Jim Cramer Blog

Today on "Stop Trading" Cramer highlighted the Goldman Sachs call that Japanese financial companies earnings estimates are 35-45% too low. He also proclaimed that his trust owns a bank in that sector, MTU. He said the stock has had a run but the it is nowhere near its high of the 1980s. Another factor affecting the markets today had to do with the sell-off of the 10-yr treasuries. When the price of bonds go down, the interest rate rises. This is a major reason why the homebuilders were down today. Cramer said that if home buyers can withstand the fact that natural gas rose 50%, they can deal with their interest payments rising incrementally. I completely agree with what he said. If you peer at interest rates from a birds eye view, they are not even close to their highs over the past 20 years. People want to own a home. Home sales will not slow until rates move drastically higher.