Cramer's Stop Trading! How Goldman Will Rule the Street

Stocks discussed Jim Cramer's Stop Trading! Friday March 20.

Goldman Sachs (GS), Monro Muffler Brake (MNRO)

Obama's tax bonus bill will hit TARP recipients hard. The only financial that may be immune is Goldman Sachs, according to Cramer, since it is already able to pay off its TARP funds. Goldman will also be able to steal talent from its competitors. Goldman's potential equity offering is also attractive, and the investment bank may become “the repository of every single great investment banking client there is." However, good news for Goldman may not be so good for the rest of the sector; Cramer thinks the 90% tax on $250,000 bonuses for TARP recipients was too draconian.

Cramer thinks Munro has a good story; in spite of the fact it is in the auto industry, people will want to buy auto parts to extend the life of their cars. Cramer commented on Munro's "beautiful" quarter and would wait for a pullback before buying.

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Comments

[Allan Frain:]

How long has it been since any action by the Federal Government differed from what GS would have constructed in their own interest ?

Mar 23 09:58 AM

[Pissed-off ...:]

Cramer you son-of-%&@!!!!! You and people like you are the problem in our America!!!!!!!!!! Go crawl in the pitt with Satan!!!!!!!!!!

Mar 23 03:54 PM

[dsrtwriter:]

Cramer is always the cheerleader for GS. I remember less than two years ago he was shouting "Goldman is going to $300. Thank good ness I ignored him.

Sure, it probably is going to $300.... in about ten years or more.Cramer did not give a time frame. Smart guy.

Mar 23 04:55 PM

[grbn:]

Cramer's not watching the news. Congress intends to limit all executive salaries, not just for those accepting the Tarp. So eventually, it won't matter. They'll all be paid equally. I don't know why Americans stand still for this nonsense, but it's the change they voted for.

Mar 23 10:16 PM

[Responsibility:]

While there is the awareness to limit excessive salaries, US should also put regulatons on excessive expenses, in order to restore some confidence people have on US public companies. Luxurious life styles of executives are paid on company expense accounts. Executives working overseas may deserve certain additional compensations for their efforts, but there are a lot of excessive benefits as well.

Mar 24 11:06 AM