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: Don't Fear the Fed

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

NEW YORK ( TheStreet) -- The Federal Reserve will have to stop its stimulus eventually, Jim Cramer said Monday on "Mad Money," but this week's Fed meeting will not be the big, bad event that everyone is fearing.

Cramer reminded viewers Fed Chairman Ben Bernanke is a student of history and knows all too well the lessons of 1937 when the government thought the Great Depression was over and raised taxes prematurely. That move sent the economy back into recession, he noted, and today's Fed won't make the same mistakes twice.

There's simply not enough evidence that it's 1937 all over again, said Cramer, which is why he expects this week's Fed meeting to result in just more of the same.

Cramer said it's true that the housing market is heating up, but the quick spike in mortgage rates will likely cool things off in a hurry. Home prices are making some homeowners spend more but many more still are not. Unemployment is nowhere near the Fed's target of 6.5% and there simply aren't a lot of construction jobs being formed yet.

Overseas, our allies aren't in great shape either, said Cramer, with Europe still weak, Japan still in question and many emerging markets just in a constant state of flux.

So is now the time to begin withdrawing stimulus or is it 1937 all over again? Cramer said the answer is clear: The Fed needs to stay the course until many of these metrics begin to improve.

Hungry for Restaurant Stocks

There's no denying restaurant stocks are hot this year, Cramer told viewers, which is why he pitted two of the more restaurant chains against one another to see which one is the better investment.

When it comes to Red Robin Gourmet Burgers (RRGB) versus Bloomin' Brands (BLMN), there's clearly one winner.

Bloomin' Brands, purveyors of Outback Steakhouse and Carrabba's Italian Grill, is the larger of the two chains, with 1,471 locations compared to Red Robin's 475 locations. But even with the size difference, when it comes to what the markets are looking for most -- growth -- the two are roughly even, with Red Robin taking a slight lead at 4% growth compared to Bloomin's 2% growth.

1 of 3

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 17,131.97 +100.83 0.59%
S&P 500 1,998.98 +14.85 0.75%
NASDAQ 4,552.7590 +33.8570 0.75%

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