Cramer's Stop Trading! America's Calling (10/29/08)

Recap of Jim Cramer’s comments on Stop Trading! Wednesday October 29.

America’s Calling

Cramer praised the generous interest rate cut, but warned that the U.S. may give back its gains in the Dow if Europe and China do not follow suit and cut their interest rates in kind. American companies, such as Caterpillar (CAT), with heavy international exposure will suffer if interest rates in the rest of the world are frozen. While China has already reduced its rate from 6.93% to 6.66%, it can still make further reductions. The British, fearing inflation, have held fast to their 4% interest rate in spite of their own recession. Unless the rest of the world cuts rates, Cramer said, the rally will just go right back down. “We’ve now done everything we can on our end,” he said. “Let’s hope that Europe listens.”

 

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Comments

[woodwardchiro:]

We're a long way from a stable market. The more we've become and international market, the more the lines between national economies have blurred. I hope China & Europe do pull through (and so do my kids though they don't know about their college funds yet)!

2008 Oct 30 11:37 AM