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 Bears Are Wrong

Stock quotes in this article: VTR, SRZ, GIS, HEK, F, PWE, MCHP, KMR, LPSN, AAPL, UA, DAL, AGNC, SAN, T, BMY, DIS, KME, WFC, XOM, VZ, DO, DD, PEP, FB, MS, C

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

NEW YORK ( TheStreet) -- The bears may sound smart, but Jim Cramer told his "Mad Money" viewers Thursday he'd rather make money, which is why he took a minute to challenge the conventional "wisdom" the bears keep peddling.

With the markets so utterly focused on events overseas, Cramer fired up the Wayback Machine to remind investors what the bear case sounded like four years ago, and compared it to what actually happened.

Four years ago the world was falling off a cliff, according to the bears. There was the personal cliff with consumers harboring record levels of debt, the corporate cliff of heavily indebted corporations, the municipal bond cliff where every locality was nearing bankruptcy and, of course, the housing cliff where home prices were being obliterated.

Yet, over the last four years, the American consumer has been able to pare down debt, and a wave of refinancing has strengthened our corporations. Despite a few high-profile municipal bankruptcies, your local city hall remains intact. Yes, home prices were obliterated, but over the past four years the housing market has gone from severe overbuilding to a housing shortage in some areas. All in all, not the end of the world.

So today as the bears pound the table about Europe, they neglect to mention the markets have already discounted European profits of corporations to zero. China is just beginning its series of interest rate cuts, said Cramer, and rate cuts move stocks. Falling commodity prices are a good thing for the U.S., as is its production of a record amount of its own oil and natural gas.

The U.S. still faces its own euro-style fiscal cliff, but Cramer hopes leaders will wake up soon and address it. If our leaders abolish the uncertainty, that alone could pay for the belt-tightening that will be required, he added.

Cramer concluded by saying that when you look at it closely, "there's a lot less 'bull' in the bull case than you might think."

Executive Decision

In the "Executive Decision" segment, Cramer sat down with Debra Cafaro, chairman and CEO of Ventas (VTR), a real estate investment trust specializing in senior living centers and medical office buildings. Ventas has been delivering compound annualized returns of 32.5% a year and is up 680%, including reinvested dividends, over the past decade.

1 of 4

Select the service that is right for you!

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 17,042.90 -28.32 -0.17%
S&P 500 1,972.29 -5.51 -0.28%
NASDAQ 4,493.39 -12.4620 -0.28%

Brokerage Partners

Rates from

  • 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