Burnett argued the economy was still growing. After one quarter
of negative gross domestic product (GDP) at the end of 2007, the
economy has rebounded with two positive quarters. But Cramer said
there was a difference between the economy and the banking system.
“Well, one is the difference between the economy and the
banking system,” Cramer said. “The economy really picked
up in 1936 to ’38 because of armament orders, and World War
II turned around the U.S. economy entirely, but there was still,
the banking system was still very frail throughout the ’30s.”
Cramer told Burnett he was disappointed in Federal Reserve Chairman
Ben Bernanke, who has studied the Great Depression. Cramer added
there is a need for another interest rate cut at the upcoming Federal
Reserve Board meeting on September 16.
“But you know, look – I hear you on the jobs, I hear
you on the economy,” Cramer said. “I don’t really
care. I’m talking about a dysfunctional banking system. We
don’t want Citi (NYSE:C) to go out of business. We don’t
want AIG (NYSE:AIG) to go out of business.”
House Speaker Nancy Pelosi, D-Calif., September 11 mentioned the
possibility of another rescue package – this one for beleaguered
investment bank Lehman Brothers (NYSE:LEH), based on its impact
on the credit markets.
Great Depression references have been used liberally by the media
in 2008. Networks have made endless connections to the Great Depression
– more than 70 times in the first six months of the year and
that’s just on the three broadcast networks..