Hope of a Monoline Deal Sends Shorts Running

The monolines are more in control of this market than even I realized. The hope of a deal just announced by CNBC has rocked this market and sent the shorts scurrying.

Funny, if only the Fed heads watched CNBC, they would know that the monolines and housing are the only things they need to worry about. If the Congress had given one-tenth of the money that it is mailing out to consumers to the monolines, we would have already licked the problem.

Remember that the monolines are behind much of the weakness in the investment banks, the insurers and the regular banks. They are behind the weakness in the municipals and all that gets funded there, including schools and road-building.

It's no wonder we could rally on a whiff of an Ambac (ABK - commentary - Cramer's Take) rescue plan.

The market isn't dumb; now we just need the Fed and Treasury to listen.

Random musings: AIG (AIG - commentary - Cramer's Take) is a huge beneficairy of any bailout; it has tons on the line.

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

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