Will the Banks Rebound? Cramer's Mad Money (5/30/08)

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Friday May 30. Click on a stock ticker for more analysis.

Toll Brothers (TOL), Hovanian Enterprises (HOV), Citigroup (C), Wells Fargo (WFC), Merrill Lynch (MER), Lehman Brothers (LEH), American International Group (AIG), Washington Mutual (WM), Wachovia (WB), Bank of America (BAC)

Cramer told viewers that a return by the banks could happen next week which could set off a market-wide rally and take us all a lot higher. It all depends on two important factors, Cramer said: housing and unemployment. Falling home values and weak employment numbers have killed the banks. Earnings from Toll Brothers and Hovnanian Enterprises early next week and Friday's job report could change that. If these two homebuilders show at least some stabilization, the mortgage-backed securities could also regain pricing strength, and they have been at the center of the credit crisis.

The possibility for a bottom in housing should result in a bottom for banks. Cramer said that would take a lot of pressure off companies like Citigroup, Wells Fargo, Merrill Lynch and Lehman Brothers. A decent jobs number will just add to the good news, taking the banks, and the rest of the market, even higher. If oil drops to a decent level and the usual end-of-month buying takes place, it will be all the better for investors.

Cramer said poor numbers from homebuilders and a bad jobs report would be horrible for financials. American International Group, Washington Mutual, Wachovia and Bank of America could drop to new multiyear lows if this were to happen. But Cramer said he feels positive about the outcome overall. Investors should not do anything until Friday. If the stars align as Cramer expects, you have your green light. If not, stay conservative.

[Editor’s Note: The remainder of Cramer’s Mad Money program on Friday was a re-broadcastof a previous show.]

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Comments

[User 201843]

Good luck. Stand aside for now...

[PCScipio]

Does Seeking Alpha have some relationship with Cramer? I thought this was a serious website? His TV performances seem to get a lot of play here.

[The RealExpert]

Seeking Alpha is just another site that tries to get as big of an audience as possible. You see, they want to ride the Cramer bandwagon because they want that Cramer audience because they don't really have enough valuable content to go at it on their own. Its the typical follower mentality.

They could care less about quality. Look at their ads - cheesy. How can you take any site seriously that reports Cramer's picks? This is why SA continues to lose real expert submitters.

[muley101]

Yeah, about 9 months ago Cramer said "It's time to ring the register on oil". So I did. Thanks Cramer.

[CES]

Cramer doesn't win 100% of the time-nobody does. You're supposed to use your own judgement when you buy and sell. If you don't you loose.

[Barb]

Don't knock a good site. I enjoy this site, no profanity like Yahoo and others. It is professional and in good taste. If Cramer is mentioned so what? Ignore that post if you don't care for him.

On Jun 02 10:50 AM The Real Expert wrote:

> Seeking Alpha is just another site that tries to get as big of an
> audience as possible. You see, they want to ride the Cramer bandwagon
> because they want that Cramer audience because they don't really
> have enough valuable content to go at it on their own. Its the typical
> follower mentality.
>
> They could care less about quality. Look at their ads - cheesy. How
> can you take any site seriously that reports Cramer's picks? This
> is why SA continues to lose real expert submitters.

[An Investor]

THE REAL EXPERT ... Obviously you hold yourself in high regard! Maybe you should consider retaining a CFP to assist you in your decisions. Then you would have the advice of A REAL EXPERT. If you are unable to sift through the cornucopia of information available today, and make your own decisions without requiring rubber panties, then stay out of the market.

An Investor (A Very Old and wise Investor)

[whenthemusicstops]

Lots of 'investors' out there these days...but even more 'gamblers'. You've got to know when to hold em...no when fold em...know when to walk away... and....

[getjdb]

So just who are the experts? Far as I can tell Cramer is pretty good.
A CFP? You must be kidding. Most of them are drop out life insurance salesmen or other misc. losers.
Can anyone name just a few "experts" worth following?

