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

'Mad Money' Recap: Buffett Comes to the Rescue (Final)

Stocks in this article: SAPCOPBIDUTRVKMPMWESLRC

Search Jim Cramer's Mad Money trading recommendations using our exclusive Mad Money Stock Screener and watch Jim Cramer's Mad Money Post Game video exclusively on TheStreet.com.


NEW YORK ( TheStreet) -- "It was time to give some back," Jim Cramer frankly told the viewers of his "Mad Money" TV show Thursday after another down day on Wall Street.

Cramer said after two days of stock market gains, gold reversed course and headed higher as the crisis agenda returned to center stage.

America is back on recession watch, said Cramer, as disappointing jobless claims once again fanned the flames of worry. "There's still nothing good happening in Europe," Cramer added, as leaders there are still on vacation.

But there was at least some good news, said Cramer. First, shares of Apple (AAPL), a stock which Cramer owns for his charitable trust, Action Alerts PLUS , didn't get crushed after CEO Steve Jobs announced his resignation. There was also the news of Warren Buffett taking a $5 billion stake in Bank of America (BAC), another Action Alerts PLUS name.

Cramer said the news of Buffett's investment is particularly good news for the beleaguered bank. He recalled that in 2008, there were bear raids on bank stocks that drastically lowered share prices, spurring rating agency downgrades that led even lower prices and eventually sent countless banks to their demise. Cramer said the same thing was happening with Bank of America, as the shorts were circling like vultures, waiting for their next move.

But just as the short sellers were close to cracking the safe at Bank of America, in comes Warren Buffett, putting all of those fears to rest once and for all. The worst case scenario is off the table, said Cramer, but the bank still has a lot of work ahead of it. He said shares of Bank of America might even soon be a buy.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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!
DOW 16,380.41 +263.17 1.63%
S&P 500 1,886.76 +24.00 1.29%
NASDAQ 4,258.4380 +41.0480 0.97%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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