Recap of Jim Cramer's comments on Stop Trading! Tuesday September 23.
The failure by Congress to pass Treasury Secretary Henry Paulson’s bailout plan could send the U.S. into a financial Stone Age, said Cramer.
Retail in particular would take a big hit. Since Lehman Brothers filed for bankruptcy and AIG needed an injection of capital from the government there’s been a “complete freeze” in spending, Cramer said. Ralph Lauren, Nordstrom, Gamestop and Philips-Van Heusen are “very vulnerable.” Shoppers may still visit stores like Best Buy and Circuit City but they’re buying the cheaper versions of the products they want. But there is at least one opportunity in the space, he said. "It's all Wal-Mart. Wal-Mart could end up killing everyone." Consumers are trading down to more affordable outlets. Wal-Mart is the "ultimate stock," he said. "There's really no other retailer to own other than Wal-Mart.” Cramer called Wal-Mart a “gigantic, gigantic buy…because people just feel very poor.” Even if Paulson’s plan passes, Cramer said, September has been “the worst retail month in memory,” so these companies are hurting.
In oil and gas, Cramer favors Chesapeake Energy and Nabors, the latter because, despite a bad quarter, hasn’t gone up in tandem with the price of oil.
Seeking Alpha publishes a summary of Jim Cramer's stock picks every day including: Mad Money Recap, Lightning Round and Stop Trading!
Get Cramer's Picks by e-mail -- it's free and takes only a few seconds to sign up.
Seeking Alpha is not affiliated with Jim Cramer, CNBC or TheStreet.com