- Jim Cramer said things are finally getting better.
- Cramer credited President-elect Barack Obama for finally taking some of the uncertainty out of the markets.
- The appointments of Tim Geitner as Treasury secretary and Lawrence Summers as head of the White House Economic Council, bring hope where no hope existed before.
- “Wall Street likes these guys,” he said, “and that means something.”
- Cramer also credits our government’s bailout of Citigroup (C) as the second catalyst for the markets to rally.
- Cramer called the plan enough to make him recommend the troubled bank a buy.
- He called the bailout “a template that works” and one that can be used in other bailouts.
- Unlike the bailout of AIG (AIG), which offered little transparency or the decision to let Lehman Brothers fail.
- Cramer said the Citigroup plan keeps the common stock alive, does not punish the preferred shares and does not dump the troubled assets back into a troubled market.
- Cramer said “today we learned everything will be OK.”
- Cramer also credits Obama himself for part of today’s rally,
- He commends the president-elect for his quick and pragmatic approach toward fixing the nation’s problems.
- Every day of delay costs the economy more jobs and more foreclosures.
- This is why Obama’s job stimulus program focusing on rebuilding the country’s infrastructure is being so well received.
- Cramer’s bottom line called for a little hope and a little bit of optimism as the markets digest these events.
- Cramer called the homebuilders plea to Congress for a $250 billion bailout outrageous!
- Cramer said “These are guys who caused the problem.”
- He said the last thing the country needs is more homes.
- Congress should pay the homebuilders not to build homes.
- Congress simply cannot get behind any plan that would cause existing homeowners any additional pain and suffering.
- Cramer said the home building industry needs to either merge or die.
- Homebuilders cannot be given a government handout that will undermine the economy even further.
- Cramer interviewed Eric Schmidt, chairman and CEO of Google (GOOG), to delve deeper into Obama’s plans to turn around the U.S. economy.
- Schmidt called Obama’s economic team a group of really smart people working feverishly to develop a plan that can be implemented on Jan. 20.
- Schmidt says the Obama team is bringing fresh ideas and new energy to the problem.
- He also said Obama is focused on Main Street and bringing prosperity to the middle class.
- Schmidt is confident there will be a stimulus plan in January that includes a sizable amount to rebuild the country’s infrastructure (roads, bridges, schools and energy infrastructure).
- Regarding the Citigroup bailout, Schmidt said it appears the government finally found the right way to structure this type of deal.
- He said the recent hearings with the automakers also shows that the government is no longer handing out money without a solid plan for recovery.
- When asked how the economy’s troubles would affect the Internet and Google in particular, Schmidt said that he doesn’t really know how the recession will affect his company’s earnings.
- Schmidt does expect the Internet overall, to continue to grow and continue to do “very, very well.”
Here’s the list of stocks from Cramer’s Mad Money Show for Monday, November 24, 2008.
Note: Dow stocks mentioned tonight: Thumbs up for HPQ!
Thumbs up for these stocks………….
BGC – General Cable $10.47 (up 37.40% today)
HON – Honeywell International $26.19
HPQ* – Hewlett Packard $35.70
NUE – Nucor $31.08 (up 9.90% today)
RPM – RPM International $11.46
X – United States Steel $27.85 (up 11.80% today)
*A CHARITABLE TRUST STOCK.