GM Bailout Only Way to Stave Off Great Depression II, Says Cramer
âWell you know we would have closed GM and have 10 percent unemployment â then really have some fun,â Cramer said. âWeâve got to keep people in their homes. We go keep people hav[ing] jobs. Look, weâre going to have another meltdown if we donât do both of these.â
âI donât care â for the same reason that AIG was in the business of a criminal conspiracy â big deal,â Cramer said. âItâs like look â we got to bail them out. We have to. We have to keep the Great Depression off the table.â
The âMad Moneyâ host said he didnât care how much government intervention it took â that the
Burnett questioned Cramerâs unwillingness to consider other propositions, such as letting GM â a company operating with an unsuccessful business model â to fail. She proposed what some on Capitol Hill are considering â a massive stimulus program that would be used to improve infrastructure, including roads and bridges. Cramer insisted that wouldnât work because people wouldnât have to adapt.
âBecause we never do that,â Cramer said. âWe donât know jack about how to make people who make cars to make roads. We always have these things. Letâs have people go drill oil off the coast in
But the idea that the government can rescue GM is greeted with skepticism by some experts. Bill Ackman, manager of the Pershing Square Capital Management LP hedge fund in
âIt has been hamstrung for years because it has too much debt and it has contracts that are uneconomic,'' Ackman said during the taping of the Charlie Rose show on Nov. 10 according to Bloomberg. âThe way to solve that problem is not to lend more money. They should do prepackaged bankruptcy.â