Jim Cramer's Best Blogs

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NEW YORK (TheStreet) -- Jim Cramer fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. Last week he blogged on:

  • how to get the economy going again; and
  • why Kinder Morgan Energy Partners is such an exciting company.

Click here for information on RealMoney, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.


We Can Escape This Jobless Recovery

Posted at 1:56 p.m. EDT on Thursday, April 18

Lately, I've been hearing a lot about how housing can't save the economy, that it isn't big enough, that it can't do that much to move the needle.

I hear the same thing about the oil and gas business, that no matter how much we find it doesn't put a lot of people to work and the trade off, the increased use of fossil fuels, makes it so it's not worth supporting.

Let's see. How can I be diplomatic about these pessimistic judgments? How about this? They are all lies, lies that are keeping the federal government from helping the cause instead of hindering it.

First, housing punches above its weight. We know from the retailers and the homebuilders and the bankers we talk to that one dollar toward the purchase of a house can produce an additional $6 in spending to fix it up, make it bigger or gussy it up inside. That's why it needs to be supported and encouraged, because it can produce so many jobs. Instead the government's made it very difficult to get a mortgage, which has kept housing from breaking out to levels anywhere near where it used to be.


But what did Richard Smith, CEO of Realogy , the largest realtor in the country, say about the government's role in promoting the ability of people to get mortgages?

He said that "the only thing holding lending back is the extraordinarily difficult underwriting standards." That's because the feds have still not finalized the rules for banking under Dodd-Frank. The government has simply not spelled out the definition of who is qualified to get a residential mortgage. Without that definition banks are reluctant to give a mortgage to anyone except those who don't need one. Right now the FICO score for Realogy's book of business is extraordinarily and punitively high 760. I don't know anyone who can qualify at that level. That's wrong and it is truly stymieing the economy.

Oil and gas? If the president were simply to say, "Our goal is for us to be energy independent in this continent by the end of my administration," he actually might be able to pull it off. It could produce a million jobs if he did it, just in the oil and gas business. That's not even including the ancillary small businesses, as well as all the factory jobs that would be moved to where the energy from other countries. Yep, that's how cheap our energy has become.


The problem here is that in order to get to energy independence within President Obama's time in office, the president will have to say "Look, I hate fossil fuels, but we are going to emphasize natural gas in this country as the surface vehicle, the way they do in other countries with bountiful natural gas."

The president has the ability to order federal government automobiles to convert to natural gas, which would then foster a huge job-creating infrastructure to support those vehicles, which would then make the importation of oil for diesel fuel, one quarter of all that is imported, an irrelevance.

But instead, the president, in order to not anger his environmental base, says that he favors all sorts of energy, which is the same as saying nothing. You need to say, "Natural gas is our fuel, and we are going to use it to make cleaner skies and be energy independent."

Mind you I am not talking about giving this industry one red cent, unlike the handouts that the farmers got for ethanol or the bankrupt artists got for solar.

The jobs that would come from giving banks certainty when it comes to lending and lending the government's support to natural gas, not just solar and ethanol, could get us out of this jobless recovery. But the feds have to stop hindering the cause and start helping it.

There is a way. I just don't know if there is a will.

At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, had no positions in stocks mentioned.


Maybe Ditch the Kinder Waiting Game

Posted at 8:06 p.m. EDT on Thursday, April 18

Kinder Morgan Energy Partners is one of those stocks that you keep thinking, "When it comes in, I will buy it." But it never comes in. Not even when so many of these MLPs are doing secondaries does it sell off and you know they are total birds of a feather.

And if you saw my interview with Rich Kinder on "Mad Money" you would see why. It's because he anticipates demand like no other. He knows where the oil and gas is and recognizes where it has to be. That's why he always has more money-making projects to do. That then allows him to keep raising his distribution, which then, of course, drives the stock up, which matters immensely to him because he only paid a dollar a share and he has never sold a share!

Kinder's been busy buying the stocks of companies that everyone keeps fretting about because they worry about oil coming down. He bought El Paso and then followed it up immediately with a buy of Copano that hasn't closed yet. He's using Copano to get more lucrative Eagle Ford access because he knows, like Mark Papa from EOG , that the Eagle Ford is as big as the Bakken, where he had rail lines, or maybe even bigger.

But the two projects that are most exciting for shareholders right now are the Freedom and the Trans Mountain build outs. The former will take cheap oil from the Permian Basin to California, which is starved for domestic crude. The latter could allow Canadian oil to be refined and then sent to California by pipe. Can you imagine how fabulous that would be? New refined product to a state where you can't build a new refinery. It will be a gold mine.

Kinder's the smartest guy in the patch. He has a vision and a killer instinct. He's also now sure that nat gas will be the fuel of the future, which was something he seemed more hesitant about the last times I interviewed him.

Maybe you just have to stop waiting for it to come in and instead just pull the trigger.

At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, had no positions in stocks mentioned.

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