Jim Cramer's Stop Trading! Buy Penney

The panic over subprime lenders is "overdone" and substantial fallout will be "contained to one or two ne'er-do-wells," Jim Cramer said Thursday on CNBC's "Stop Trading!" segment.

Cramer said it's possible we could still see a big player in the financial space take a big portfolio hit from the blowups in New Century (NEW Quote), NovaStar (NFI Quote) and other lenders to borrowers with poor credit histories. But he stressed that there has been a "rush to capital from this sector," which should mean that all but the unhealthiest players should survive and that there shouldn't be a risk of a huge problem in other financial companies.

Cramer is bullish on Saks (SKS Quote) and J.C. Penney (JCP Quote), saying the consumer remains robust even though "no one has any faith" on Wall Street.