TheStreet.com TV Recap: What Bears Needed to Do

Cramer says they needed to take the Wednesday close below the intraday low.
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The bears bungled their chance to take the market down, Jim Cramer said on

TheStreet.com

TV's Wall Street Confidential

Web video Thursday.

Cramer said that the bears, who are trying to use exchange-traded funds "to knock the market down," needed to take the Wednesday close below the intraday low. However, they failed to do that, Cramer said.

It was "crucial" to do because today is markup day, he explained. "There would be no markups if

the bears had cracked the market."

Markups, by the way, are "highly illegal" and "very difficult to catch," Cramer said.

Cramer also looked at the brokerage houses. "I think the key stock to follow today is

Bear Stearns

(BSC)

."

Even though Bear has been "deeply linked" to subprime lending, that is not right, Cramer told Gregg Greenberg, the host of Wall St. Confidential. In fact, he said, he believes that

Merrill Lynch

(MER)

is more exposed to that type of lending.

Also, the fact that Bear Stearns can go up 3 points on a Lehman Brothers upgrade tells Cramer that people are not worried about the broker in the short run.

Another thing to watch is that gold is going down, he pointed out.

"People really misinterpreted Bernanke yesterday," Cramer said. "There is no central banker in the world that's going to come in front of Congress and say they are not worried about inflation."

Further, he said he doesn't believe inflation is the issue.

"The issue is poor people and the middle class and whether they can get loans," Cramer said. "The fact that there could be some liquidity coming into the brokers doesn't necessarily mean there's going to be liquidity coming into the poor people."

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