"All I really want for Christmas is for housing to bottom," Jim Cramer told viewers of his "Mad Money" TV show Wednesday. He said that when housing bottoms, everything else will recover. But in order for housing to bottom, Cramer said Santa, also known as the federal government, needs to give the economy a few Christmas presents. Earlier in the year, Cramer called a housing bottom for June 30, 2009. But he said this bottom could come even sooner if the government sets the tone and grants four Christmas wishes. Low home inventory and low interest rates aren't enough by themselves, he said, the government needs to do more. Cramer said first on his wish list is for Treasury Secretary Hank Paulson to promise not to give a single cent of the TARP money to the homebuilders. The builders, he said, created this problem by building far too many homes and selling them to unqualified people. If the government gives any aid to the homebuilders, they'll only build even more homes and slow the recovery further. Second, Cramer said President-elect Barack Obama needs to provide a tax credit to those buying a new home. This, he said, would not be a handout, but rather a reward for all those who sat on the sidelines and waited for the right time to buy a home. Third, he wants to see some homebuilders go bankrupt or merge. "There are just too many builders out there," he said, addingsupply needs to match demand.
Cramer: Watch the Manipulators