Cramer: Political Gambits Aren't Enough Here

Tax rebates and mortgage forgiveness don't provide enough reason to take a nibble.
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Tax rebates? Oh please.

Mortgage forgiveness for some? Oh please.

Save our money and our time. We are going to need every penny of this money for the giant checks we are going to have to write to

Fannie Mae

(FNM)

and

Freddie Mac

(FRE)

to pay for the losses they are going to absorb.

In truth, anything will help. The spike in mortgage defaults, auto loan defaults and credit card defaults in 2008 will be much worse than 2007 without some relief from taxes and the

Fed

.

But it would be a heck of a lot better to have the federal government

not

print more money, if only because it is inflation that is keeping the Federal Reserve from moving swiftly, and other than ethanol/oil, the only steady inflation is the decline of the dollar, which tax cuts would most certainly hasten.

I continue to believe that we are in a nasty box, and it gets nastier when the politicians try to work around the Fed. I believe in cuts as a way to get us out of this mess, but as the defaults mount, the damage grows and the number of companies that can make it through this period declines.

So, if you are buying anything today because of the hopes of a rebate tomorrow, my suggestion is, forget about it. You need better reasons.

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

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