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: No Saving Europe (Final)

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) -- "The cavalry isn't coming to save Europe," Jim Cramer announced to his "Mad Money" TV show viewers Monday. "If you're hoping for the cavalry, stop," he continued, "as hope should never be part of the investing equation."

Cramer said there are many things wrong with the cavalry thesis in Europe. First, he said, there needs to be a cavalry before it can ride to the rescue. But just who would that cavalry be?

With so many banks and countries in need of help, Cramer said the incredible size of a bailout is unfathomable. He said there will be money available to bail out depositors at these banks, but shareholders and bond holders will most certainly be left out to dry.

These banks and countries can, of course, continue to offer new bond auctions, he said, but for how long? Cramer said these auctions are a recipe for instant losses and the world's investors won't be fooled for long.

Cramer explained that the European Central Bank won't act as the cavalry because they can't agree on anything. The Germans won't be the cavalry either, as they're too worried about inflation. Some think the Chinese will ride to the rescue, but the Chinese are already losing money in Europe and aren't likely to throw good money after bad. Even the Middle East isn't likely to invest, as they too are already heavily involved in the crisis.

So with no one left to ride to the rescue, Cramer said he scoffs at the idea that a cavalry will ever come to save the banks and countries of Europe. He said that investors need to stop expecting a rescue and warm up to stocks with dividends, like Bristol Myers-Squibb (BMY) and Pfizer (PFE) and utilities like ConEd (ED) and Duke Energy (DUK).

Cramer was recently asked about Plains All American Pipeline (PAA), an oil and gas master limited partnership, and how it compares to his all-time fav Kinder Morgan Energy Partners (KMP), one of the stocks he owns for his charitable trust, Action Alerts PLUS . Cramer said that in the long-term, Kinder Morgan remains his favorite, but after doing the homework, he discovered that in the shorter-term, Plains All American is also worth looking into.

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 17,265.99 +109.14 0.64%
S&P 500 2,011.36 +9.79 0.49%
NASDAQ 4,593.4250 +31.2360 0.68%

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