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Cramer: Get Out of Italian Banks

Friday, 24 Jun 2011 | 3:25 PM ET

Cramer was incredulous Friday that anyone should be surprised that Moody’s Investors Service changed the outlook of 13 Italian banks to ‘negative’ from ‘stable.’

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“If you own those banks, if you own companies that have insurance on those banks, if you have money funds that have those banks, will you just stop being so brain dead and sell already?” Cramer said. “Why is everyone so surprised? What do you need to know about Europe?”

The change in outlook usually means a downgrade is likely in the next 12-18 months. Moody’s also threatened to cut the credit ratings of another 16 highly-rated Italian banks and two government-related financial institutions in the next few weeks, following a possible downgrade of Italy’s sovereign rating.

The “Mad Money” host also believes there will be more bad news for other European banks to come.

“Moody’s is not going to let up because they blew it last time and they’re under a lot of pressure because they blew it,” he said. “They are going to continue to downgrade and make negative comments.”

In other market news, Cramer said he believes the price of oil is going to continue going down, along with gasoline prices.

He said those who think the IEA’s release of 60 million barrels of oil from the strategic petroleum reserves of 28 nations isn’t going to help have it wrong.

“Again and again you are going to hear that it didn’t matter, but then you are going to look at the price [of gas],” he said, which he thinks is heading lower.

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