Cramer: Small Rate Cut 'Delayed the Recovery'
â€śIâ€™m no longer fiery,â€ť Cramer said. â€śThey had their chance,â€ť he said four months later.
On the December 11 â€śStreet Signs,â€ť Cramerâ€™s mood swung 180 degrees the other way after the Fed cut the Fed funds rate a quarter-point â€“ viewed as a disappointment by the shock stock picker.
â€śI am very sad,â€ť Cramer said to CNBC â€śStreet Signsâ€ť host Erin Burnett. â€śWell, there are days you can do that stuff [referring to his August 3 meltdown]. That was when it still mattered. Now thereâ€™s going to be giant bailouts â€“ not all talk about the kind of thing they negotiated. It just made [Treasury Secretary Henry] Paulsonâ€™s job much harder, President Bushâ€™s job much harder. It just made everybody in Congressâ€™ job much harder. And everybody who works at a bank, much harder. Washington Mutual (NYSE:WM) has to refinance at a higher price. Fannie [Mae] (NYSE:FNM) and Freddie [Mac] (NYSE:FRE) â€“ everybodyâ€™s in more trouble.â€ť
Cramer, who has openly had a fascination with Burnettâ€™s attire throughout the history of his â€śStop Tradingâ€ť segment of Burnettâ€™s show, was full of criticism for the Federal Reserve Board.
â€śAs I said, as I said the last time you wore that, these guys are academics. Theyâ€™re very far removed,â€ť Cramer said. â€śNo need to pound the table. They obviously donâ€™t get it. They want to take whatever pain we have to. Theyâ€™re disguising their move. They think theyâ€™re being prudent.â€ť
Cramer also had a dismal forecast for financial companies that are battered in the wake of the credit crunch. He went as far as saying banks were more likely to fail.
â€śYou now, you just delayed the recovery,â€ť Cramer said. â€śYou delayed the recovery. Put it further out. More likely banks will fail than not. More likely the companies trying to raise money wonâ€™t make it. Itâ€™s just more likely.â€ť
But, to lighten the mood, Burnett gave Cramer a giraffe tie that matched her dress, but he didnâ€™t play along.
â€śHoly cow, a giraffe tie â€“ all the better hang myself with when the economy goes into recession,â€ť Cramer said. â€śIt certainly ainâ€™t going to be my fault. I did my darn best.â€ť