It's Simply Haves Vs. Have Nots

Crux and crunch. Of course the earnings are going to get worse for everything from the financials to the washers and dryers. Of course the numbers are coming down.

But, for heaven's sakes, that's why the multiples are down so much for so many companies. And that's why the Fed is going to cut.

When we get to cutting time it is sometimes because of a crisis and it is sometimes because of a dramatically slowing economy. In either case, before the cavalry comes, you have some real multiple compression and worry and shortfalls.

That's where we are right now. To navigate, to get out and get in, is just too hard. Witness last week's vociferous, vicious financial rally. Other than the oversold oscillator and a couple of good speeches there was nothing to hang your hat on, but tell me you didn't want to catch that $41 to $46 rally in Bank of America (BAC - commentary - Cramer's Take) or the $38 to $43 rally in Wachovia (WB - commentary - Cramer's Take). Anyway, the worries about earnings are in the heavily discounted stocks.

You can fret about minerals and mining, but that's China.

You can worry about oil, but that 's emerging markets and supply, not as much demand.

You can worry about ag, but you will be the only one.

You can worry about defense and aerospace, but both sides of the aisle are for more defense spending, and Boeing (BA - commentary - Cramer's Take) is a rest of the world play, as are its derivatives.

Or you can worry about autos and you should be, although the pullbacks have been steep there too.

You can worry about retail, although the valuations of Kohl's (KSS - commentary - Cramer's Take) and JC Penney (JCP - commentary - Cramer's Take) and Macy's (M - commentary - Cramer's Take) are pretty low. (Target's (TGT - commentary - Cramer's Take) had a big healthy move off of credit cards.) But it is Costco/JCrew (JCG - commentary - Cramer's Take) that people are in anyway.

Tech? I read Nokia's (NOK - commentary - Cramer's Take) comments and I am not too concerned. Cell-phone prices go down. That's what they do. Apple (AAPL - commentary - Cramer's Take) and Google (GOOG - commentary - Cramer's Take) are having smoking quarters. Not that worried there, but it is the usual suspects that breed worry: Analog Devices (ADI - commentary - Cramer's Take), National Semi (NSM - commentary - Cramer's Take), Texas Instruments (TXN - commentary - Cramer's Take), and the like. No thanks.

So, to me the haves have it and the have nots are at risk. And the have nots are visible, which provides one more reason for the Fed to act.

All of this handwringing, and much of the coming catastrophe in real estate, could have been avoided by swift Fed action, but that time has passed. Now we are just hoping to staunch the blood so other areas can prosper some time in 2008.

But the performance of both Treasury and Fed for something that was so obviously going to happen six months ago remains one of the great puzzles of my investing life. They just got it plain wrong.

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

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 preorder Cramer's newest book -- "Jim Cramer's Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer)," due in stores Dec. 4 -- on Amazon, 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.

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