[jdlech]

There's players on Motley Fools CAPS that admittedly play only 1 1/2 hours on the weekend scoring better than Cramer. What does that tell you? Follow your own drumbeat. As for this site, I find it no better - and no worse than the hundreds of other sites that publish hype and doom for advertising dollars. And I find nearly everything I read is hype and doom; even the so called 'news'.
getjdb, you should be the only expert you consider worth following. Buffet, Heebner, et. al. should be considered mentors and fonts of advice and wisdom. But the only person who has your best interest in mind, however, is always going to be you.

[bill d]

LMAO - you guys that keep whining about Cramer, Davis, Cheng, Shedlock, et al remind me of the guy hitting hmself with a hammer -
why do you do it ??? Cause it feels so good when I stop.
Obviously you are masochists - Just stop reading them !!!!

[The RealExpert]

"THE REAL EXPERT ... Obviously you hold yourself in high regard! Maybe you should consider retaining a CFP to assist you in your decisions. Then you would have the advice of A REAL EXPERT. If you are unable to sift through the cornucopia of information available today, and make your own decisions without requiring rubber panties, then stay out of the market."

Lol that tells me you are a complete idiot. CFPs are nowhere near experts. They are clueless! All they do is charge money for telling you to diversify. How do I know? I completed all educational requirements for the CFP certification and after successfully completely the useless courses, I refused to waste anymore money to take the exam. I did not want to be associated with such a scam designation. What people need more than anything are people who know how to navigate the markets. When nearly everyone missed the real estate dump, how can you trust anyone? Seek out those who knew it would happen. Theyare the only ones who have an idea what the future holds. Cramer missed it all just like the other morons.

To the rest of you naive kids, I do not watch or read anything Cramer talks about. Simply by following this moron you are showing you are lost.

getjdb, you are exactly right about CFPs. I can name a few experts for you to follow:

Jim Rogers
George Soros
Me - feel free to ask me any questions.

An Investor (A Very Old and wise Investor)

[The RealExpert]

User 197255 of course you enjoy this site. You read yahoo stock message boards! lol. That tells me you are lost. This site caters to guys like you and that is experts don't stick around here long. Once they realize that 80% of the readers are complete idiots they bail. Good luck Cramer boy hahahaha.

[x6132003]

Well, do you think that LEH will be a good buy at any price, lets say 20 or 18 per share? They are raising capital ... they have been very good performers in the past ... and it seems that they will survive ... but how small will they become and how much will the stock be worth? ... your estimate please and the "why's" behind your thinking.

Thanks in advance,

Vince


On Jun 09 04:35 PM The Real Expert wrote:

> "THE REAL EXPERT ... Obviously you hold yourself in high regard!
> Maybe you should consider retaining a CFP to assist you in your decisions.
> Then you would have the advice of A REAL EXPERT. If you are unable
> to sift through the cornucopia of information available today, and
> make your own decisions without requiring rubber panties, then stay
> out of the market."
>
> Lol that tells me you are a complete idiot. CFPs are nowhere near
> experts. They are clueless! All they do is charge money for telling
> you to diversify. How do I know? I completed all educational requirements
> for the CFP certification and after successfully completely the useless
> courses, I refused to waste anymore money to take the exam. I did
> not want to be associated with such a scam designation. What people
> need more than anything are people who know how to navigate the markets.
> When nearly everyone missed the real estate dump, how can you trust
> anyone? Seek out those who knew it would happen. Theyare the only
> ones who have an idea what the future holds. Cramer missed it all
> just like the other morons.
>
> To the rest of you naive kids, I do not watch or read anything Cramer
> talks about. Simply by following this moron you are showing you are
> lost.
>
> getjdb, you are exactly right about CFPs. I can name a few experts
> for you to follow:
>
> Jim Rogers
> George Soros
> Me - feel free to ask me any questions.
>
> An Investor (A Very Old and wise Investor)