GO
Loading...

Cramer: Credit is Stabilizing

Wednesday, 15 Jul 2009 | 3:07 PM ET

In Wednesday’s Stop Trading! Cramer took to task the recent upward activity for credit card issuers, resulting on recent positive data on delinquencies and better than expected news from individual companies. Is it possible that there are really “green shoots” in the credit card industry?

After American Express CEO Ken Chenault’s comments last week that there are “signs that potentially could lead to green shoots,” Cramer, along with many on the street are excited.

Stop Trading, Listen to Cramer!
Mad Money host Jim Cramer shares his stock picks with CNBC's Erin Burnett.

With companies like Capital One doing better than expected and American Express receiving an upgrade to “Buy” from Jeffries, Cramer points out that credit seems to be improving ahead of unemployment, which is not what was expected. In short, Cramer says, “Ken Chenault gave us our green shoot” and recommends credit card names like Capital One and American Express.

"I would not buy these names if credit weren’t stabilizing," Cramer said, "because credit is my fear, not unemployment. Credit is stabilizing. That changes the story from being one where I’m nervous and worried to one where I say ‘How much upside?' "

For more of what’s on Cramer's mind, including why he thinks it could be the beginning of the end for the ratings agencies, why Fedex could be the green shoot in the transports by breaking a key level, check out the video!



Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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

  Price   Change %Change
ALXN
---
COF
---
FDX
---

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • 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.