Mapping a Countrywide Mile

Let's go right into the lion's den.

Do you, in light of the repackaging of Fremont General's (FMT - commentary - Cramer's Take) loans, buy Countrywide Financial (CFC - commentary - Cramer's Take) at 8 times earnings? What if its earnings are only slightly impaired by subprime mortrgages -- how bad can it be? Do you leg in? Do you consider how many people are short this alleged proxy for subprime?

We know that there were several suitors of this company at one point, and it was clear that Merrill (MER - commentary - Cramer's Take) wanted it. What if Fremont's ability to sell loans makes you believe that the shakeout is so far along and the margins on these loans are improving so fast -- a theory that Annaly (NLY - commentary - Cramer's Take), for the record, would disagree with -- that you need to take share right now?

It's a far-out idea, but just how far-out in light of the deal for Sallie Mae (SLM - commentary - Cramer's Take)? How far out after the collapse of 20 players in the group and the impairment of so many others?

How often have you been hurt by buying something with an 8-multiple?

Not that often.

At the time of publication, Cramer had no positions in stocks mentioned.

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