Skip to main content TV Recap: Bank on E*Trade

Cramer lays out the case for E*Trade and his take on the real estate market in Manhattan and beyond.

With shares trading around $13,


(ETFC) - Get Free Report

is a stock people should consider buying here, Jim Cramer said Tuesday on TV's

Wall Street Confidential Web video


CEO Mitch Caplan survived, said Cramer, by moving his company into mortgages. "He's an incredibly honest man; he's a got a great franchise," Cramer said. "His mortgage business did what everybody else's mortgage business did, it got hurt." However, Caplan has addressed it head on, he said. "Your money's safe at E*Trade."

The financial institution's covenants are in order, unlike those of the homebuilders, Cramer continued. "I don't know if I'm a buyer of the homebuilders because they might be in violation of their covenants as they mark down their properties, but E*Trade is not in violation," he said.

Switching the topic to New York real estate, he pointed to private player Manhattan Mortgage, which he described as the one mortgage company in New York for almost anyone who needs a mortgage of more than $1 million. What's amazing, Cramer explained, is that business is up big.

"August was a huge month in New York and the spreads are still very tight," Cramer said. "That's how I know the market's really healthy. I don't care where the price is, but the spreads are tight."

If people want to buy a property that's listed for $1.8 million, they'll purchase it for $1.8 million and be able to sell it for $1.79 million, he explained. "The health of a market is the bid and the ask."

In addition, 10% of the mortgages that were taken in August were in non-dollar denominated financing, Cramer continued. Plus, inventory is down 23% year-over-year in New York and there's no new construction going on in the city right now, he added.

"So you have the exact opposite than the rest of the country," Cramer said. "You have a tight bid-ask, you have foreign buyers who are the marginal buyers, and you have no new construction."

Meanwhile, the rest of the country is being flooded with construction, there are no new buyers and there is this "incredible situation" where people are paying $200,000 for homes that are initially being offered for $400,000.

"It's unfathomable how much different Manhattan is from the rest of the country," Cramer said. "It's a tale of two cities. It's New York City and then it's the rest of the country."

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

Jim Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, 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. 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