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Cramer: Saving the Banking System

Jim Cramer

So buying troubled assets was always wrong. I got it. All of that wrangling about what to do with the $750 billion was all seat-of-the-pants nonsense. There was no plan.

But what we've been doing, just letting the U.S. own everybody and everything - like the British plan -- is working so why not run with it?

I liked the idea of the Treasury buying troubled assets because I wanted to solve the mortgage crisis. From the looks of things, we were in such bad shape post-Lehman that we couldn't even waste the time doing that. We needed to solve a situation that was about a banking shutdown and the Troubled Asset Relief Program did that. That's why the rally. And that's why the rally continues because TARP has saved the system. The rally will keep rolling until it is clear that the system was saved and everyone from CIT(CIT) to Citigroup(C) is alive and able to do lending. It is basically making the Treasury the biggest bank on earth and if it is working I am not arguing with it.

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