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Cramer's 'Mad Money' Recap: Rate Cuts No Cure All

The rate cuts won't help the markets but could forestall another Great Depression, Cramer says.

Click here for an archive of Jim Cramer's Mad Money recaps.

Jim Cramer told viewers of his "Mad Money" TV show Wednesday that the worldwide interest rate cuts today were simply too little, too late to help the markets.

Cramer said the rate cuts should help banks in the short term, but they are far too late and shallow to make any difference for stocks in 2008.

Throughout the financial crisis, he lamented,

Federal Reserve

Chairman Ben Bernanke has been "clueless" and so incredibly behind the curve that he should be fired.

Cramer compared today's markets to that of 2003, when then Fed Chairman Allen Greenspan took short-term interest rates to just 1%. Back then, he noted, there was no financial crisis of epic proportion, no credit crisis and no housing crisis. Yet today, Bernanke expects the markets to be fixed with just a mere 1/2-point cut.

Cramer acknowleged today's rate cuts represent a huge influx of cash and are a step in the right direction, but he said it would still take two years for the markets to recover. He called for several more rate cuts to completely remove the chance of a depression from the table.

In the near term, Cramer advised viewers to be cautious and stay in a capital preservation mode. He told them again to sell into any strength in the markets and to continue to raise cash throughout the remainder of 2008. "Put any money you might need for purchases in the next five years into a Federal Deposit Insurance Corp. insured savings account," he said.

Cramer: Focus on the Time Frame

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Hedge Fund Victim

Cramer checked in with

Quanta Services

(PWR) - Get Quanta Services, Inc. Report

chairman and CEO John Colson, to see if this wind and energy play is still blowing strong in a crumbling market.

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Cramer last recommended Quanta, which he owns for his charitable trust,

Action Alerts PLUS, on July 15 at $29 a share. Since then, the company's shares have fallen to under $19 a share, and that has Cramer worried.

Colson said Quanta has not been affected by the market meltdown, noting its business has been going strong. He said the recent wind tax credit extension passed by Congress will help Quanta, which builds and maintains power lines and switching stations for alternative energy projects.

Colson said Quanta's fundamentals remain strong, and he's seen no cutbacks or cancellations of any wind power projects. He reminded viewers that utilities build wind farms for their renewable and low-carbon benefits and those benefits are not affected by the daily price of oil.

He said the company expects to see $150 million in revenue this year from wind and renewable sources and strong growth going forward.

Cramer said Quanta is much better today than it was when he recommended it in July. He attributed the decline in the stock price to nothing more than relentless hedge fund selling, noting a huge 3.8 million share block that crossed the ticker on Tuesday.

Am I Diversified?

Cramer talked with callers and evaluated their portfolios to see if they have what it takes for today's tough market.

The first caller's portfolio included

US Bancorp

(USB) - Get U.S. Bancorp Report


Kinder Morgan



Southern Company

(SO) - Get Southern Company Report



(PFE) - Get Pfizer Inc. Report


Taiwan Semiconductor

(TSM) - Get Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR Report


Cramer congratulated the viewer for an excellent dividend-paying portfolio that'll likely make money while all others lose money.

The second caller's top holdings included

Genco Shipping

(GNK) - Get Genco Shipping & Trading Ltd Report


Penn Virginia Resources






Norfolk Southern

(NSC) - Get Norfolk Southern Corporation Report


Packaging Corp. of America

(PKG) - Get Packaging Corporation of America Report


Cramer said this portfolio, too, was diversified and ready for a rough market.

The third caller had


(T) - Get AT&T Inc. Report


Phillip Morris

TheStreet Recommends

(PM) - Get Philip Morris International Inc. Report



(EXC) - Get Exelon Corporation Report


Dow Chemical

(DOW) - Get Dow, Inc. Report



(AA) - Get Alcoa Corp. Report

as their top five stocks.

Cramer said this portfolio, while diversified, is losing money, and he's not a fan of Alcoa or Dow Chemical after their recent acquisition.

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Lightning Round

Cramer was bullish on


(FRO) - Get Frontline Ltd. Report


Nordic American Tanker

(NAT) - Get Nordic American Tankers Limited Report


Deere & Co

(DE) - Get Deere & Company Report


Novartis AG

(NVS) - Get Novartis AG Sponsored ADR Report


Anadarko Petroleum

(APC) - Get Anadarko Petroleum Corporation Report



(VZ) - Get Verizon Communications Inc. Report


He was bearish on


(DRYS) - Get DryShips Inc. Report



(ABB) - Get ABB Ltd. Sponsored ADR Report


Allied Irish Banks



Emerson Electric

(EMR) - Get Emerson Electric Co. Report


Goodyear Tire & Rubber

(GT) - Get Goodyear Tire & Rubber Company Report



(RIG) - Get Transocean Ltd. Report


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At the time of publication, Cramer was long Quanta Services, Deere & Co.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.