Cramer: A Way Out of This Mess

Cramer on the bailout: We want the private and public sectors to work together to heal this market, says Jim Cramer.

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• bailout
• bank
• congress
• cramer
• depression
• mess
• street
• wall

[nickfurry1958]

Restore consumer confidence. The government has put the cart before the horse. They need to gain control of the environment through stricter regulation, bring the bastards to trial, and inject money into infrastructure. Throwing good money after bad isn't going to get it done. We need to restore confidence and get the economy moving by injecting cash into the things like alternative energy production, rail, roads and bridges. We need middle America to start spending and investing again.

[ternel]

So what is your idea?

Has there been unethical business practice? Yes

But the people who had the most unethical behavior are already gone. The house is on fire so to speak. We need to deal with the situation before we get to prosecuting those who created this mess. There will be people who will go to jail for this, but right now we need to deal with this current crisis.

Injecting money into banks to encourage loans has worked in the past. I could work here.

What is your plan?

[nickfurry1958]

Investors and taxpayers alike have been burned one too many times by the financials. If it's not some sort of unethical CEO it's irresponsible lending practices. Banks need to be the sanity and a place of refuge for the financial markets. Instead, they are the anchor around it's neck. Spending 700 billion to remove toxic assets from banks does nothing to restore consumer confidence or free up the credit market. Fed Res is pulling out all the stops but it won't work. The titanic is sinking.

[ternel]

So your idea is the Hoover method and just let markets fall to the point where they ARE beyond a bailout?

The bailout may or may not work but what is the alternative? The bailout had to be passed and tried. If the boat gets a leak, you can either try to patch the leak or just let the boat sink. You may or may not be able to save the boat but you sure as hell did not make the situation worse.

[nickfurry1958]

We're now 4 days past the bank bail out...I want to remind you of my prediction several days before congress finally rubber stamped this bs..."Sounds like this 700 billion dollar bailout is for the irresponsible. By the way, it's not going to help. Unemployment will continue to rise, banks won't want to extend credit, the fed will continue to print money and inflation will rise."  So basically, none of this bail out money will trickle down to the flower shop owner.

[ternel]

There was once a man who had a small flower shop on Broad Street in New York. One day on the way to open up his store in the morning he bought a news paper and read how the stock market was falling and rich millionaires were losing their shirts. "Good Riddance" he thought. They are nothing but rich snobs.

A year later, he needed a loan to keep his doors open and couldn't get one. He lost his business and his family lived in poverty for 5 years.

That was in 1932. Wall street can not fail.

[nickfurry1958]

Free markets have cycles. If the government stays out of it, markets will cycle through downturns. It's the natural process where strong survive and the best stick around. They're trying to take the risk out of the markets and pass it on to the taxpayer. We're crippling the free market society. I shouldn't have to pay for this unless I invested in the markets, and then, only if I take market losses in my investments.

[nickfurry1958]

Connecting the dots...bad banks...any bank that irresponsibly filled their balance sheet with mortgage backed securities and lost billions of dollars when the real estate bubble finally burst. Let's bail them out for fair value and "stop the depression". Sounds like this 700 billion dollar bail out is for the irresponsible. By the way, it's not going to help. Unemployment will continue to rise, banks won't want to extend credit, the fed will continue to print money and inflation will rise.

[jbfloyd3]

He already did mention the Fed reserve in the past, he blasted Bernanke several in the past and saw this coming a mile away.

[ChiefOren]

Exactly. However, the Dollar that you saved would still retain it's original value. Before the Fed, the Dollar was devalued by 4 Cents over a period of 200 Years! But since 1913 (and the Federal Reserve) the Dollar has been devalued by over 400%!!!! So yes, we would have to save up for our houses, but your money would be yours to save.