Jim Cramer's 'Stop Trading!': Financials' Risks

Fannie and Freddie are 'insolvent' and Lehman needs a vote of confidence from its CEO, says Cramer.
Author:
Publish date:

"Put them in the cabinet," Jim Cramer told viewers of

CNBC's

"Stop Trading!" segment Thursday, in reference to

Fannie Mae

and

Freddie Mac

. Cramer said "these companies are insolvent."

Moving on to

Lehman Brothers

(LEH)

, Cramer said the stock isn't going anywhere if CEO "Dick Fuld doesn't come in and buy a million shares as a vote of confidence."

Cramer said Lehman lost him as soon as they fired its CFO Erin Callan. "You can't put her out in public like they did and then throw her out," Cramer said. He believes Fuld has to step up and keep buying.

Commenting on today's trading, Cramer said that the current market is a really tough one and "everyone is trying to call the bottom in financials," but this is just not the way to go.

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

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

clicking here.

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.