Recap of Jim Cramer’s comments on Wall Street Confidential, Monday July 30. Click on a stock ticker for more analysis:
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No-Go for Bonuses
While the mortgage crisis has been a Main Street issue for six months, it has now become a Wall Street issue; "The bonus pool is completely in doubt now," Cramer said. "If you had done something really great in mortgages, I think now you're going to get laid off. The table of employment in mortgages and private equity is just way too high." The recent aggressive hiring in private equity and mortgages is going to be reversed through massive downsizing, Cramer predicted, and since those two divisions were responsible major earnings, these financial stocks are "not going to be cheap." He added that banks, "the ones with very big deposit bases -- I think that they will be purchased after they go down lower," and adds Barclays would be wiser to consider buying Countrywide, Washington Mutual, Bank of America, or evenWachovia rather than ABN Amro. "I think anything's possible as these stocks continue to go down," Cramer said. "We have a very weak dollar, so these companies are being put on double sale, and I really genuinely believe that they will not be independent at this pace."
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