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It's a fearful day in the markets, Cramer said during Monday's Stop Trading!.
He attributed a bulk of the problem to single-digit stocks. They're falling on a percentage basis that is just "ghastly" if you're a shareholder.
Cramer also rejected the idea of bottom-fishing in this market. Wells Fargo [WFC
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] and Washington Mutual [WM
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] might not even make it through this rough period, at least if the 1990 savings-and-loan crisis is an accurate model. In fact, Cramer urged investors to stay away until all the weak banks had gone under.
"We just lost the first one, IndyMac [IMB
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]," he said. "Give us the chance to lose some more."
Downey [DSL
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], BankUnited Financial [BKUNA
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] and FirstFed Financial [FED
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] all need to raise more capital or suffer the same fate as IndyMac, Cramer said.
Switching to the latest on Fannie Mae [FNM
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] and Freddie Mac [FRE
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], Cramer said homebuilders made sense as a trade now that home-buying is being encouraged. He expects the group to bottom ahead of the banks.
"I do really feel like we're getting close," Cramer said, but that bottom won't happen until a major merger takes place in the housing sector.
Lastly, Oceaneering International [OII
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], Schlumberger [SLB
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] and FMC Technologies [FTI
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] all are plays on President Bush's lifting of the ban on offshore oil drilling. Of course, Congress has to approve the measure before any drilling takes place.
CORRECTION: A previous version of this post listed Bank of New York (NYSE: BK) as one firm in need of raising capital, instead of BankUnited Financial. It was the author's mistake, not Cramer's.
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