Heebner said this was part of a “continued pattern” coming out of Washington to provide liquidity and stimulate the economy, ever since Fed Chairman Ben Bernanke and then Treasury Secretary Henry Paulson recognized the severity of this financial crisis six months ago.
“I think it reinforces the idea that we’re going to see an upturn in the future,” Heebner said, “maybe a year from now, maybe longer, depending on circumstances.”
Cramer and Heebner largely agreed on which financials were the best right now. Heebner, while admitting that Goldman Sachs is doing well, favors Morgan Stanley .
“They’re probably going to be the leader,” he said.
Cramer is bullish on both Morgan and Goldman, calling MS the “premier brokerage in the world” and saying that the stock “could double from here.” Goldman’s, he thinks, could raise enough money in an equity offering to pay down its TARP loans, putting this consultancy bank in a much stronger position than its competitors.
Goldman “could roar” if that happened, Cramer said, adding that investors can’t include Morgan and Goldman with the rest of their troubled sector peers.
Cramer also likes Apple and Research in Motion, after reports from Verizon Communications and AT&T showed that iPhone and BlackBerry Storm sales have been strong. That’s bullish news given that consumers wouldn’t normally be spending so much during a slowdown. But Cramer said most of the market has been missing this trend because the focus is on the financials right now. But Wall Street should take notice because the action in AAPL and RIMM is leading a rally in tech that “has the capability of leading us somewhere.”
Watch the video for more from Cramer and Ken Heebner. Find out where Heebner’s fund is putting his money, what he thinks about the future of oil prices and get Cramer’s opinion on all this good bank/bad bank talk.
Cramer's charitable trust owns Goldman Sachs and Morgan Stanley.
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