Market's 'Black Holes' Are Almost All Filled

Editor's note: Jim Cramer will present his 2009 stock outlook for the first time at TheStreet.com Investment Conference on Saturday, Oct. 25. Limited seating. Act now. The black holes are almost all filled. That's how I feel about the soon-to-happen merger -- at least if you read the headlines -- between General Motors (GM - commentary - Cramer's Take) and Chrysler.

Let's go over them. We fixed Washington Mutual (WM - commentary - Cramer's Take) by giving it to JPMorgan (JPM - commentary - Cramer's Take) at a fabulous price that will be endlessly additive to earnings once TARP starts, because the mortgages are already written down.

We have taken care of Lehman, even as it was stupidly handled and has caused an endless amount of pain. It was so obviously too big to fail. But Tim Geithner, the fair-haired Fed boy, said otherwise, and Chris Cox, the shorts' best friend, as he loves an unregulated credit default swap market, let it happen, and he's still smelling like a rose.

Fannie and Freddie were obliterated and the preferred crushed, which has just annihilated bank bottom lines, but they are gone, thank heavens.

AIG (AIG - commentary - Cramer's Take) got the big ol' bailout, and we will find out next week, Oct. 21, that AIG is the hedge funds' great hope, because it will pay off on all of those insurance policies bought by hedge funds that were busy murdering Lehman. If we get through that date and the Treasury is the biggest underwriter, the hedge fund community will be flush, and we might get some sort of more permanent bottom.

Citigroup (C - commentary - Cramer's Take)? We know from the $25 billion infusion and the desire for the FDIC to sacrifice Wachovia (WB - commentary - Cramer's Take) for Citigroup that this company will be protected no matter what.

Which leaves GM and Ford (F - commentary - Cramer's Take). A combination of GM and Chrysler would eliminate the worries about GM, because the darned thing will be so convoluted and get so much bank forbearance and will be able to fire so many people that you will see this one removed from the black-hole list.

ALL JIM CRAMER BLOG ENTRIES | POST A COMMENT | READ COMMENTS  

---

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.

TheStreet.com has a revenue-sharing relationship with Amazon.com under which it receives a portion of the revenue from Amazon.com purchases by customers directed there from TheStreet.com.