Cramer on Tuesday announced the new rally in banks. Today he told viewers why it’s happening.
Don’t expect similar positive reports from the media, the Mad Money host said. They’re too busy focusing on supposed commercial and residential real estate foreclosures, a Fed they say is bent on raising interest rates and their prediction that the financial are ready for another leg down. But Cramer has 10 reasons why the banks are back:
First, the market has decided that the last of the credit losses are behind us, and it’s the market that sets prices – not the media. Nothing matters more for the banks than a peak in these write-offs, Cramer said, whether it’s JPMorgan Chase , Huntington Bancshares, Wells Fargo or Zions, and that peak has arrived.
Second, Washington has become less of a factor. Hen Senators are willing to turn a blind eye to even the worst payday lendors, as The New York Times reported, then that means financial reform – real financial reform – is all but dead, Cramer said.
Third, Citigroup CEO Vikram Pandit’s congressional testimony last week also helped to eliminate Washington headline risk, Cramer said. Pandit’s gracious “thanks for the help” left investigators with no comeback.