The transports are down so much, Cramer said during Thursday’s Stop Trading!, both domestic and international trade “must have stopped to have these kinds of declines.”
FedEx , Norfolk Southern and CSX are all at 52-week lows. Cramer took it as a sign that whatever the government is doing, whether it’s the new mortgage program or the stimulus plan, “it’s not enough.”
Cramer looks to both the transports and banks as the market’s leaders, and without rallies in either there’s virtually no chance for a bottom.
Citigroup is now trading a less than a $1 a share, while Bank of America’s at $3.18, which means short sellers “are in control of banks,” Cramer said, “not the U.S. government.” Washington needs to be the leader here, but that’s not happening.
Treasury Secretary Geithner hasn’t yet offered a plan to solve the financial crisis, Cramer said, and that lack of clarity is causing “the destruction of the American banking system.”
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