Pundits Get Bearish at the Worst Possible Time

Of course it is bad out there. No kidding. I just sat through an hour of "Squawk Box," and Joe Kernen and I chatted between breaks about the absurd nature of so many people coming on who are now bearish who had thought things were fine! People who say the worst is yet to come.

Yet I am watching tanker rates go up, Shanghai go up, housing prices with finally some hope to stabilize after the FHA takes the role of RTC, gasoline going to $3.50, the Fed not raising rates because inflation could abate ... and people are getting bearish? Need I remind people that just two weeks ago there were nervous depositors scared to keep their money in JPMorgan (JPM - commentary - Cramer's Take)?

The time to get bearish was last year. The time to be constructive is now. Troubled banks? They can raise money because the psychology has changed. Bankers can catch their breath and put in plans, as I think Wachovia (WB - commentary - Cramer's Take) will -- I really want to own that one if it would just pull back. Many companies have put through price increases just as raw costs could be falling, leading next year to be a gigantic profit machine.

And now people are negative.

I sit there and listen to jibber-jabber about credit spreads and bond markets failing and telltale signs of trouble that are allegedly not reflected in stocks, and all I can say is, "Did you see where Fannie (FNM - commentary - Cramer's Take) and Freddie (FRE - commentary - Cramer's Take) and Citi (C - commentary - Cramer's Take) and Wachovia and Wells Fargo (WFC - commentary - Cramer's Take) and Bank of America (BAC - commentary - Cramer's Take) and Lehman (LEH - commentary - Cramer's Take) -- why didn't Dick Fuld do what Bob Steel did? -- traded last week? Those reflected BANKRUPTCIES. Ford (F - commentary - Cramer's Take) and GM (GM - commentary - Cramer's Take)? Bankruptcies. The banking system? Collapse.

You don't get bearish after that. You get bullish.

For the last two weeks, we have had bull-bear readings with the bulls under 30, the lowest I can recall. We had the market the most oversold that I can recall just last week. These are not levels from which you get a snapback bear-market rally and then it is over. These are levels that launch new bull markets with new leadership and new names.

Even I am not that bullish, but at least I feel that I have a better case to be made than the bears I hear.

I am simply tuning them out. They are way too dangerous.

Random musings: I didn't get to ask the Dow (DOW - commentary - Cramer's Take) CEO, but if he has a $20 billion natural gas bill, is he a buyer or seller of nat gas here?

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

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