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