Things Aren't So Bad

The setup is pretty good here. We've got a mildly oversold market with lots of June money expected to come in as CDs roll over and people realize that the cash rates are so bad. We have no earnings news, which is good, given that unless you do a lot of business overseas without a lot of raw cost escalation (think everything from Emerson (EMR - commentary - Cramer's Take) to Heinz (HNZ - commentary - Cramer's Take)) or you transport or mine oil, minerals and agricultural goodies, you aren't doing all that well.

We have the possibility of some stability in energy, as $130 has been difficult to punch through, even though we have not been able to build any inventories yet despite all we hear about how people are driving less. And the expectations for the employment number are so weak that if we get any job creation we are going to begin to hear that maybe the economy is on the mend.

Again, that's considered antithetical given the sinking home price/escalating food and oil price one-two punch. But, as I said last week, there is a finite nature to the bad loans.

We've got plenty wrong. However, I would argue that we have always had plenty wrong. If anything, the amazing moment here is that there isn't more wrong and more difficulties. There are a number of banks on the 52-week-low list, but no one has failed other than Bear (BSC - commentary - Cramer's Take), and we are now getting a fuller picture of Bear falling under its own incredibly poorly managed weight. (The outrage here simply can't be strong enough.)

Can Downey (DSL - commentary - Cramer's Take) and IndyMac (IMB - commentary - Cramer's Take) bring us down? I don't think so. The Ohio banks? Not a chance. I don't want to buy Lehman (LEH - commentary - Cramer's Take), but the notion that it is really sickly -- deathbed sickly -- doesn't seem in the cards. It's just the crummy stock of an earnings-challenged company.

These aren't calamities.

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

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