GO
Loading...

Stop Trading!

Friday, 22 Jun 2007 | 3:13 PM ET

How big is the hedge fund problem at Bear Stearns ? That was the question during today’s Stop Trading! segment.

Stop Trading!
Mad Money's Jim Cramer shares stock picks with CNBC's Erin Burnett



Cramer isn’t too worried. He would actually recommend buying BSC here, saying the fund bailout was expected and isn’t as bad as it’s being made out to be. While the two funds in question at Bear were levered to subprime mortgages, Cramer said their apparent collapse is a “liquidity issue, not a credit issue.”

Anyone who goes out and sells the brokers on this news is an “idiot,” Cramer said. Eventually, another one of these toxic funds in a different bank will rear its ugly head again, but it shouldn’t be cause for panic, he said.


Questions? Comments? madcap@cnbc.com

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.