Europe’s debt crisis has boiled to the point that it’s now time for President Barack Obama or Federal Reserve Chairman Ben Bernanke to intervene, said Jim Cramer on CNBC’s “Mad Money.”
To Cramer, either Obama or Bernanke need to tell European policymakers that their “squabbling” and “indecision” is not just bringing down Europe’s economy , but the rest of the world’s economies, too. Cramer said Obama or Bernanke should tell European leaders that while Europe faces hard choices, the U.S. will help it make decisions. After all, Cramer thinks the “dithering” in Europe is hurting the confidence of American business leaders, as the U.S. added just 69,000 new jobs in May while the unemployment rate grew to 8.2 percent.
Specifically, Cramer said Obama or Bernanke should make European leaders a few offers. To start, Cramer said the U.S. Federal Reserve should offer the European Central Bank a credit line, but only if European leaders issue euro deposit insurance to banks. Such an action would help prevent money from leaving the weaker countries at such a fast rate, Cramer explained. Furthermore, the U.S. should offer to extend a credit line toward the creation of “Eurobonds” that buy the sovereign debt of countries that are trying to growth their economies despite calls for austerity.
Meanwhile, Cramer wants either Obama or Bernanke to give Chinese leaders a call, too. Given 20 percent of all China’s goods are sold in Europe, Cramer thinks it’s time the Chinese government “steps up the plate” and helps fund Europe’s turnaround.
After oil prices fell on Friday to their lowest since October 2011, Cramer wants President Obama to get the leaders of responsible OPEC nations on the phone. OPEC member countries made a lot of money off the run in oil that’s now ending, Cramer said, so these countries should help get Europe back on track, too.
If Obama or Bernanke don’t make these calls by Sunday, Cramer fears U.S. markets could continue to fall next week.
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