This Day On The Street
Continue to site
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

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 - Get Report), 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.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FRAN $15.10 1.10%
JOY $15.41 0.20%
MLNX $44.36 -0.56%
MTW $16.57 0.98%
TSLA $224.76 3.00%


Chart of I:DJI
DOW 17,834.24 +22.05 0.12%
S&P 500 2,088.16 -0.98 -0.05%
NASDAQ 5,109.3250 +6.5170 0.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs