Jim Cramer's Stop Trading! Buy Penney

Cramer says subprime handwringing is overdone.
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The panic over subprime lenders is "overdone" and substantial fallout will be "contained to one or two ne'er-do-wells," Jim Cramer said Thursday on

CNBC's

"Stop Trading!" segment.

Cramer said it's possible we could still see a big player in the financial space take a big portfolio hit from the blowups in

New Century

(NEW) - Get Report

,

NovaStar

(NFI)

and other lenders to borrowers with poor credit histories. But he stressed that there has been a "rush to capital from this sector," which should mean that all but the unhealthiest players should survive and that there shouldn't be a risk of a huge problem in other financial companies.

Cramer is bullish on

Saks

(SKS)

and

J.C. Penney

(JCP) - Get Report

, saying the consumer remains robust even though "no one has any faith" on Wall Street.

At the time of publication, Cramer had no positions in stocks mentioned.

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