Oil has replaced housing as the scourge of the U.S. economy, Cramer said during his Tuesday appearance on Stop Trading!.
Housing can, and will eventually, rebound, he said. It’s completely within the realm of possibility that in a year or two people will be regretting not buying homes in some of the worst-hit Florida markets since prices have come down so substantially.
The solution to the oil problem, on the other hand, is not entirely clear. As for crude’s decline on Tuesday, Cramer chalked it up to an overbought market where the S&P oil futures just couldn’t “tolerate” such high prices. But the overall trend is still higher, he believes.
Cramer also said he’s amazed that Bank of America is going to add to its stake in China Construction Bank, considering its dividend worries, its troubling exposure to home equity loans and its deal to buy Countrywide . Where is the capital coming from? he asked. “It’s quizzical.”
He also briefly added that Apple and Mastercard are "the momentum plays of a lifetime."
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