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NEW YORK (
TheStreet) -- "The second blastoff of the financial stocks is beginning now," an excited Jim Cramer told the viewers of his "Mad Money" TV show, as he outlined 10 reasons to buy the banks.
Cramer said the critics are still predicting a meltdown in the sector, but he said these pundits were wrong a year ago, and they'll be wrong again, as the financials begin a second ascent.
Here are the reasons Cramer gave for buying the banks.
1. The worst of the credit losses are now behind us, and nothing matters more to the banks than credit losses, as they can now begin to rebuild reserves.
2. Washington is becoming less of a factor, as it becomes more apparent that financial reforms are slowly dying.
Citigroup(C) CEO Vikram Pandit gave fabulous testimony to Congress last week, calming everyone's fears.
4. Both Citigroup and
Comerica(COM) have proven that banks can find the capital they need.
5. Banks are now ready to raise their dividends, just as soon as the government allows.
6. Predictions of an implosion in commercial real estate are vastly overblown.
7. The Federal Deposit Insurance Corporation is not taking over a lot of banks anymore.
8. The financials have dramatically underperformed the markets over the last six months, attracting the eye of money managers looking for profits.
9. Strong retail sales numbers show that consumers are shopping, and that's good news for credit card-issuing banks.
10. Banks always rally as soon as unemployment peaks, and it appears that has happened.
For all these reasons, Cramer said stocks like
JPMorgan Chase(JPM), a stock which he owns for his charitable trust,
Action Alerts PLUS
, are a buy.