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 - Cramer on NEW - Stock Picks), NovaStar (NFI Quote - Cramer on NFI - Stock Picks) 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 - Cramer on SKS - Stock Picks) and J.C. Penney (JCP Quote - Cramer on JCP - Stock Picks), saying the consumer remains robust even though "no one has any faith" on Wall Street.