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Cramer on BloggingStocks: Boneheaded Fed means more pain ahead

Jim Cramer on BloggingStocks TheStreet.com's Jim Cramer says that now, teetering financials and homebuilders will topple and safety plays will rule. Ouch.

Couple of tough days ahead. We were overbought going into this Fed decision; now we will have to pay for it, and pay for it big. We have to lose a lot that we gained, expecting that the Fed would work hand-in-hand with the Treasury Department to get us out of this jam.

But that's not going to happen now. You can see what will happen. They will kill the banks again. The fundraising that was going on will be halted. We will get some failures. The homebuilder credit lines? Some will not be extended.

The financials that are teetering? They get pushed.

Then the Pepsi (NYSE: PEP) (Cramer's Take)-Coke (NYSE: KO) (Cramer's Take) rally will ensue, with the Medcos (NYSE: MHS) (Cramer's Take) and the CVSes (NYSE: CVS) (Cramer's Take) and the Hologics (NASDAQ: HOLX) (Cramer's Take).

That comes about by Monday.

And the pain will be palpable.

All of it is easily avoided. I am sure there are people who don't care about the stock market as a barometer of what just occurred.

That's great to take that view. But in the end, a quarter-point of interest rate cut more and we could have successfully liquefied the balance sheets and raised the money so much easier.

Now it is going to be another round of pain and woe.

For what? Why?

Let me know if you can figure it out.

I can't.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long CVS Caremark and Hologic.

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Last updated: September 05, 2008: 11:15 PM

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