Cramer: 'Obama Got it Right,' Bush Wrong on U.S. Economy

     One day, Jim Cramer is playing cheerleader for the U.S. economy, the next he is playing cheerleader for the Democratic presidential candidates, Sens. Barack Obama and Hillary Clinton.

     Cramer, whose position on the American economy seems to switch directions as often as the wind, came out on February 28 in an interview on MSNBC with Norah O’Donnell and said Obama was right when he preaches doom and gloom about the American economy.

     “[I]’m crazy but I made a lot of money in the game,” Cramer said. “So, maybe I know what I’m talking about unlike these other guys. Here’s the deal – Obama’s right. We’re getting numbers that are very, very bad.”

     President George W. Bush said in a speech on February 28 he didn’t “think we’re headed to a recession.” However, Cramer compared what Bush and his administration were telling Americans to what President Herbert Hoover was telling Americans during the Great Depression.

     “This fundamentals are sound rap that the president keeps using and that Treasury Secretary [Henry] Paulson keeps using, it’s just – you’ve got to go back to … you know, 1930, 1931 – when you had that nonsense from Hoover. They’ve got to drop that rap. The rap isn’t flying with the American people because people aren’t spending. They’re not going out to dinner. They recognize how many people are losing their jobs. Obama’s got it right. It’s kind of empirical.”

     Cramer asserted that housing is the “only” problem with the U.S. economy and he credited Clinton for recognizing it and proposing solutions.

     “There is only one problem in this U.S. economy and that is the depreciation of houses,” Cramer said. “I will say, and one of the reasons I wanted Senator Clinton on my show, she has spent a lot more time thinking about this problem than Obama has or than Senator [John] McCain has. “

     However, Cramer was less sold on Clinton’s proposed solution.

     “But she wants a virtual banking holiday, the 90-day moratorium,” Cramer added. “That doesn't do it.”

     Cramer’s claim housing depreciation is the only problem with the U.S. economy is curious. During his February 27 “Mad Money” interview with Clinton, he questioned her push for government-mandated corn-based ethanol – saying that was causing the U.S. to “burn food in this country” and that was contributing to half the inflation problem in the U.S. economy.