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Jim Cramer's Stop Trading! Skip AIG

TheStreet.com Staff

Don't buy AIG (AIG Quote - Cramer on AIG - Stock Picks), Jim Cramer said Wednesday on CNBC's Stop Trading! segment.

"I wouldn't touch that till it yields 4%-5%," Cramer said of the big insurer, which he owns for his Action Alerts Plus charitable trust. Cramer said the stock, which currently yields 1.3%, can't be bought ahead of Wednesday evening's earnings report because investors don't know how big the losses are going to be on AIG's portfolios of subprime mortgages and collateralized debt obligations and the like. What's worse, Cramer added, is that there's no reason to believe investors will have any more clarity after tonight's report.

Cramer likes Cisco (CSCO Quote - Cramer on CSCO - Stock Picks), calling it "one of 10 stocks that goes up" amid the market's credit malaise.

Cramer also said New York Attorney General Andrew Cuomo is "destroying" the already bedridden housing market. Cramer said his subpoena of Fannie Mae (FNM Quote - Cramer on FNM - Stock Picks) and Freddie Mac (FRE Quote - Cramer on FRE - Stock Picks) in an ongoing probe of WaMu's (WM Quote - Cramer on WM - Stock Picks) house-appraisal practices threatens to "shut down the market" for houses.

"Cuomo is about confiscation," Cramer said.