The stimulus is working, Jim Cramer told the viewers of his "Mad Money" TV show Thursday. Sadly, it's working not in the U.S. but in China where consumer demand is increasing, confidence is rising and jobs are being created, he said. Cramer said today's conference call by Alcoa ( AA), the first of the stocks in the Dow Jones Industrial Average to report its earnings, laid out a pattern that he fears will be followed by other companies.
Sell BlockIn Thursday's "Sell Block" segment, Cramer discussed colleague Ron Insana's call earlier today to sell defensive stocks in favor of a truly bullish portfolio. Cramer said he's not as bullish as Insana, preferring instead a more defensive and diversified portfolio. He did however find a few gems in Insana's comments. In particular, Cramer agreed with Insana's call to sell the likes of Microsoft ( MSFT) and Pfizer ( PFE). But Cramer advised keeping Verizon ( VZ) and Disney ( DIS), along with Bristol-Meyers ( BMY) and Cisco ( CSCO), two stocks which Cramer owns for his charitable trust,
Prize Money"When it comes to enforcement and examination, the Securities and Exchange Commission has been a big failure," said Cramer. He said the agency simply doesn't pay its people well enough to make it worth their while to catch the bad guys. But Cramer said there is a solution, one that's in use by the British. Cramer said that in Britain there's a concept of "super regulators," ones that are paid three to five times as much as their counterparts here in the U.S. Although these super regulators are highly incentivized to catch the bad guys, this system would likely fail in the U.S. because it's too expensive. But he said there is another system, which was used by the old British Navy, that's perfect. Cramer said prize money is the answer the SEC needs. Let regulators keep a percentage of the money they earn for the agency, he said. The bigger the offense, the higher the fines, and the more a regulator can earn, he said. This plan will cost the government nothing, he added, since all incentives are paid by the bad guys. Cramer also advocated paying reward money to whistleblowers. He said if a percentage of the ill-gotten gains were paid to whistleblowers, someone from Bernie Madoff's firm would've stepped up years ago. Cramer said reward money would work in many areas, including for the commodities futures markets.