If Beazer Bamboozled

Leave it to Beazer (BZH - commentary - Cramer's Take)! Say it ain't so!

Now this is a bad one. When did Beazer Homes know about this fraud? Was it when it was saying things were bottoming? Who else is doing this kind of thing? I keep thinking back to the interview I had with Countrywide's (CFC - commentary - Cramer's Take) Angelo Mozilo when he said that we will discover a ton of fraud soon in the mortgage business. Good call, Angelo!

If this is as pervasive as Angelo says, others will fall, and we will not trust the numbers we have. Beazer has been a respectable company; now it feels like Enron. I know the homebuilders are crummy, but until tonight I felt that they were honest, the brokers not.

Wrong!

Look for another round of worry coming from this sorry group. And a renewed interest in stocks such as Pepsi (PEP - commentary - Cramer's Take) and Coke (KO - commentary - Cramer's Take) until the smoke clears, which may not occur until we find out which are the other companies that Angelo hinted about.

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

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