"We are so on the hook to AIG ( AIG)," said Jim Cramer on Wednesday's "Stop Trading!" segment on CNBC. "That will prove to be an unbelievable black hole that will last forever. I don't know what was worse -- taking them over, or letting Lehman fail."

As for buying AIG shares, Cramer was confident. "In no uncertain terms, that will never pay off," he said. He said he was seeing opportunities in the market as we pull back, but "AIG is not one of them."

Moving on to natural gas stocks such as Ultra Petroleum ( UPL), he said: "Does anyone notice that natural gas this week is at the same price as it was last year at this time, and yet the stocks are cut in half or in thirds?"

Up next was State Street ( STT), which reported a technically better-than-expected quarter today. "Was it really better than expected?" Cramer asked. "I think that they're protected, because hey were going to be the next one that the shorts operated on."

Instead, the shorts are having an effect in the retail sector with stocks such as Macy's ( M). "When does that thing stop? Everyone's telling me that that's the next one," Cramer said. "The shorts have their way in retail now."
At the time of publication, Cramer had no positions in stocks mentioned.

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