Wachovia (WB - commentary - Cramer's Take), again, is this market. Think about the stories today about Wachovia and theft. They read horribly. They read like you can expect eons more negative stories after this. And what did the stock do? It went higher.
It went higher because, like Bank of America (BAC - commentary - Cramer's Take), it was able to raise tons of capital and decent rates that will make business fine without a cut in dividend. With $3.5 billion in rebuilt capital, you are looking at a company that will be able to lend in 2008. I put it like that because if you read Michael Farrell's new letter at www.annaly.com, you will know that not having enough capital to lend is the cause of a huge number of the problems we face as an economy.
This WB is the tell that says we are going to go back up again after this selloff and that you have to start picking at beaten-up financials, with WB being the position worth starting here.
At the time of publication, Cramer had no positions in stocks mentioned.
Jim Cramer Blog Junk Caused the Pain 2/5/2008 3:42 PM EST Until we get rid of all of the garbage securities, today can happen.
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