CIT Is the Ultimate Fed Bailout Play

The headline in the USA Today Money section is stark: "Is This Another Great Depression?"

That's a headline that was worthy of Dow 8,000. It is what caused us to go down there.

Ever since we got there, governments around the world have decided to get into the banking business. The Fed is now one of the biggest banks on earth, and all I can say is that's the exact opposite of what happened with the real Great Depression, when there was no direct intervention.

The Europeans got this thing going. They decided enough with niceties; let's just make the banks safe, and that will keep the deposits in and end the runs. Once we end the runs, then it is only a matter of time before they lend, and that time is worth waiting for.

Now, we should be really clear on this: If the Fed's the biggest bank, that's not a long-term positive. We need other banks to step up.

But if your goal is to stop a Great Depression, it is a brilliant move. I think that we see the potential here as nothing is more inflationary than central banks printing money left and right, and that's precisely what has to happen to break the cycle of deflation.

It is the reason why I think that the banks are a huge buy here, particularly Wells Fargo (WFC - commentary - Cramer's Take), which I am buying through Wachovia (WB - commentary - Cramer's Take), Bank of America (BAC - commentary - Cramer's Take) and JPMorgan Chase (JPM - commentary - Cramer's Take) -- none of which are near where I think they can go.

So much can go right if the banks are saved, and the Fed's the bank for every company that the Treasury's not the bank for. Let's take CIT Group (CIT - commentary - Cramer's Take). If CIT is about to be bailed out, how can you not buy it? How can you not step up and pay $5 per share, as we know that the one thing that this government is not going to do is make the CIT shareholders or execs pay. In fact, I am now thinking that the great bank spec here might be CIT, as this little company has done its very best to survive and can be given any amount now to stay in business.

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