A Bonding ExperienceIf you find yourself short on cash, already in debt and you need more money to pay the bills, it's very unlikely you'll get anyone to loan you money, Cramer said. But that's what our government, "the biggest deadbeat in the world," just did. The government is constantly running out of money, so it does what it does best, he said, and just got Congress to raise the debt limit to $9 trillion. When I see that, I see a way to make money, Cramer said. Now that the government can borrow more money, it will do so by issuing bonds, he said. Uncle Sam says that "if you give me $1,000, then I'll give it back in 10 years with 6% interest," Cramer said. That's a 10-year bond. So, it's time to buy shares in the companies that trade those bonds, and he said it's essential to understand that the bond business is an amazing and profitable business. Brokers buy them from the government, and then, like a retail store, they mark them up and resell them to others. Big institutions, like company pension plans, need to buy hundreds of millions of dollars to fund their pensions, he said. And when he sold bonds, he said he took a commission on every bond.
Urban JungleCramer said that Urban Outfitters ( URBN) has moved lower because the stock's two largest holders, Goldman and Citigroup ( C), are letting go of the shares on worries that the retailer's look could be too casual. When a large institution tries to dump a million shares, it can knock down the stock of a company the size of Urban Outfitters, he said. The company had been one of the fastest-growing retailers in the country, but the stock slipped in recognition of the fact that sales slowed, he said, adding that in a week or two the company will file its 10-K quarterly earnings report that will likely corroborate evidence that business has slowed. The stock could take another dip then, he told a caller. But Urban Outfitters just announced a huge share buyback, which means that the company itself thinks the stock is cheap, Cramer said, and he believes the company can reaccelerate. Is it the best retail story? No, he said, giving that title to Best Buy ( BBY) or Sears ( SHLD). "But I like the odds for Urban Outfitters," he said, adding that he would think about buying into this weakness. Another caller wanted to know Cramer's take on defense contractor Rockwell Collins ( COL). "When I hear the president say that the Iraq war is under control and then
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