Cramer: Fed Astonishingly Clueless
This post appeared earlier today on RealMoney. Click here for a free trial, and enjoy incisive commentary all day, every day.
You see AIG (AIG)? You see it sneaking higher and higher? You see the businesses it is now selling off and how much they are worth?
That's what happens if you have time. That's what should have happened to the too-big-to-fail Lehman Brothers. It would have been the same way. In fact, I would argue that Lehman had even more saleable assets than AIG, assets that if it had a chance to sell -- notably the ones that everyone is bidding for or has bought, and if it could have just been given the same deal -- it would have been a home run. We would not be in this credit crisis if the government had given Lehman a similar deal. We would not have had the breaking of the buck, we would not have had the insurance collapse, we would not have had the forced shooting of stocks because the hedge funds couldn't get their cash back, we would not have had the runs on Goldman (GS) and Morgan Stanley (MS), and we would not have had a level of turmoil that has frozen all credit markets.
We still don't know the extent of the damage still coming from Lehman. But we do know that the federal government has made it so we are all afraid.That's not going away. My hope is this -- new president, better team. At the time of publication, Cramer was long Goldman Sachs and Morgan Stanley.
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