Please enjoy this free sample of our premium content featuring Jim Cramer. To get all of Cramer's premium content free for a limited time, please register here.
NEW YORK ( RealMoney) -- How about this? On a rebounding day, let's play 2008. Let's see if it makes sense, especially in light of the fact that we could rally today when everyone figured we would get another shellacking. If this is 2008, then the following would happen: Many of the large financials would get wiped out. Under a 2008 scenario, the U.S. government has to take a stake in Bank of America (BAC) and dilute the common. The dividends of all banks would be suspended. Wells Fargo (WFC) and Morgan Stanley (MS), trading around $12.63, would trade to $7, and this time Morgan Stanley would get bought by somebody. Maybe a shotgun merger with Goldman Sachs (GS), which now trading around $89, would go to $48. The U.S. government would have to bail out General Motors (GM), again. This time Ford (F) would have to go -- its balance sheet doesn't have enough cash. This time, Buffett doesn't have enough money, because he already bought a lot of stuff.
We would see a dramatic cut in the dividend of General Electric (GE). We would be looking at a collapse in credit that would cause Caterpillar (CAT), Deere (DE), Joy Global (JOYG) and Cummins (CMI) orders to dry up.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV