The Futures Are Leading the Dance Yet Again

Here we go again. Futures go up. Persistent bid comes back. GM (GM - commentary - Cramer's Take) keeps rolling over as do Goldman Sachs (GS - commentary - Cramer's Take) and Morgan Stanley (MS - commentary - Cramer's Take), and we ignore them until everything comes to a head and the persistent bid goes away and we realize how much trouble we are in all over again.

This constant pattern of the futures calling the shots -- which typically includes a late-day ramp kicks in, perhaps in ETFs that give you double that day's action -- has been responsible for the inability of the market to wash out. Because of that, we never get to a level where companies get bought and we have a stronger system.

We also all know the truth, which is that situations like Circuit City (CC - commentary - Cramer's Take) going under are just precursors. Circuit City doesn't have nearly as much debt as do the retailers that were taken private that we haven't heard from. No major homebuilders have gone under. Not much more bank consolidation now that pretty much every bank that wanted it got money. Totally disorganized bailout of all, good and bad. The AIG (AIG - commentary - Cramer's Take) super new bailout is only part of what I have been saying for months now, which is that nobody within AIG knows what the real risk is. AIG does systematically deny that it has or had much if any exposure to some of the huge failures like Lehman Brothers, but it has all been connected in that they might have had exposure to another institution that had exposure to Lehman Brothers.

Meanwhile, who the heck knows what is going on with Goldman and Morgan Stanley that they can never rally.

Oh, but I forgot that what matters is that everything is cheap, and Warren Buffett's on board.

So I guess I should stop worrying and go in and buy 'em right along with the futures and hope that they don't stop ramping until 200 to 300 points up at the end of the day.

At the time of publication, Cramer was long Morgan Stanley and Goldman Sachs.

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Know What You Own: Cramer mentioned Circuit City. Other electronics retailers include Best Buy (BBY - commentary - Cramer's Take) and RadioShack (RSH - commentary - Cramer's Take).

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