Jim Cramer's Mad Money In-Depth, 4/2/08: Hillary's Second Round with Cramer

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program,Wednesday April 2. Click on a stock ticker for more analysis.

Hillary Clinton Hillary Clinton spoke to Cramer about expanding the power of federal agencies such as the Security Exchange Commission and the Federal Reserve, which needs a strong hand to “navigate the choppy waters” of the turbulent economy; If they're going to open the discount window to noncommercial banks, which they have done, then they're going to have to provide more oversight.”

She faulted the Bush Administration’s “laissez-faire” attitude in not taking swift action to avert the credit crisis; "It's a new world where we need to have more oversight and transparency," she said. "We need to have a different attitude and ask the tough questions."

To stem unemployment, Clinton considered doubling the research and development tax credit. She would end subsidies for oil and give the funds to companies developing alternative fuels. She conceded she would allow additional drilling for oil and natural gas “where appropriate.” Finally, she urged the Federal Housing Administration to help struggling homeowners secure their homes rather than their using their 401k plans to prevent foreclosures.

CEO Interview: Steve Leer, Arch Coal (ACI)

It seems that ethanol is not as green as it is reputed to be, and Cramer thinks coal, long-hated by environmentalists, might be the answer. Coal may be even cleaner than ethanol, since it contains very little sulfur, said Leer. Also, the forests that need to be cleared to make room for corn acreage might create a larger environmental problem; Leer pointed out the entire state of Ohio would have to be cleared to plant enough corn to produce as much energy as one mile of coal mines in Wyoming. Even though Democrats have been historically opposed to coal, Leer said no political party would threaten the industry because “It would be impossible for the U.S. to stop using coal – or the world to stop using coal,” particularly with demand growing in China.

Mad Mail: Medco Health Solutions (MHS), Capital One Financial (COF), Verizon (VZ)

Cramer summed up what moves MHS: “What it trades on is competition from UNH and from Wellpoint and for Medicare reimbursement for Polymedica and for patent expirations. Those are all that matter.” He said the recent drop was due to worries about MHS’ 2010 projections. He likes the stock but urges caution. He told another viewer although COF is generous with auto loans and credit cards, it would take a serious recession to bring the stock down, and added COF is a “survivor.” Cramer defended his bullishness on VZ, saying it has been a dog of stock in the past, but is developing FiOs, Verizon Wireless, and offers a 5% dividend. Cramer predicts VZ is headed to $40-42.

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Comments

[User 171232:]

The Federal Reserve is not a Federal Entity! Someone needs to educate Hillary in the fact that it is a private corporation(Banking Cartel) The Fed really needs to be eliminated to end the manipulation of our money!!

2008 Apr 03 11:15 AM

[sapereaude:]

Clearly, the folks in megalopolis aren't very familiar with nature's economy. The tilth of arable (what makes the soil produce ethanol ingredients) is every bit as exhaustible as the oil in an oilfield. Ethanol won't do it. Only solar-derived energy will make an inexhaustible substitute for fossil fuels, which are, actually, Earth's solar energy savings bank. Think solar, wind, and hydro that doesn't require a dam--Gorlov turbines, for instance--any turbines that can be positioned under a bridge or in a boat in any riparian or tidal current--just as boat and bridge mills were used in Europe for many centuries.

2008 Apr 03 06:56 PM

[windinmyface2:]

Lets just be taxed 60% and let tthe government do all our thinking, and fretting for us, and we can sleep snug in our beds at night.

2008 Apr 04 01:54 AM