Cramer's Mad Money - Cramer Strikes Back (3/24/09)

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday March 24.

Cramer Strikes Back: Fannie Mae (FNM), Freddie Mack (FRE)

After his critics fired at him with clips of calls that missed the mark, Cramer has compiled his own sampling of statements he made warning viewers about impending "financial Armageddon." Cramer played a few clips proving that he spoke about potential bank failures and urged investors to prepare for the problems ahead. Cramer gives credit to his sources, who have been in the business for many years and saw the crisis coming. However, the same sources see an upturn coming soon and recommend buying stocks.

Morgan Stanley (MS), Goldman Sachs (GS), JP Morgan (JPM), Bank of America (BAC), Citigroup (C)

The hedge funds and shorts which were bringing down the financial sector may now find themselves pouring money into bank stocks. With Geithner's plan to buy back toxic assets and Bernanke pledging that he will not allow another bank to go under, there is renewed confidence in financials. Cramer would buy Morgan Stanley, Goldman Sachs, JP Morgan, Bank of America, Wells Fargo and Citigroup now that financials are back in favor.

Procter & Gamble (PG)

The only ones who love Procter & Gamble are consumers loyal to the company's brands, but that will soon change. Sales were down 5% the last quarter because of the strong dollar. Since the company has strong international exposure, the weakening dollar will most likely mean more overseas sales. While PG was forced to pass higher commodity and energy costs on to the consumer, lower raw costs will now benefit the company. Five out of the 10 best-selling brands in the U.S. were Procter & Gamble brands, and the company is not losing out to private label competition. While the 3.4% dividend is not huge, the fact that the company raised it is a sign of confidence. Cramer sees an eventual upside for Procter & Gamble, but until then, the dividend pays off while waiting.

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Comments

[User 365859:]

The Cramer and all the talking heads on CNBC all missed the entire debacle. Larry I do not have a brain Kudlow,has been telling investors at evry point in this market to jump in 14,000-12,000 10,000 8,000 and he has been wrong at every turn.
They missed the key criminal behavior by wall street colluding to set prices and manipulate the market leverage and assets.
It is impossible to mitigate risk across all asset classes.Someone must assume risk or there will be no returns. The alleged insurance and hedging only works if there are winners and losers but the model assumed everyone could keep winning.
AIG would have had to had assts of the entire mortgage market to cover losses but when you add 40 leverage on top then no entity except as we have seen (governemnts) could cover the losses. The insurance which the banks had to know was a ponzi scheme as long as no one asked for their money the money machine could keep cranking.

The real solution would have been to nationalize AIG and unwind all the trades for the bad actors. ie the banks and hedge funds the good actors the clients of banks and hedge funds would be made whole.
You then nationalize the bad actors if they are bankrupt and do the same again.
This would have flushed out the bad actors and sent quite a few people to jail. Like the ceo of Merril,Citi,Golman,Leh... Stearns and the list just goes on!!

Mar 25 11:32 AM

[Jack Daniels:]

Cramer is like the Rattner's Soup Truck.
Every day a "new soup pof the day"

Mar 25 12:46 PM

[James Wilson:]

On TV he say buy buy buy while in the Members Newsletter he says sell sell sell when the sucker buy buy buy ,

Mar 25 06:19 PM

[Maxe Paul:]

Sorry, am i missing something here?, we are talking about CRAMER, the guy who told people to buy at the top, then called the bottom at 12,000, told everyone to sell at 750, and was telling people to buy Bear Stearns at $50 and sell at $2.00.

Must be another guy called CRAMER, because Jim has no credability left, not that he ever had much!

The only thing we can gain from this is Cramer is now buying, so SELL SELL SELL!

"After his critics fired at him with clips of calls that missed the mark, Cramer has compiled his own sampling of statements he made warning viewers about impending "financial Armageddon." Cramer played a few clips proving that he spoke about potential bank failures and urged investors to prepare for the problems ahead. Cramer gives credit to his sources, who have been in the business for many years and saw the crisis coming. However, the same sources see an upturn coming soon and recommend buying stocks"

Mar 26 09:59 AM

[KFC007:]

CRAMER IS ALWAYS MOST LOGICAL AND THERE IS NO DOUBT ABOUT THAT. HE HAS INVESTOR'S INTEREST IN HIS HEART AND MIND AT ALL TIMES

Mar 26 12:10 PM

[redrum:]

When are they going to finally admit what the guy is? He should be required to do his show in clown make up, that way they wouldn't need to run a disclaimer regarding his dart throws.

Mar 26 05:49 PM