Disconnect Between Action and Reports

Did you ever wonder how judgments are formed? Like the snap ones on Citigroup (C - commentary - Trade Now), General Electric (GE - commentary - Trade Now) and Bank of America (BAC - commentary - Trade Now)? I have spent all morning trying to figure out the quarters (we have put out some notes on them for Action Alerts PLUS) and I think the capital build's impressive on all and I feel "better" than I did.

Obviously the market totally disagrees with me on all but the one I feel worst about: Citigroup. (For the record I do not believe GE is CIT (CIT - commentary - Trade Now) -- very different capital structure and not just the too-big-to-fail logic I am hearing.)

This was a capital-building quarter in a morass of an economy that would have normally depleted capital. I don't know whether it is forbearance -- the regulators giving these entities a little room -- but the capital increases and what is left of them after charges impressed me.

I agree with Doug Kass about selling some bank calls. It might take a bit to sort things through and in the interim this move makes sense.

But back to the question of snap judgment: There was no doubt in my mind that we got a good number from JPMorgan Chase (JPM - commentary - Trade Now)the other day and the instant analysis brought out sellers, not buyers.

JPMorgan had excellent growth to earning, which was readily apparent. The action, however, said it didn't. (Capital was never an issue with JPMorgan because it has repaid TARP.) The action was wrong.

Maybe today it will be wrong again on the three that reported. I trust the action less than the homework.

Random musings: I am wondering if the big permit jump is from builders selling land to maintain cash flow, as my trusted friend Matt Horween pointed out to me this morning. That's plausible and means I still don't buy Ron Insana's homebuilding thesis in Market Movers -- but I do love the jousting.

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Know What You Own: Other financials that may interest investors include Morgan Stanley (MS - commentary - Trade Now) and Goldman Sachs (GS - commentary - Trade Now). For more on the value of knowing what you own, visit TheStreet.com's Investing A-to-Z section.

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At the time of publication, Cramer was long GE, Bank of America and Citigroup. Jim Cramer is co-founder and chairman 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 order Cramer's newest book -- "Jim Cramer's Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer)," 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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