Note: I, like others, want to believe in a bottom, but either way I am inclined to buy any selloff until we get overbought, and we are very far away from that.

1. The Bear (BSC - commentary - Cramer's Take) transaction really did matter. It showed you there is a plan -- a harsh plan -- that wipes out lots of equity. (Bear's stock acts as if there is a higher bid, but what I think might happen is that JPM will just pay a little more -- maybe $8.50, which is a billion dollars -- a pittance given the gains in the common stock.)
2. Now we know you don't need to pull your money out of the firm you are at. The JPM deal protected all clients of Bear. This -- despite the endless catcalls I am getting, including now from Jon Stewart - is the point I was trying to make.

   Before the plan this weekend, it PAID to take your money out of a troubled broker because it was entirely possible that you would be frozen and maybe go belly-up. Now you don't have to worry.

   THIS IS MAJOR. It means that a Lehman (LEH - commentary - Cramer's Take) doesn't have to worry about a run and you don't have to worry about a run. Tough to break the bank given that.

3. The Fed is more ahead than before; given that, it can cut any amount and be OK. Fifty basis points means things aren't as bad as you think and the dollar might rally. (See Bob Marcin on this for a good analysis.) One hundred basis points flushes a huge amount of money off the sidelines.