Stop Trading!

How big is the hedge fund problem at Bear Stearns ? That was the question during today’s Stop Trading! segment.

Cramer isn’t too worried. He would actually recommend buying BSC here, saying the fund bailout was expected and isn’t as bad as it’s being made out to be. While the two funds in question at Bear were levered to subprime mortgages, Cramer said their apparent collapse is a “liquidity issue, not a credit issue.”

Anyone who goes out and sells the brokers on this news is an “idiot,” Cramer said. Eventually, another one of these toxic funds in a different bank will rear its ugly head again, but it shouldn’t be cause for panic, he said.

Questions? Comments?