Jim Cramer Blog

Erin Burnett started the show discussing the Fed's new U.S economy survey with Diana Olick and Steve Liesman, both of CNBC. Diana says that the standards are tighter on consumer loans as well as residential. Stave adds that barriers have been created by the tighter credit and lending institutions. Mortgage delinquencies have drastically increased in the past quarter. The pace of homebuilding is low and is not expected to pick back up until, at best, well in to 2008. The DOW, Nasdaq and S&P have all shown improvements today. Bonds and Oil are down, stocks are at a high for the day; says Bob Pisani. Freddie Mac (FRE) and CITI Group are today's leaders in the financial sector. Exxon Mobil, Sunoco and Valero Energy are among the top five stocks in the energy sector. Next, Steve Burton of ING Global Real Estate Fund says we like companies with a conservative business model. Also mall stocks in Europe, Asia and the U.S. are considered good investments. Simon Property (SPG) is his top pick of the day. The next topic was Saudi Arabian oil reserves. Countless terror attack attempts have been foiled; by over 200 arrests being made on terror plot suspects. The attempt to infiltrate the infrastructure of Saudi reserves could be quite an issue, being that Saudi Arabia operates over one quarter of the reserves in the world. Next topic was the Chinese economy. Zachary Karabell of Fred Alger Management says there is no greater sign of investor panic in China, adding that their economy is an engine for growth. Shanghai Composite is seeing increases in the triple digits today. Very strong earnings growth is expected for any Chinese investments. Erin than talked about how private equity markets such as the Middle East are looking east for investments. They said they are trying to align themselves with interest allocaters to make some of these investments work. Colony Capital is currently one of the largest private equity investors. They currently have $26B in assets. They own office, hospitality, gaming, residential, and retail properties globally. Colony closed its largest acquisition this month by taking over Station Casinos for $8.8 B. Stop Trading with Jim Cramer was next. He says that he will be buying rather than selling within the financial sector.

Labels: Citigroup Inc., CNBC, Erin Burnett, EXXON MOBIL, FRE, ING, Jim Cramer, Jim Cramer's Stop Trading, SPG, Street Signs, street signs recap