Jim Cramer is thrilled that Ben Bernanke has been tapped to become the new Federal Reserve chairman "because he's not Alan Greenspan," Cramer said on his
"RealMoney" radio show Monday. Cramer believes that Greenspan stayed too long, and it's time for someone who understands that "finance has advanced well beyond the Fed's ken under Greenspan." Cramer is critical of Greenspan's handling of the 2000 stock market bubble and his efforts to cool the housing market. In 2000, instead of raising margin rates to prick the stock market bubble, said Cramer, Greenspan bludgeoned the entire economy by raising all interest rates, which caused "one of the worst recessions we've ever had." This year, Cramer said, Greenspan has again used the blunt instrument of raising interest rates to cool the housing market when he simply could have cracked down on interest-only mortgage loans. Cramer is also critical of Greenspan for staying silent on budget deficits and for "obfuscating and confusing us" with his language on the economy. Cramer believes that Bernanke will speak up about budget deficits and will use plain English to communicate. In Monday's "Stealing Stocks" segment, TheStreet.com contributor Len Dykstra was bullish on Cabot Oil & Gas ( COG), which will report earnings Thursday. Cramer said Cabot was a "pretty inexpensive stock." In response to a question about HDFC Bank ( HDB), Cramer said he was puzzled by the stock's recent selloff. But, given the recent price action, he isn't positive short term. Long term, he said, "there's nothing the matter, and that's what matters the most." Commenting on Texas Instruments ( TXN), which reports earnings Monday afternoon, Cramer said the stock has sold off recently in sympathy with Broadcom ( BRCM). That's a mistake, he said, because Broadcom reported a strong quarter, and he believes that Texas Instruments' quarter will also be strong. Cramer is looking for EPS of 40 cents and long-term gross margin of more than 50%. He believes that both Texas Instruments and Broadcom are buys.
In response to a question about options, Cramer said the vast majority of individual investors should ignore options. But, if one wants to learn more, Cramer would recommend reading the section of his book,
Jim Cramer's Real Money: Sane Investing in an Insane World , that deals with options. A caller asked about Sanmina-SCI ( SANM). Cramer said "I don't want anything to do with Sanmina." Cramer said a top executive had recently left the company and that overall, contract manufacturers such as Sanmina, have not delivered recently. In response to a question about Exxon Mobil ( XOM), Cramer said he believes that the company will achieve his $1.39 EPS target and that he would not sell Exxon here.