Cramer: Small Rate Cut 'Delayed the Recovery'
âIâm no longer fiery,â Cramer said. âThey had their chance,â he said four months later.
On the December 11 âStreet Signs,â Cramerâs 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.
âI am very sad,â Cramer said to CNBC âStreet Signsâ host Erin Burnett. âWell, there are days you can do that stuff [referring to his August 3 meltdown]. That was when it still mattered. Now thereâs going to be giant bailouts â not all talk about the kind of thing they negotiated. It just made [Treasury Secretary Henry] Paulsonâs job much harder, President Bushâs 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 everybodyâs in more trouble.â
Cramer, who has openly had a fascination with Burnettâs attire throughout the history of his âStop Tradingâ segment of Burnettâs show, was full of criticism for the Federal Reserve Board.
âAs I said, as I said the last time you wore that, these guys are academics. Theyâre very far removed,â Cramer said. âNo need to pound the table. They obviously donât get it. They want to take whatever pain we have to. Theyâre disguising their move. They think theyâre being prudent.â
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.
âYou now, you just delayed the recovery,â Cramer said. âYou delayed the recovery. Put it further out. More likely banks will fail than not. More likely the companies trying to raise money wonât make it. Itâs just more likely.â
But, to lighten the mood, Burnett gave Cramer a giraffe tie that matched her dress, but he didnât play along.
âHoly cow, a giraffe tie â all the better hang myself with when the economy goes into recession,â Cramer said. âIt certainly ainât going to be my fault. I did my darn best.â