Jim Cramer Tells People to Take Your Money Out of the Market NOW!

Jim Cramer, who is usually bullish on stock market declines, told people on The Today Show to immediately sell stocks in order to remove that cash from the stock market, and hold onto it for the next five years, which is how long Cramer estimates it could take to recover from this market crash. I’ve never seen Cramer look like he’s taken such an emotional beating. Obviously his conscious is working overtime.

Back in November of 2007 Jim Cramer talked with Meredith Vieira about the housing market, and attacked New York State Attorney General Andrew Cuomo for going after banks, Fannie Mae, and Freddie Mac, for giving bad mortgage loans to people who can’t afford those mortgages. Cramer wanted to see those organizations give out more bad loans, so more people could purchase homes they couldn’t afford.

Perhaps it’s time for Cramer to apologize to Cuomo.

In case you’re wondering why the stock market is still selling off today despite the $700 billion bailout, it’s the sell-off I predicted. Short stock sale restrictions that were put temporarily in place in September to stabilize the market have been lifted, and now the bloody sell-off I talked about is occurring. Cramer thinks the market could lose 20% from its high. We’ll be feeling the effects of the mortgage meltdown for many years to come.

The bigger meltdown however, might not come until the home mortgages we (the government) purchased, are defaulted on again by the home owners living in those homes, who still can’t afford to pay those mortgages. The $700 billion bailout never solved the underlying problem. We should have foreclosed on those home mortgages, and sold those properties to people who can afford to pay the new mortgages.

What should we do now? Save money, we’re all going to need it for the tough times ahead.