Cramer on BloggingStocks: The good news from emergency gas taxes

With gasoline prices plummeting, I see that every major state has enacted some form of an emergency gas tax to help fill the diminishing coffers and patch up gaping holes in budgets. It may be one of those rare bits of good news stemming from the radical deflation of commodities. I am surprised that California doesn't have one, and I figure that New Jersey, one of the states with horrible finances (perhaps among the worst, although not rivaling California or Michigan), will put one in place shortly.

I think we continually underestimate the impact of still lower gasoline prices on a host of industries. Ford (NYSE: F) (Cramer's Take) could get a windfall because it still has a big line of heavy duty gas guzzlers that are immensely popular. General Motors (NYSE: GM) (Cramer's Take) is a hard call because of its ownership structure, although I am sure it will pop with the GMAC deal. I'd sell it.

If United Parcel Service (NYSE:UPS) (Cramer's Take) had any traffic, it has a huge fuel surcharge that it can slowly diminish to help the margins. YRC Worldwide (NASDAQ: YRCW) (Cramer's Take) had a great one, but I think that company is now a goner. Obviously, I have already discussed the retail benefit, but it looks like that didn't matter much.


If we could get strapped states less strapped and if we could get stimulus going, we might have a chance to avert the longest slowdown we have had in 70 years. Gasoline's a good prop, so are government borrowings, so are lower mortgages.

Unfortunately, unless we make every institution a bank, we are not going to get the credit we so badly need flowing again.

At the time of publication, Cramer had no positions in the stocks mentioned.


RELATED LINKS:

GMAC Cleared to Become Bank


Oil Prices Hovering Above $36/Barrel



Jim Cramer is co-founder and chairman of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO.
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