Cramer's 'Mad Money' Recap: Don't Panic!

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East Coast refineries that are able to process the lighter crude being produced by our oil shales can't do so because, again, there are no pipelines to move the crude east. Shipping might be a possibility, but an arcane law known as the Jones law prohibits crude from being transported on non-U.S. ships by non-U.S. crews. That's a big problem, said Cramer, as just about all tankers are made outside the U.S.

Just seven years ago the U.S. imported three million barrels a day of crude oil, noted Cramer, but today it exports one million barrels of refined petroleum a day. Why? Because prices are set on a global stage and it's more profitable to take U.S. gas and ship it elsewhere, especially given that -- you guessed it -- there are no pipelines to move refined gas to where it needs to be.

Cramer said all of these problems could be fixed with help from Washington, but without it things will continue to move at a snail's pace. Rail lines are being built to take the place of stalled pipelines, for example, but now additional tanker cars are needed. Using natural gas as a surface fuel would also help, said Cramer, but President Obama is unlikely to endorse natural gas anytime soon.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on the looming government sequestration -- the massive budget cuts -- that now is only days away. He said he's going with what the defense stocks are telling him, and that's that sequestration isn't all that bad.

Cramer said the real impact of sequestration is likely to be only $44 billion, not the $80 billion plus the scaremongers are pitching. With so many government programs in need of being shut down, wouldn't $44 billion be a good thing, he asked?

Cramer once again pitched the idea of requiring hedge funds to pay ordinary income taxes as one quick way to increase revenue at the U.S. Treasury. But, alas, the hedge fund lobby, like that of the defense industry, is too strong to allow cuts to be made.

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-- Written by Scott Rutt in Washington, D.C.

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