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"The U.S. has now done everything it can to save itself," Jim Cramer told viewers of his "Mad Money" TV Show Friday.
The fate of the U.S. economy and the stock market rests firmly in the hands of the European and Chinese central banks.
Cramer said the federal government has run out of tools after the countless rate cuts, bailouts, takeovers and seizures. "We can't do much more than we already have," he said.
He said whether the U.S. endures a recession or jump starts growth depends on the actions of the central banks of the world. He noted their moves will be more important than the outcome of the presidential election.
"The Europeans are playing with fire," he said, "and they must act now." He begged the European central banks to act swiftly to avoid a global crisis.
While the fate of the global economy remains in flux, Cramer told investors to stick with the strategy he's endorsed all week.
He told investors to put their money in high-yielding dividend stocks. Second, they should invest in domestic, recession-proof names such as
Procter & Gamble
, which he also owns for his
Action Alerts PLUS portfolio.
And finally, they should invest in companies that are trading at or near their cash value.
These are the only classes of stocks that are safe, he said.
Cramer: One Bank Worth Buying
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A Sweet Breakup
With oil companies out of favor on Wall Street, Cramer said he's found an oil stock with incredible hidden potential. That's
, a classic case of the parts being worth more than the whole.
Marathon is an oil exploration and production company as well as an oil refining and transportation company. Cramer said this mix of business has been confusing for Wall Street to appreciate since exploration benefits from higher oil prices, while refining benefits from lower prices.
That's why Cramer saw value when Marathon said on its most recent conference call that it's considering splitting the company in two.
Marathon trades at just $29 a share, down 50% from its highs. But Cramer said he sees Marathon's exploration business fetching as much as $49 a share to $73 a share as a stand-alone company and its refining business going for $20 a share to $24 a share.
Marathon's exploration business makes for an attractive stand-alone company because it currently has 1.2 billion barrels of proven reserves, he said. Likewise, Marathon's refining business, the fifth largest in the U.S., is also attractive as oil prices continue to fall.
Cramer said he's a buyer of Marathon, especially given the company's 3.6% dividend yield, which he said pays investors to wait for a break-up to come.
A Pipeline to Profits
In his quest for high quality, high yielding dividend stocks, Cramer uncovered
, a master limited partnership that owns two natural gas pipelines.
Cramer said it's is an excellent choice for investors since its limited partnership structure pays a tax deferred dividend distribution of $1.90 a share, or 7.92%. The company is expected to pay $2.07, or 8.6%, next year.
Boardwalk is also a growth story, with the company's major shareholder,
, having just committed to a $1 billion investment for expansion of the company's pipeline systems, he said.
Boardwalk currently has three expansion projects underway and expects to double its revenue by 2012. With the U.S. needing more gas for energy independence, Boardwalk complements his other favorite pipeline,
Kinder Morgan Energy Partners
, he said.
Cramer was bullish on
Deere & Co
Philip Morris International
He was bearish on
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At the time of publication, Cramer was long Procter & Gamble, Deere and Altria.
Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com 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 TheStreet.com, 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 TheStreet.com is related to the specific opinions expressed by him on "Mad Money."
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