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Jim Cramer's Best Blogs

Catch up on Jim Cramer's thinking on the hottest topics of the past week.
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Jim Cramer fills his blog on

RealMoney

every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:

  • how concerns about the banks are getting debunked,
  • why investors shouldn't be so quick to give up on Wells Fargo, and
  • understanding oil's impact on stocks.

Click here

for information on

RealMoney

, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.

A Lot of Bank Worry Is Getting Debunked

Posted at 6:35 p.m. EDT, Oct. 22, 2009

American Express

(AXP) - Get American Express Company Report

and

Capital One

(COF) - Get Capital One Financial Corporation Report

both shoot the lights out. But we worry endlessly about credit losses.

TheStreet Recommends

Visa

(V) - Get Visa Inc. Class A Report

just boosts its dividend, but we worry about consumers not shopping.

U.S. Bancorp

(USB) - Get U.S. Bancorp Report

and

PNC

(PNC) - Get PNC Financial Services Group, Inc. Report

both report charge-offs that are better than expected, but we throw up our hands at deadbeats and worries of soon-to-spike defaults.

Wells Fargo

(WFC) - Get Wells Fargo & Company Report

says Pick or Pay and higher-end mortgages are on track to improve, but we see housing prices declining and more people walking away from premium mortgages.

And you know what? I am sick of the grousing about all of this stuff and how these stocks are all houses of cards or overvalued or doing the wrong thing or about to get killed or falter or how they are liars about everything.

They can't all be lying.

It isn't possible.

Nor do I think that it is right to let

State Street

(STT) - Get State Street Corporation Report

or

Citigroup

(C) - Get Citigroup Inc. Report

or

Bank of America

(BAC) - Get Bank of America Corp Report

bring all the stocks down in the group. Each has its own set of issues that will be dealt with over time.

If I were

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. Report

, I would buy State Street -- great biz to have. Bank of America will take time to rebuild, but if employment takes a turn for the better, I think you make 50% rather quickly. Citigroup? It wasn't all that bad, because it is busy trying to reduce Citi Holdings. We don't know what they hold, and we don't know what they are selling, but I hope they are selling their bad loans to fund the good like

Bank of New York

(BK) - Get Bank of New York Mellon Corporation Report

did, which caused that nice eruption.

Frankly I am also steamed that PNC

and

USB, neither of which is as good as WFC, get the credit and WFC gets the pain. Nobody who follows bank stocks for years and followed them well -- that exempts Dick Bove -- would ever accede to that kind of analysis.

In the end, the equity market cures all. Consider that one of

the

worst banks I follow,

Marshall & Ilsley

(MI)

, did a secondary today that everyone made money on. Frankly, if BAC and WFC did secondaries tomorrow, their stocks would be higher, not lower, next week.

Maybe they ought to think about it just to pay back TARP. Maybe not doing secondaries is what is really holding them back.

Either way, this group is looking real good after tonight's AXP and COF beats.

I can't wait to hear what the bears have to say tomorrow!

Random musings:

Amazon

(AMZN) - Get Amazon.com, Inc. Report

will be even better when it finishes with Zappo's. I think that all of the nonsense about

Wal-Mart

(WMT) - Get Walmart Inc. Report

price wars is much ado about nothing. Amazon has won this segment. Everyone else is Zune.

At the time of publication, Cramer was long BAC, GS, V and WFC.

Special note from Jim:

You can learn my time-tested ways to trade smart, even in this market. All my latest thinking is in my brand new book,

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Cramer's Upcoming Book Signings
Tuesday , Nov. 17, 7 p.m. Barnes & Noble, Manhattan(33 East 17th St.)

Don't Be So Quick to Ditch Wells Fargo

Posted at 6:24 p.m. EDT, Oct. 21, 2009

Man, that was bad form, that late-day

Wells Fargo

(WFC) - Get Wells Fargo & Company Report

hit job on top of the pay cuts mandated by the

Fed

. It was just so ugly that it is hard to believe there won't be carryover.

I know the bear case on Wells; I laid it out this morning in

Action Alerts PLUS

, and it is substantial. Plus, it isn't like they do much explaining. Wells is always asking you to take their word for it, and the perception is that everything they bought from Wachovia

has to be in default

, including all of the

pick

or

not pay

loans.

I have learned to trust Wells Fargo over the years, but the irony of the man who told me not to trust them at the bottom almost 20 years ago now downgrading the stock is not lost on me. Dick Bove got it short-term right when he downgraded it -- like he did this afternoon and maybe tomorrow -- but I believe he will get it long-term wrong next year.

Of course, unemployment has to go down for that to happen, but ask yourself a question: Can you think of a better stock to play on an employment rebound? How many people will buy homes or take out mortgages or simply start paying again?

Everyone's all doom and gloom about the banks, and we know the

UltraShort Financial ProShares

(SKF) - Get ProShares UltraShort Financials Report

lets you operate on them - nothing has changed from that respect last year.

I just want to remind people again that in 1990 and 1991, you had a huge move, then a retracement and basing, and then another even more huge move.

I think we are having the retracement and basing, and it has lasted for several months and will probably continue to do so.

No freak out.

Bias to the downside for now.

And nothing more.

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

Oil's Gravitational Pull on the Market

Posted at 12:34 p.m. EDT, Oct. 21, 2009

Can you imagine where this market could go if oil were to go to $85?

Vale

(VALE) - Get Vale SA Report

goes to $30,

Freeport-McMoRan

(FCX) - Get Freeport-McMoRan, Inc. Report

to $90 (thanks for that dividend), and

Procter & Gamble

(PG) - Get Procter & Gamble Company Report

will go to $60 and

Apple

(AAPL) - Get Apple Inc. Report

to $210 and

Pepsi

(PEP) - Get PepsiCo, Inc. Report

to $65.

Hold it, wait a second. Did he say Pepsi, Procter and Apple?

Yep.

We are in a totally ridiculous market -- as Dicker

pointed out earlier

-- and I think that you really can get some amazing turns in plain old S&P names, as we saw today, when oil moves.

You could say, that's just the dollar, not oil, but if that's the case, the weak-dollar drug stocks should be on fire, and they are not. And the retailers, not dollar-related, are going up even as oil is a tax on them. That's just the gravitational pull of oil on the S&P, which helps turn up the big retailers.

It's all about tone. The tone changes with oil, which then panics the underperforming managers to buy, because they fear that the dip's end is upon us.

Can't blame anyone for being angry at this, but it is the reality, and we have to get used to it, because it has been with us ever since the bottom of the market, and it's the best correlation we have to work with. So let's work with it.

At the time of publication, Cramer was long PG and VALE.

Jim Cramer is co-founder and chairman 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

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