Last week, Cramer set up the Mad Money Mortgage Madness Index to measure the three crisis points in the market right now: banks, brokers and homebuilders. Home Gamers that bought those stocks would have been up 11%.
Until today’s 387-point drop in the Dow, that is.
And so it goes: Bulls make money, bears make money, hogs get slaughtered.
Anyone who didn’t take profits after jumping 11% in a week probably deserves the pain today. Any gains made will be given back, so investors might as well sell out of these stocks while they can.
Here are the companies that need to be sold, according to Cramer: MGIC Investment, Countrywide Financial, Bear Stearns, KB Homes, Centex, Citigroup, Goldman Sachs, Blackstone, Washington Mutual, MBIA, Thornburg Mortgage and Beazer Homes.
“Greed is not good,” Cramer said. “The market makes you pay for it, which is exactly what happened to the people still in the banks, the brokers and the homebuilders today.”
Questions for Cramer?
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