Cramer's 'Mad Money' Recap: Nov. 6
11/06/08 - 08:08 PM EST
Scott Rutt
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"No one wants to be more bullish about the markets than me," Jim Cramer told viewers at the start of his "Mad Money" TV show Thursday. But after another triple-digit slide in the Dow Jones Industrial Average, Cramer said he just can't find a catalyst to take the markets higher. Consumer spending, which accounts for two-thirds of the U.S. economy, is withering away, said Cramer. People are just not spending, and that is evident in the earnings of company after company. Cramer said the auto industry, also a driver of growth for the economy, has died, too. He cited Toyota (TM Quote - Cramer on TM - Stock Picks), down almost 13 points today, as a sobering reminder of the depth of the problems in that industry. He again called for a massive federal bailout of all U.S. automakers. Other areas of the economy are also suffering, said Cramer, from the continued decline in the housing market, to even bonuses for Wall Street stock traders. Nothing seems to be going right domestically, he said. Cramer reiterated earlier sentiments that the fate of the U.S. economy is tied to the economies of Europe, China, Russia, and Latin America, which are also teetering on the brink of collapse. He said the foreign central bankers must slash interest rates significantly to avoid a worldwide recession. The only stocks that work, he said, are high yielding dividend stocks, recession proof names and companies trading at near their cash values. But even these companies, warned Cramer, are not immune to further declines. He recommended Caterpillar (CAT Quote - Cramer on CAT - Stock Picks), along with AT&T (T Quote - Cramer on T - Stock Picks) and Verizon (VZ Quote - Cramer on VZ - Stock Picks) as some names to consider.
Cramer: Expect Retail Sector to Stall |
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