Jim Cramer's 'Stop Trading!': Buy Costco, Nordstrom

Buy Costco (COST - Cramer's Take - Stockpickr) and Nordstrom (JWN - Cramer's Take - Stockpickr) Jim Cramer said on CNBC's "Stop Trading!" segment Thursday.

Cramer said the two retailers are part of an early cycle trade.

Today, Treasury Secretary Henry Paulson met with heads of sovereign wealth funds from Abu Dhabi and Singapore to clarify the funds' objectives. Singapore and Abu Dhabi stated that the interests of their funds were not aligned with those of their governments.

Cramer said that it sovereign wealth would likely play a role in helping solve the current liquidity crisis.

Cramer said, "There's four horsemen of the pending apocalypse." Merrill Lynch (MER - Cramer's Take - Stockpickr), UBS (UBS - Cramer's Take - Stockpickr), Washington Mutual (WM - Cramer's Take - Stockpickr) and Citigroup (C - Cramer's Take - Stockpickr) must be preserved so that the financial system can remain intact, he said.

Cramer outlined likely possibilities for the troubled financials. "Washington Mutual gets bought in a takeunder by Wells Fargo (WFC - Cramer's Take - Stockpickr)," he said. He said that Goldman Sachs (GS - Cramer's Take - Stockpickr) can buy UBS. A number of banks would like to buy Merrill as a takeunder, he said. However, "No one's big enough to buy Citigroup," he said. That's why the U.S. needs sovereign wealth funds, he said.

"Those four horsemen must not be allowed to be shot," Cramer said. "If Bear (BSC - Cramer's Take - Stockpickr) was insolvent, all of these have a similar quality to them." He clarified that people who are banking with the financial four horsemen will be safe, but "if you own stock in these, you must be shaking."

Of troubled leasing company CIT (CIT - Cramer's Take - Stockpickr), Cramer said, "I've been so negative on this company that when I saw a high-level official of this company ... I felt bad. ... It's got a real Countrywide (CFC - Cramer's Take - Stockpickr) feel to it."

Cramer said that CIT's loan portfolio was among the worst in the business. "You will see the worst collection other than E*Trade (ETFC - Cramer's Take - Stockpickr) of bad loans. ... This is the worst single portfolio that I know of other than E*trade," he said. "They need to work very quickly to get a giant infusion of capital. ... They're not big enough to take down the system," he said, but he believes the company faces serious liquidity problems going forward.

Of agriculture name Bunge (BG - Cramer's Take - Stockpickr), Cramer said, "I've walked away from the ag trade for a while because it's too overheated. ... These stocks are in a compressed bear market," he said.