Cramer's 'Mad Money' Recap: The Fed's Reckless Moves

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The Federal Reserve's latest measures to ease the liquidity crisis have done the reverse -- they have actually put more pressure on banks, brokers, savings and loans companies and homebuilders, Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

Cramer said Wachovia (WB Quote - Cramer on WB - Stock Picks), Ambac (ABK Quote - Cramer on ABK - Stock Picks) MGIC (MTG Quote - Cramer on MTG - Stock Picks), Countrywide Financial (CFC Quote - Cramer on CFC - Stock Picks), Washington Mutual (WM Quote - Cramer on WM - Stock Picks) and the two worst of them all -- Fannie Mae (FNM Quote - Cramer on FNM - Stock Picks) and Freddie Mac (FRE Quote - Cramer on FRE - Stock Picks) -- were all hurting Wednesday.

Meanwhile, defensive stocks like PepsiCos (PEP Quote - Cramer on PEP - Stock Picks), Procter & Gambles (PG Quote - Cramer on PG - Stock Picks), Colgates (CL Quote - Cramer on CL - Stock Picks) and Diageos (DEO Quote - Cramer on DEO - Stock Picks) all did well, he said.

While the Fed may think it has solved the problem with this intervention, any investor knows the plan looks like it's pointing straight toward the supermarket stocks and far away from the banks, he said.

What the Fed needs to do is its homework, Cramer said. It needs to get out of the tower and onto the trading desk. They haven't made the phone calls and done the research they should have before they acted, he said.

The Fed sees robust employment and good business from companies that do a lot of business overseas, Cramer explained. But what it needs to do is take a step back and look at the bigger picture.

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