Tons of articles are out there today about how disenfranchised people are losing their homes. How many articles can the Fed handle? How will Ben Bernanke deal with Congress when the Democrats read these articles and know that millions of people would benefit from a decline in short rates?
But without this, you have to understand, we are not in shape to be able to weather this news. Today we presume that everyone who sells homes in the $250,000 price range has been jamming these homes down poorer people's throats to move inventory and beat Wall Street's numbers.
When you have that, plus a short-term peak in the metals and a continuous rise in oil, you get the stagflation story that the bears always like to bring out here. Today that's a compelling story that should, again, hit all of the financials.
Bottom line: We are still overbought, and I doubt this action today will do anything but work off the overbought Wall Street gibberish for a weaker tape, as people continue to fear the meltdown, accelerated by our friends at Beazer (BZH - commentary - Cramer's Take) and the concomitant investigations and headlines.
At the time of publication, Cramer had no positions in the stocks mentioned.
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