Cramer said until we get more clarity out of Europe, our only defense will be in cash and high-dividend yielding stocks.Cramer said that when Treasury Secretary Tim Geithner said last week that there will be no more Lehman Brothers-style bank collapses in Europe, that didn't mean that there wouldn't be more pain, and more days like today. He said the Europeans seem to be doing all of the wrong things, like raising interest rates and not forcing their banks to raise more cash. But Cramer stopped short of comparing today's markets to that preceding the Great Depression or even that of a great recession. He said that 91% of the country is still employed, and our banks are in much better shape than they were just a few years ago. Cramer said while the Federal Reserve's new "Operation Twist" may fail to yield meaningful results, Fed Chairman Ben Bernanke, along with Geithner, are students of history and are not bound to repeat those mistakes. Cramer even went as far as to defend the ailing Morgan Stanley (MS), saying that his earlier comments about the company may have been too harsh. Cramer said Morgan Stanley is making a ton of money, even in this challenging environment, and the rumors of exposure to French banks are simply false. Even with at least some of our leaders doing the right thing, Cramer said the pain will continue, and the only place to hide will be in cash and of course, with high-yielding dividend stocks that offer a cushion as the markets head lower.
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