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Jim Cramer's 'Stop Trading!': Fed Forgiven

TheStreet.com Staff

The Federal Reserve finally got it right by cutting its target rate 50 basis points, Jim Cramer said on CNBC's "Stop Trading!" segment Wednesday.

"There's no interpretation, this was just positive," Cramer said. "We have money flush from the sidelines." He believes that the financials will mount a recovery based on the Fed's move. "Bank of America (BAC) will want to buy Countrywide (CFC)."

"Fifty basis points is good," Cramer continued. He anticipates a market recovery thanks to the rate cut.

Cramer observed that some positive results are already visible. "People bought the WaMu (WM) preferred. That's good. ... This is a huge positive, and the market should react. ... It's huge. ... GM's (GM) breaking out. The GM preferred ... is a fantastic piece of paper."

Investors should get in now, although "perhaps they'll give you something that is negative to give you another chance," Cramer said.

In Cramer's view, the export economy is "red hot." He said he was "raising numbers on all financials."

"All is forgiven," Cramer said of his previous animosity toward the Federal Reserve. "Financials should be bought."

Cramer added that playing the agriculture boom is still a smart move. "Oil's going to $100. ... I think you can still own Bunge (BG) upgraded. ... Archer Daniels (ADM) is good."

On the overall economy, Cramer declared, "I am bullish. ... I'm not going to change my mind ... [the Fed] did it right."