It doesn't matter how good or bad President Bush's plan to alleviate the mortgage crisis is, Jim Cramer said on
"Stop Trading!" segment Thursday. It's more important to find a way to make money off the government's action.
"I'm tired of hearing that this is a bailout. Who cares? I'm about the money," Cramer said. He cautioned against getting too close to stocks with subprime exposure, because "there's a lot of money bet against these stocks, and all those people one way or another are going to come on air and say the plan's a joke."
Cramer said he has faith in a recovery: "The system isn't going to collapse."
The blame for the current situation should be shared among the government, the market and homeowners, Cramer believes. "Nobody asked the people on staff to go after the deadbeats," he said. As such, now is not the time to point fingers. "I don't care who did bad. I don't want
"I want people who watch this show to make money," Cramer continued. He believes investors can't make anything if Fannie Mae and
Pressed about his assertion that the government-backed funders of mortgages are in so much trouble, Cramer said, "They're totally insolvent! Give me a break. They're completely and utterly insolvent. Its just we're not allowed to say it. ... The only reason I mention those two ... is that those two are less likely to go after me."
People aren't reporting the truth about the mortgage problem for fear of liability, Cramer believes. "It's like when Enron filed a lawsuit against me. ... It's a good thing they went out of business."
Fundamentally, Cramer says, something must be done. "Everybody knows we've got to slow the process down so these companies can raise money. ... Fannie and Freddie are fine because they have the implicit backing."
Cramer concluded by clarifying his views on China. Although he believes the Chinese people are to be lauded for their performance in capitalism, "The government itself has got to reign in some of the companies that are rapacious in taking advantage of us." He believes the Chinese people are fine and apologized for any misunderstanding, but also said he believes strongly that China must trade fairly.
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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