Cramer: Look at the Facts on Financials

This column by Jim Cramer appeared on RealMoney earlier today. To check out a free trial to RealMoney, please click here.

If you listen to the bank bears, everything's worse than it was four weeks ago. The losses are increasing, the auction-rate preferreds are now biting, the mortgage implode-a-meter now measures how many homebuilders are going under. German banks are repossessing Vegas vanity projects, and Freddie Mac's (FRE) moaning that it isn't their fault, they didn't compromise standards, things have just gotten much worse.

To which I say, let me give you some evidence that would suggest otherwise. Check out the prices from July 15 and those from last night's close:

• Ambak (ABK): $1.70 -- $4.59
• MBIA (MBI): $3.90 -- $8.28 (not including today's blowout earnings!!)
• Wachovia (WB): $8.90 -- $17
• Bank of America (BAC): $18 -- $31
• Fannie (FNM) (yes, FNM!): $6.90 -- $9.90
• Freddie (yes, FRE!): $4.05 -- $5.89
• Wells Fargo (WFC): $19.90 -- $29
• JPMorgan (JPM): $30 -- $39
• Lehman (LEH): $11 -- $17
• WaMu (WM): $3.10 -- $4.90
• Citi (C) (yes, C!): $14 -- $18
• AIG (AIG) (yes, AIG!): $20 -- $24

When I made my bottom call -- as usual maligned by people who say I have called many bottoms -- regardless of whether I was saying a trading bottom or whatever, I was simply speaking of not violating those levels. There's a host of other commodity-consuming companies' levels that also hit bottom at the same time with the peak in oil that I don't think will be violated.

My evidence doesn't say that things are going to roar. I believe that Fannie and Freddie will have to be bailed out by the federal government and the common will get crushed, contrary to what the regulators are saying. I think Fannie's numbers today are much worse than should be allowed, and the common should be confiscated this afternoon -- the heck with the shareholders. Both FNM and FRE common shareholders should be given 10% of NewCo, with the government getting 90%, so we can benefit from the comeback. FNM and FRE are both worthless right now; I am not one who defends them. I think they are worse minus 10 or something, but stocks stop at zero.