Jim Cramer's Wall Street Confidential Feb. 13th
The Vs and the Dopeys; IndyMac, Washington Mutual (WM), Citigroup (C)
Cramer says the current optimism in the market is due to two groups, the Vs who believe in a quick and complete recovery and the Dopeys who feel that nothing is wrong in the first place. The convergence of these two groups is bringing the stocks up, said Cramer. However, Cramer does not identify with these camps; 'I need to see that all numbers are weak' since the fed is really dense and unsophisticated and will not make more cuts unless it is obvious there is a recession. The Fed is very reactive said Cramer and will use the bullish January retail sales as ammunition to do nothing. The purpose of cuts is not to bail out the economy, but to help IndyMac, Washington Mutual and Citigroup stay afloat, he added. The issue is not fundamentals, said Cramer, but credit risk and a bunch of institutions that are overextended.
Cramer says the current optimism in the market is due to two groups, the Vs who believe in a quick and complete recovery and the Dopeys who feel that nothing is wrong in the first place. The convergence of these two groups is bringing the stocks up, said Cramer. However, Cramer does not identify with these camps; 'I need to see that all numbers are weak' since the fed is really dense and unsophisticated and will not make more cuts unless it is obvious there is a recession. The Fed is very reactive said Cramer and will use the bullish January retail sales as ammunition to do nothing. The purpose of cuts is not to bail out the economy, but to help IndyMac, Washington Mutual and Citigroup stay afloat, he added. The issue is not fundamentals, said Cramer, but credit risk and a bunch of institutions that are overextended.
Labels: C, Jim Cramer, Wall Street Confidential, WM
posted by Stock Administrator @ 9:10 AM
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