Tech Taking Hits for the Banks

You know how screwed up this market is? We get big worries about the banks, and the BKX bank stock index is down less than a point and a half (on a basis of 64) but the SOX semi index is down 11 (on a basis of 344 basis)!

Lunacy. Just lunacy.

What is with this market when the semiconductors fluctuate the most with the bad news? This isn't about KLA Tencor (KLAC - commentary - Cramer's Take) for heaven's sake. Intel (INTC - commentary - Cramer's Take) is not going up or down on oil or banks. Sandisk (SNDK - commentary - Cramer's Take), Broadcom (BRCM - commentary - Cramer's Take)? Hello?

But that's what happens.

Here's the real deal. This market is falling because we are back in credit crisis mode. Wachovia (WB - commentary - Cramer's Take), AIG (AIG - commentary - Cramer's Take)--Yes AIG, Bank of America (BAC - commentary - Cramer's Take) and Citigroup (C - commentary - Cramer's Take) are in trouble and that's too much at once. We don't even know the real effect on these banks of a default of MBIA or Ambac (ABK - commentary - Cramer's Take)? They don't tell us.

And let's be clear: Countrywide Financial (CFC - commentary - Cramer's Take) can sink Bank of America. It is the biggest mistake I have ever seen in banking history. THE BIGGEST. That's the one that should be in the teens. That's right: BAC belongs in the teens. Wachovia, with no handle on its California portfolio belongs in the single digits.

Washington Mutual? Shut it and open it at Wells Fargo the next day and take their bad loans off the books.

Citigroup? Jump ball..

Yet on that basis people sell Apple (AAPL - commentary - Cramer's Take)and Qualcomm (QCOM - commentary - Cramer's Take). They sell Symantec. (SYMC - commentary - Cramer's Take)

The market is nauseating because it is completely dependent on old techs and NOT on reality: Credit and oil. The market has so much wrong here, but the worst focus is on tech. It's the magnified sector when it should be nothing special at all.

So go sell Nokia (symbol - commentary - Cramer's Take)on oil. Go dump EMC (EMC - commentary - Cramer's Take). You are making no sense if you do so.

Random musings: Carmax (KMX - commentary - Cramer's Take) told you about Ford (F - commentary - Cramer's Take)ahead of Ford. That was the point of yesterday's story that I wrote...Israel on the attack? Another reason to buy Gold....

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

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