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Cramer's 'Stop Trading!': In Defense of Credit

People need credit, says Jim Cramer.

"I think people are recognizing that the dilemma of credit card companies is that if they don't charge a certain rate, they'll go out of business," said Jim Cramer on Thursday's "Stop Trading!" segment on CNBC.

Earlier today, President Obama announced plans for legislation to

protect consumers from certain credit-card-company practices

, but he did not come out as strongly against the credit-card industry as people had been expecting.


Capital One


is going up, not down, because the president did not bash" it, he said.

The bottom line, Cramer said, is that "people need credit."

At the time of publication, Cramer was long XXX.

Jim Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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