Cramer: Small Rate Cut 'Delayed the Recovery'
“I’m no longer fiery,” Cramer said. “They had their chance,” he said four months later.
On the December 11 “Street Signs,” Cramer’s mood swung 180 degrees the other way after the Fed cut the Fed funds rate a quarter-point – viewed as a disappointment by the shock stock picker.
“I am very sad,” Cramer said to CNBC “Street Signs” host Erin Burnett. “Well, there are days you can do that stuff [referring to his August 3 meltdown]. That was when it still mattered. Now there’s going to be giant bailouts – not all talk about the kind of thing they negotiated. It just made [Treasury Secretary Henry] Paulson’s job much harder, President Bush’s job much harder. It just made everybody in Congress’ 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) – everybody’s in more trouble.”
Cramer, who has openly had a fascination with Burnett’s attire throughout the history of his “Stop Trading” segment of Burnett’s show, was full of criticism for the Federal Reserve Board.
“As I said, as I said the last time you wore that, these guys are academics. They’re very far removed,” Cramer said. “No need to pound the table. They obviously don’t get it. They want to take whatever pain we have to. They’re disguising their move. They think they’re being prudent.”
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.
“You now, you just delayed the recovery,” Cramer said. “You delayed the recovery. Put it further out. More likely banks will fail than not. More likely the companies trying to raise money won’t make it. It’s just more likely.”
But, to lighten the mood, Burnett gave Cramer a giraffe tie that matched her dress, but he didn’t play along.
“Holy cow, a giraffe tie – all the better hang myself with when the economy goes into recession,” Cramer said. “It certainly ain’t going to be my fault. I did my darn best.”