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Get Over Subprime's Collapse
Originally published on 3/12/2007 at 8:43 a.m.
New Century's(NEW Quote - Cramer on NEW - Stock Picks) a shocker now? Will someone give me a break on this stuff?
We
know most of these companies are going to fail. If we are going to react individually to each failure or charge, we're going to be dead wrong.
If you're going to own financials, you should be prepared to have a total collapse of this industry. It's what's going to happen. If the futures are going to react negatively each time one fails, we're going to have a monster amount of selling.
To me the real issue here is to immunize yourself and get ready for the selloff every time one of these goes belly-up -- and I
repeat that they all should go belly-up. If some are saved, it will be a miracle and miracles do happen, but my bullish thesis involves a total collapse of loans for poorer people, which then will require the Fed to ease while the rest of the market's earnings are relatively unphased.
Jim Cramer
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