On Wednesday's "Stop Trading!" segment on CNBC, Jim Cramer offered up a couple of suggestions for economic plans that he President-Elect Barack Obama adopts.
First, Cramer said he's "looking for an AIG (AIG)-type move" with General Motors (GM). He called for government injections into the automotive company. "The government buys a giant stake in GM, the common stock doesn't do well, but bonds do really well," he said. He suggested the same be done for Ford (F).
Cramer emphasized that the plan is not a socialist one. "This is the solution to GM and Ford," he said.
His next suggestion would provoke a bottom in housing, he said. "Bush really cracked down on immigration, to the point where a lot of immigrants felt like they couldn't get loans," Cramer said. He said that $300 billion buys 1 million homes and recommended that the government buy 1 million homes, take them off the market and let the immigrants come in to buy more homes. "This time next year, housing bottoms," he said.As for cable, Cramer said that people were anticipating a return to rabbit ears, but instead, "People are staying home, and they're loving cable more than ever. That's what this is about -- cable, DVR. It's cheap, cheap, cheap." He said that Time Warner (TWX), Comcast (CMSCA), AT&T (T) and Verizon (VZ) are all "really good."
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