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Stocks discussed on Jim Cramer’s Stop Trading! TV program, Tuesday December 16.

The Fed interest rate cut was a “monster” and pleased Cramer who is surprised the market wasn’t up higher. He is convinced the government will solve the current crisis “by any means necessary” and he interpreted Bernanke’s message as: “you ought to get on board because we are not going to let anything bad happen again.” The Fed lowered rates pledged to keep them low, and mentioned the possibility of buying up mortgage-backed securities. Cramer thinks this news will be a boon for financials, insurers and real estate, all of which can be bought now. Mortgage rates may drop to 3.5% said Cramer, and real estate-related bonds and collaterized debt obligations may actually be worth something in a year.

“This is a watershed moment for the markets,” Cramer announced.

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Source: Cramer's Stop Trading! A Market Watershed (12/16/08)