Jim Cramer's Stop Trading! Skip AIG

11/07/07 - 02:49 PM EST

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.

At the time of publication, Cramer was long AIG.

Jim Cramer is a director and co-founder 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. Click here to order Cramer's latest book, "Mad Money: Watch TV, Get Rich," click here to order his book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

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