Stop Trading!: Banks Should Follow Lehman's Lead

Lehman Brothers foiled the shorts with a $4 billion offering Monday, helping to spark a rally in the Dow a day later, and now Cramer wants other banks to follow suit.

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.”

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer

    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.

Mad Money Moments

Cramer's New Book