Do you think the federal government guaranteeing $29 billion in a loans for JP Morgan Chase to take over Bear Stearns is a good idea?
It really doesn't matter what you think, according to CNBC's Jim Cramer. Cramer defended the move by the Fed from any potential public scrutiny on CNBC's March 24 "Squawk on the Street."
"The American public don't know jack," Cramer said in response to a question from CNBC correspondent Michelle Caruso Cabrera about justifying the move to the American public. "They're just glad they're just not going to lose their job. I mean, this thing was so out of control. Everybody on Wall Street thought they were going to lose their jobs 10 days ago. We're thrilled."
Cramer claimed that 10 days ago everyone on Wall Street was worried about losing their jobs. But just 13 days ago, on March 11, Cramer said on his "Mad Money" show that Bear Stearns was not in trouble.
That proved to be incorrect on March 17 when it was announced JP Morgan Chase (NYSE:JPM) was going to take over Bear Stearns (NYSE: BSC) for $2 a share. On March 24, JP Morgan Chase revised its offer to $10 a share.
Cramer also admitted on CNN's March 23 "Reliable Sources" that his March 11 assertion that Bear Stearns wasn't in trouble was wrong.