The shock and awe of the financial market meltdown is just beginning according to CNBC star Jim Cramer.
Cramer on CNBC's Sept. 29 "Mad Money" cautioned viewers about the current market. His advice - do nothing because there's more pain to come if no rescue plan makes it out of Congress. As he put it: "sit on your hands."
"Only those stocks that are sure enough to pull the trigger on until we get to Dow 8,200 ... I said if the plan failed - only those you should be looking at - looking at," Cramer said. "Today's 777-point drop was just the beginning. Now is not the time to put your money at risk, it's the time to protect your nest egg."
Cramer recommended only stocks of companies that didn't need to borrow money in an environment with tough credit and sold products that would still be in demand during a bad economy - a very narrow spectrum of stocks. Otherwise, he told viewers to put their money in FDIC-insured banking accounts.
"You will get through this OK," Cramer said. "You'll lose money, but you'll get through it OK."
The "Mad Money" host blasted political leaders for sticking to their ideologies and policy makers, specifically Federal Reserve Chairman Ben Bernanke, for worrying about inflation in a deflationary environment. He referenced his infamous Aug. 3, 2007 meltdown blasting Bernanke for not cutting rates at a time when no one but he saw the banking collapses coming.
"It didn't matter because your political leaders believed the fundamentals were sound and told us day after day after day about that," Cramer. "Your financial leaders said the fight was against inflation, not deflation. We got the worst deflationary spiral since 1932. That's what happens when your house loses a third or half its value."