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Jim Cramer's 'Stop Trading!': Buy U.S. Steel and Petrobras

Cramer also offered his take on the broader economy.

Buy U.S. Steel (X) - Get United States Steel Corporation Report and Petrobras (PBR) - Get Petroleo Brasileiro SA Sponsored ADR Report Jim Cramer said on CNBC's "Stop Trading!" segment Friday.

U.S. Steel's purchase of a scrap company alleviated Cramer's primary concern, he said, and Petrobras is right here.

Cramer had much more to say about the overall economy. "Why can't we have a sovereign fund?" he asked. "Why does it have to be countries that we have questions about?"

Cramer lamented that the U.S. isn't investing in ailing businesses. "We're too busy giving $600 to everybody," he said, referring to Congress' economic stimulus package, which offers a rebate to taxpayers.

Turning his attention to the

Federal Reserve

, Cramer said, "How much is the market saying we need a Fed cut over the weekend? ... I heard a health care fund is going out of business, I heard a muni is going. ... The Fed has to buy back residential mortgages. ... They need to get in front of the tune here."

"The banks need capital. It isn't that they don't want to lend." Cramer said that the Federal Reserve needs to buy up bad paper.

Cramer pointed to

AIG's

(AIG) - Get American International Group, Inc. Report

quarterly conference call today to illustrate the market's dismay. "That was a nightmare call," he said. "How many nightmare calls can we have on a given day?"

Lauding

TheStreet Recommends

Thornburg Mortgage

(TMA)

CEO Larry Goldstone, who said that the government should be using the money it's spending on the stimulus package to buy triple-A mortgage paper, Cramer said, "Larry is a very sophisticated player." He said Goldstone's sophistication stood in contrast to what was going on in Washington, and lamented "people who were so laissez-faire, like a

Treasury Secretary Henry Paulson, they checked their sophistication at the door."

At the time of publication, Cramer had no positions in any of the stocks mentioned.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, 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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