Things look awful for the mortgage companies, Jim Cramer said on TheStreet.com TV's Wall Street Confidential Friday."There is a lot of panic" because of the idea that all of the mortgages behind the CDOs are insured by PMI Group ( PMI), MBIA ( MBI) and MGIC Investment ( MTG). "I decided this morning from now on I am going to presume that PMI, MBIA, MGIC and Washington Mutual ( WM) are not going to make it," he said. "I say that because I cannot be a conservative investor and believe that those companies can make it." People shouldn't believe anything Merrill Lynch or any of these insurers or Countrywide Financial ( CFC) has to say, Cramer said. "You just can't trust them."
Cramer: What I'm Doing About Merrill's Panic Attack