Video: Jim Cramer from Mad Money Says PULL OUT of Stock Markets

President Bush’s 700 billion bailout plan is not working because few have confidence the plan help and banks are not increasing lending. Furthermore, the bailout plan has yet to hit early benchmarks Paulson outlined during Capitol Hill testimony, as evidenced by additional moves from the Bush administration and Treasury Department to reinforce current economic policy “with substantial force on a number of fronts.”

Dow Falls Below 10,000 for the First Time in Years.

“There is simply too much debt for world governing bodies to contain,” noted the committee assigned to monitor high level investment lending.

Financial guru, Jim Cramer, warns that investments could lose 20 percent of their value as he strongly urges investors to pull out.

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In what Curry, the host of NBC’s Today called a “dramatic statement,” Cramer emphatically urged any investor to pull their dough out.

“I thought about this all weekend,” Cramer told Curry. “I do not want to say these things on TV.

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Video - Oct. 6: TODAY’s Ann Curry talks to CNBC’s Jim Cramer, who advises pulling out the stock market.

“I don’t care where stocks have been, I care where they’re going, and I don’t want people to get hurt in the market,” Cramer told Curry. “I’m worried about unemployment, I’m worried about purchases that you may need. I can’t have you at risk in the stock market.”

Still, those with the assets — and the stomach — to ride out the stock market’s ups and down over a five-year period might be best served by holding their nose and holding onto their stocks.

“I think what you have to do, if you can withstand it, is just ride it out,” Cramer said.

Cramer’s gloomy scenario came from calculating individual Dow stocks and estimating how far they might yet fall, he told Curry. And companies’ third-quarter earning reports, due this week, aren’t going to be music to investors’ ears.

“I think the previous quarter, the one we’re now hearing from, was a terrible quarter — but it will look good versus the coming quarter,” Cramer warned.

$8,000 for Every Family in America

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In remarks made at a National Association for Business Economics conference Sunday, former Treasury Secretary, Lawrence Summers said it’s “overwhelmingly likely” that the current period ultimately will be deemed a recession. “What I think is a certainty is that it will feel like a recession to virtually everyone.”

Mr. Summers said he’d be “pleasantly surprised” if the unemployment rate doesn’t exceed 7.5% at some point during the slowdown. At 2.5 percentage points above the normal unemployment rate, a conservative Okun’s Law calculation suggests a 5% loss in the nation’s economic output. That, he explained, translates into a $750 billion annualized shortfall in gross domestic product, or a loss on average of $8,000 for every family of four.

Update: 11:19 AM Eastern

• Markets in panic, circuit breakers to halt market triggered in Brazil …developing.
• Experts say homeowners will not feel any help on foreclosure.
• London’s market suffers sharpest fall since 1987, worse to come tomorrow as more European Banks expected to fall after closing. Europe does not have a central bank and ill prepared to manage crisis and may trigger a domino effect across the world as this debt enters default status.
• Disintegration of global finance within days…
• Asian markets free fall…
• Emergency Meeting of Prime Ministers in Europe as Markets are Melting Down…
• Ebay Slashes 1,000 Jobs
• Chavez Using poor economy to increase his sway and decrease U.S. clout

Update: 11:39 AM Eastern

• European Union officials not cooperating…
• Analysts who have been figuratively pacing the halls of Congress waiting for the Paulson mortgage-rescue plan to be born are clearly worried about whether the program will grow up to be a success.

Update: 11:49 AM Eastern

• As markets crash around the world, President Bush makes a statement…

Update: 12:01 PM Eastern

• Worldwide Crash…
  

Update: 1:18 PM Eastern

• Rising unemployment, consumer spending drop spell deeper trouble ahead
• All out panic…
  
• Black Monday…
• Pope says world financial system built on sand…
• No end in sight…

Update: 1:48 PM Eastern

• First California, now Massachusetts Looking into a Federal Loan…
• 9 - Straight Months of Job Losses…
• Bailout Announced for Huge German Lender…
• 60% of Americans Say “Depression” Likely. Will Not Spend…
• WORST CASE SCENARIO APPROACHING RAPIDLY…

Update: 2:00 PM Eastern

• DOW Hovers at 600 Points Down…
• Iceland Suspends Trading…
• The UK Stock Market Suffers it’s Biggest Loss in History…

Update: 2:12 PM Eastern - Now nations are at risk, up first: Pakistan.

• Pakistan facing bankruptcy - Pakistan’s foreign exchange reserves are so low that the country can only afford one month of imports and faces possible bankruptcy

Update: 2:20 PM Eastern

• Banks are Hoarding Cash, Not Giving Loans Despite Flawed Bailout Package…
• Iceland Suspends Trading…
• Down Drops 700…
• Dow Back to 1999 Levels…
• Financial Markets in Paris Crumble…
  • The pan-European Stoxx 600 index closed down 7.6% at 241.60.
  • The German DAX 30 index ended down 7.1% to 5387.01.
  • The French CAC-40 index dropped 9% to 3711.98.
  • The U.K. FTSE 100 index closed down 7.9% to 4589.19.
  • The Russian RTS index slumped 19.1% to 866.39 before trading was suspended.
• Record Lows in Mexico…
• Wordwide Wreckage…

Update: 2:52 PM Eastern - The Bailouts Has Failed

• DOW PLUNGES RECORD 782…
• Emergency Meeting at the Federal Reserve with Paulson and Bernanke Calling for Broader Action…
  
• Brazil’s Market Sinks to Lowest in a Decade…
• Emerging Market Stocks Fall Most Ever…
• Wachovia Bank was Near Failure…
• Google’s shares falls as earnings estimates weak and android phone software “dull”

Update: 2:55 PM Eastern - Nasdaq Falls