Cramer: Housing Bill to Move Builders, Banks07/23/08 - 04:08 PM EDT BAC JPM KBH RYL TOL USB WB WFC WM Jim Cramer Click here to find out how MetLife can help you create a retirement strategy tailored to your unique needs
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The housing bill is a huge deal. I don't think people realize how big. Besides saving Fannie(FNM - Cramer's Take - Stockpickr) and Freddie(FRE - Cramer's Take - Stockpickr) through the big losses -- perhaps to the Promised Land where there will be stronger fees overwhelming charge-offs sometime in 2010? -- it will help eliminate the overhang of foreclosed homes. That's bullish for my two faves in a hated industry: KB Home(KBH - Cramer's Take - Stockpickr) and Toll Brothers(TOL - Cramer's Take - Stockpickr), the two best houses in a real crummy neighborhood. (I like Ryland(RYL - Cramer's Take - Stockpickr) too on this bill.)
But more important, the question, the bigger question, is, how much is in the bank stocks for this bill? We all know there has to be a price, a time, where these stocks are overinflated. We obviously aren't there yet, in part because even the worst of the banks, Washington Mutual(WM - Cramer's Take - Stockpickr), is passing muster today.
The move in the four fortresses, Bank of America(BAC - Cramer's Take - Stockpickr), JPMorgan Chase(JPM - Cramer's Take - Stockpickr), U.S. Bancorp(USB - Cramer's Take - Stockpickr) and Wells Fargo(WFC - Cramer's Take - Stockpickr), seems so overdone that I have to expect profit-taking -- maybe we will get it on any strength in oil -- but the money keeps flowing in to it.
Some of this move is the short-sell rules, some of it is the better-than-expected net interest margins coupled with the overwhelming charge-offs that in some
Unfrigginbelievable this douschebag. I swear this guy needs to be brought in the woodshed. We should actually thank him though, because he finds us idiots to sell our garbage too. Thx Cramer, thx for being our clown!