RealMoney Radio Mailbag: Not Too Hot, Not Too Cold

A listener learns the definition of Goldilocks economy.
Author:
Publish date:

Editor's note: The following are questions received from listeners of "RealMoney Radio." To send Cramer a question about topics from his radio show, click here. Listen to Cramer's latest radio show by clicking here.

What is a Goldilocks economy?- Shavon from California

Jim Cramer

: A Goldilocks scenario is when things aren't so good that the Fed has reason to keep raising rates, but not so bad that they are falling apart. This type of economy tends to keep the Fed and other policymakers on the sidelines, allowing the economy to gradually improve, a favorable scenario for stocks.

If Advanced Micro Devices (AMD) - Get Report actually did buy ATI Technologies (ATYT) , what would happen to AMD's share price?-- Bill from Yonkers

Jim Cramer

: If AMD actually did go and make a bid for ATI, AMD's share price would probably go down. This would be a normal reaction for the acquiring company in an acquisition, though occasionally acquiring companies will go up on a deal announcement if it excites investors enough, as which happened with

GameStop

(GME) - Get Report

and

Electronics Boutique

last year.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here

.

At the time of publication, Cramer had no position in 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

Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click

here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click

here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click

here to get his second book, "You Got Screwed!" and click

here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here.

TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.