It's Never Quite as Dire as It Seems

When nothing's working, something's working. I know sounds counterintuitive. but there is simply no reason to think, as bad as this market is -- and it is really, really bad -- that there isn't something to buy.

We are gripped by the fear of the remaining black holes -- Ford (F - commentary - Cramer's Take), GM (GM - commentary - Cramer's Take), Fannie (FNM - commentary - Cramer's Take) and Freddie (FRE - commentary - Cramer's Take), AIG (AIG - commentary - Cramer's Take), Lehman (LEH - commentary - Cramer's Take), WaMu (WM - commentary - Cramer's Take) and Citigroup (C - commentary - Cramer's Take) -- and we all know it. They are not convenient whipping boys. They are the Seven Deadly Stocks, and they aren't going away.

But are they really hurting General Mills (GIS - commentary - Cramer's Take)? Can I see selling Procter & Gamble (PG - commentary - Cramer's Take) because of them? After we know the price increases are all baked in? And don't hit me with that strong-dollar stuff, because GIS doesn't have that much overseas exposure. Same with Pepsi (PEP - commentary - Cramer's Take): This is a national company with an international arm that is generating oodles of cash and doesn't have as much bad commodity exposure as it did a few months ago.

I am not saying that these Seven Deadly Stocks are a recipe for good news out of housing or retail. Far from it. I have now read through every conference call of every retailer, including Limited (LTD - commentary - Cramer's Take) and Gap (GPS - commentary - Cramer's Take) and Dick's (DKS - commentary - Cramer's Take) and Ann Taylor (ANN - commentary - Cramer's Take) to give you some granularity, and not a single one's success had anything to do with demand. It all had to do with supply -- more importantly, a lack of it.

I am simply saying that in the worst economic downturns -- and this is one of the worst, but not yet the worst I have seen -- there's always something working, and that has more to do with the structure of the market than it does with the structure of companies' businesses. The reason I never give up looking isn't because I am insane optimist -- and believe me, it is bewildering and beleaguering to come in every day and look at your screens drenched with red, except if you are 100% short -- it is because there is so much money dedicated to equities that you are not going to see every penny leave here and escape to bonds. There are so many companies that are flush with cash that you cannot expect a total rollover. Some of these declines -- and the emphasis is strictly on some, because they are in the minority -- are actual buying opportunities created by the S&P 500 futures and their immense power to knock down stocks in thin markets like we have.

Take heart? Take heat: Yes, but keep looking. When things turn -- amazingly, they do now and then -- you get your chance.

Random musings: Today it hit me why I am sometimes really steamed at the Journal -- actually, it has hit me many times, but this time it felt particularly bad. They are more than happy to call an end to the mining party with an excellent piece about the problems of raw costs, accentuated by the folks who run Rio Tinto (RTP - commentary - Cramer's Take) after this morning's earnings. But did they ever invite us to begin with? Nah. You would have sat it out and with it, one of the great times we have had in many a year.

At the time of publication, Cramer was long General Mills, Procter & Gamble and Pepsi.

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Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. To order Cramer's newest book -- "Jim Cramer's Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer)," click here. Click here to order "Mad Money: Watch TV, Get Rich," click here to order "Real Money: Sane Investing in an Insane World," click here to get "You Got Screwed!" and click here for Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he appreciates your feedback and invites you to send comments by clicking here.

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