despite all the toxic hedge fund handwringing, Jim Cramer said Friday on
"Stop Trading!" segment.
Cramer said 1998's collapse of the Long Term Capital Management hedge fund "was 100 times worse" than the apparent demise of two highly leveraged Bear Stearns funds that were betting on subprime mortgages. Cramer said the near implosion of the funds "is a liquidity issue, not a credit issue," and that big Wall Street buyers of the fund's paper, such as
, "need to grow up."
Cramer said there will be another toxic fund out there somewhere that will blow up, but that's just "another group of idiots" and investors should keep "a cooler head" before they go out and sell all their brokerage stocks on the news.
"Sell them for another reason" if you must, Cramer said. But he urged investors to bear in mind the overall strength of recent quarters at
At the time of publication, Cramer was long Goldman.
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
TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.