common stock is a sucker bet.
• This market needs leadership and that leadership will not be coming from the financials.
• Cramer again sounded off at Treasury Secretary Hank Paulson for allowing Lehman Brothers to fail.
• Cramer cited interview after interview where Paulson said the Federal Reserve couldn’t find a buyer for the firm and that the Fed didn’t have the authority to step in.
• Yet after the Fed allowed Lehman to fail on Sept 15. of last year, it stepped in two days later to bail out the worst of the worst, AIG – AIG.
• This was a far worst deal for the American people and led the markets down a horrible path.
• Cramer said Paulson needs to come clean with the American people and admit “we blew it.”
• All of the market’s failures started with Lehman, and due to Paulson’s lack of creativity, he personally led the markets to collapse.
• Cramer said Paulson may have fooled Congress, but “he hasn’t fooled me.”

Here’s the list of stocks from Cramer’s Mad Money Show for Monday, January 12, 2009.

Note: Dow stocks mentioned tonight: Thumbs up for JPM!

Thumbs up for these stocks………….
BP* – BP $45.70
CRM – SalesForce.com $30.85
ED – Consolidated Edison $40.29
JPM* – JP Morgan Chase $24.91
PM – Philip Morris International $41.83
WFC – Wells Fargo $23.80

Thumbs down for these stocks………..
ACAS – American Capital Strategies $5.13
BBY – Best Buy $27.56
NAL – Newalliance Bancshares $12.07
OGE – OGE Energy $24.76
RSH – Radioshack $11.88
SD – Sandridge Energy $7.01

*A CHARITABLE TRUST STOCK.