Appearing on CNBC's "Mad Money w/Jim Cramer" today, Sen. Hillary Clinton, a Democratic presidential candidate, called for a 90-day moratorium on foreclosures and a freeze on adjustable-rate mortgages. Further, she agreed with Cramer that the Federal Housing Authority should offer 30-year fixed mortgages for those who are unable to refinance their homes.
"If we don't stop the bleeding in the home market," she said, "I think we're just looking at a longer and deeper economic recession over the longer term. We need bolder action and we need it now."
With ethanol such a big part of the early campaign, as both the Democratic and Republican candidates fighting for votes in Iowa, Cramer pressed Sen. Clinton on the feasibility of the corn-based fuel as alternative to foreign oil. The way she looks at it, the U.S. is in a "transition period" as we move toward cellulosic ethanol and find ways to incentivize wind and solar power. What's important is "to get our plow in the ground," she said, so we can find ways to rid ourselves of dependence carbon-based fuels.
Cramer, being a former hedge manager, also asked Sen. Clinton about her position on dividend and capital gains taxes. The former First Lady said we might see "some increase" but "nothing significant." She's more focused on returning the tax rate for Americans making over $250,000 to its 1990s-level rate as a way to raise money to fund universal healthcare. She called the move "affordable" and "understandable," adding that it would bring down costs "and get us off this double-digit increase in healthcare costs, which we just can't afford."