Federal Reserve Chairman Ben Bernanke warned Congress on Tuesday of the grave consequences if lawmakers fail to pass the $700 billion plan to bail out the finance industry, such as higher unemployment and increased home foreclosures.

Bernanke reported to the Senate Banking Committee that inaction could leave ordinary businesses unable to borrow the money they need to expand and hire additional employees, while consumers could find themselves unable to finance big-ticket purchases such as cars and homes. Bernanke also stated that a recession would be inevitable without passage of the plan.

Stocks were all over the place on Tuesday, with big swings in both directions.

AIG (AIG), Microsoft (MSFT) and Intel (INTC) led the winners, while Citigroup (C), General Electric (GE) and Wachovia (WB) all struggled.

With this in mind, we thought we'd take a look some of the top-searched stocks on TheStreet.com and see what Jim Cramer's had to say about them.

These stocks could be in the news for a number of reasons. Some require immediate attention while others may not. Regardless, it never hurts to hear what Cramer (or any of the other professional investors on the site) has to say about them. The key is to gather as much information as you can in order to make the most informed investment decisions you can.

Pfizer (PFE), EMC (EMC) and Apple (AAPL) all got hit today, but we're going find out what Cramer's had to say about Goldman Sachs (GS).

In a recent post to his RealMoney blog, Cramer wrote:


"I have long been enamored of the bank stocks when they don't have a lot of bad loans and their book values are solid. I have always felt that if you can get a bank for less than twice book, then you have an opportunity -- if the book is clean -- to make some great money.

If you can snag one that is less than 1.5 times book, well, frankly that's been impossible, unless the bank has got a book stuffed with good will. You just don't find one.

Now, what would you say if you could buy the best bank for about 1.25 times book, something I have not seen since the great bank consolidation of the early 1980s? You didn't even get banks that cheap in the 1990 situation, because the book values were not clean and the losses those banks had taken or were about to take were just too dangerous to swallow. Anyone who remembers Cal Fed and GlenFed knows exactly what I am talking about.

Any bank that is bigger than that bank should buy it.

Right now, right here, below $120, that's Goldman Sachs, at $50 billion with a clean book and a great business. That means it is totally additive and just a fantastic franchise worldwide, and you could own it for that little amount of money.

Here's the way to look at it: If I were Citigroup's CEO, I would bid $135 a share for Goldman right now, about a 35% premium to book. It would be the greatest steal, because you could marry the huge deposits with the investment banking and M&A. And here's one, you would get management, too.

That's why I am urging you to forget the endless articles about how Goldman Sachs can't make big money anymore because of the commercial bank rules.

There is simply no way, now that the prime brokerage business can't bring this company down by taking all of their money out right now, which is what almost caused the bank's failure last week.

With 11% capital, with a book that has been scrubbed clean after a tough quarter and with the best trading and investing franchise in the world, Goldman's too small right now to be independent. It will be bought if the plan doesn't pass; if the plan passes, look for Goldman to be the biggest buyer of deposits out there."

For more of Cramer's take on stocks such as American Express (AXP) and National City (NCC), check out the Cramer's Take portfolio here.

(Editor's note: At the time of publication and/or original publication of his posts and shows, Cramer owned Goldman Sachs and General Electric for his Action Alerts PLUS charitable trust.)

Posted on Sept. 23, 2008