GM Bailout Only Way to Stave Off Great Depression II, Says Cramer
“Well you know we would have closed GM and have 10 percent unemployment – then really have some fun,” Cramer said. “We’ve got to keep people in their homes. We go keep people hav[ing] jobs. Look, we’re going to have another meltdown if we don’t do both of these.”
“I don’t care – for the same reason that AIG was in the business of a criminal conspiracy – big deal,” Cramer said. “It’s like look – we got to bail them out. We have to. We have to keep the Great Depression off the table.”
The “Mad Money” host said he didn’t care how much government intervention it took – that the
Burnett questioned Cramer’s unwillingness to consider other propositions, such as letting GM – a company operating with an unsuccessful business model – to fail. She proposed what some on Capitol Hill are considering – a massive stimulus program that would be used to improve infrastructure, including roads and bridges. Cramer insisted that wouldn’t work because people wouldn’t have to adapt.
“Because we never do that,” Cramer said. “We don’t know jack about how to make people who make cars to make roads. We always have these things. Let’s 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
“It 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. “The way to solve that problem is not to lend more money. They should do prepackaged bankruptcy.”