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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Cramer's 'Mad Money' Recap: Sparking a Comeback

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






NEW YORK (TheStreet) -- You can't start a fire without a spark, Jim Cramer told "Mad Money" viewers Thursday. In the case of the U.S. economy, that spark is Federal Reserve Chairman Ben Bernanke.

Cramer said Bernanke's goal is simple: keep the economy hot enough to spur hiring. But after his first round of interest rate cutting and bond buying failed, and his second round of massive bond buying also fizzled, Cramer said this time Bernanke is really pouring on the gasoline. According to the Fed's statement Thursday, it plans on keeping the economy hot enough that companies will eventually not only want to hire, they'll need to hire.

There are many things the Fed can't control, said Cramer, like the continued woes in Europe and the stalled Chinese economy. But what Bernanke can control is the U.S. housing market, by keeping interest rates super low, and the banking sector, by instilling confidence that it's OK to loan money.

Cramer said both of these actions will work off the remaining housing glut in our country and eventually stimulate home building, which is a big portion of our economy.

When home prices are rising, people feel richer, said Cramer, and that in turn will stimulate other sectors of the economy including retail and autos. He said keeping interest rates low also keeps a lid on the U.S. dollar, which helps companies that sell internationally as well.

Cramer said there are plenty of skeptics about the Fed's actions. While he's not ready to begin celebrating quite yet, he thinks things are starting to move in the right direction.

Executive Decision

In the "Executive Decision" segment, Cramer spoke with Michael Sutherlin, president and CEO of mining equipment maker Joy Global (JOY), a company that may be poised for a turnaround thanks to the Federal Reserve's actions.

Sutherlin said Joy Global is starting to see a bottom in both the U.S. and Chinese markets, and he feels pretty good about his company's prospects in both places. While the company still expects 2013 to be flat to down slightly from 2012 levels, Sutherlin is optimistic about his company's project flow, and it still has streamlining and cost-cutting to be done.

Stock quotes in this article: JOY, MTW, EXE, CLNE, FRAN, JCP, JCG, MLNX, HPQ, YHOO, FSLR, CHS, PLD, CLF, HCBK, MO, ABT 

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.
DOW 16,434.10 +25.56 0.16%
S&P 500 1,869.01 +4.16 0.22%
NASDAQ 4,108.5660 +13.05 0.32%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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