Jim Cramer's Wall Street Confidential, 12/6/07: Clarity on Home Equity

Recap of Jim Cramer’s comments on Wall Street Confidential, Thursday December 6. Click on a stock ticker for more analysis:

Washington Mutual (WM), Fremont General (FMT), Citigroup (C), Wells Fargo (WFC), E*Trade (ETFC) <

p> Cramer was pleased that now investors have more clarity about bad collateralized debt obligations, and now know that any loans issued and purchased by Fremont General (FMT), Novastar, New Century Financial, American Home Mortgage, and Washington Mutual (WM) are bad. The bad home equity issued between 2005 and 2007 might have been purchased as E*Trade, Wells Fargo and Citigroup.

"You have to take charge and get them off your books very quickly," Cramer warned. "We got this at Wells Fargo and that's great."

"We're finally getting clarity," he said. "We know that loans that were purchased from these clowns can't be owned. But it also means that we can purchase pieces of paper that may have been from 2001 to 2004 and 2007 paper beginning in July is safe, too."

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