Wells Fargo needs to raise capital to offset its home equity exposure. Wachovia needs cash to cover its dividend. Washington Mutual, too, needs money. And the time to act is “right now,” Cramer said. He even urged Fannie Mae and Freddie Mac to take advantage of the short squeeze in their respective stocks to make an offering of their own. “Use the Dick Fuld playbook,” he said, referring to the Lehman CEO.
In other stock news, National City is ripe for a “takeunder” a la Bear Stearns , Cramer said. FedEx is “remarkable,” and J.C. Penney is up as well, calling the retailer’s move “the early cycle writ large.”
“Someone at some point better start believing in these rallies,” Cramer said, “because, boy, they are powerful.”
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