This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Cramer's 'Mad Money' Recap: The Power of Hedge Funds (Final)


Cramer spoke with Sen. Tom Coburn (R., Okla.) about the U.S.'s amazing opportunity to avoid a liquidity crisis, like Greece is facing now, by issuing $2 trillion worth of 30-year treasury bonds to lock in low interest rates.

Coburn said those in Washington are focused only on short-term gains, and are afraid to spend $1 today to avoid spending $12 later. He advocated not only issuing $2 trillion to shore up the Treasury, but also $1.6 trillion more to shore up both Fannie Mae (FNM) and Freddie Mac (FRE). "The demand is there," he said.

Coburn acknowledged that such a plan would cost some $60 billion, but said not doing it would cost far more, as the country is poised for a liquidity crisis similar to Greece in about two years. He said rates will most certainly be higher then than they are now.

Cramer equated such a plan to a home owner locking in a 30-year fixed rate mortgage and agreed with Coburn that such a plan is vital to America's stability and its future.

Lightning Round

Cramer was bullish on Aruba Networks (ARUN - Get Report), Akamai Technologies (AKAM - Get Report), Procter & Gamble (PG - Get Report) and Bank of America (BAC - Get Report).

He was bearish on Mexican Economic Development (FMX) and Linn Energy (LINE - Get Report).

-- Written by Scott Rutt in Washington D.C.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AKAM $71.29 0.00%
ARUN $24.49 0.00%
BAC $15.31 0.00%
FMX $94.44 0.00%
LINE $11.57 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs