Tags: Cramer | UK | Lehman | Friday | Financials

Cramer: If Europe Doesn't Collapse, Buy Financials

Thursday, 20 May 2010 09:00 AM

Something bad has to happen soon to keep the U.S. market from going higher, says investment commentator Jim Cramer.

“If we don’t get some kind of Lehman Brothers out of Europe in the next 48 hours, I’m beginning to think we’re going to become a little bit more inured to Europe, just accept the fact that what’s going to happen,” Cramer said Wednesday on CNBC.

“We need a collapse there. If it doesn’t happen soon, it may not happen.”

Price-earnings ratios for some U.S. stocks have been adversely affected by investors’ fears over events in Europe, Cramer notes, but that may have been all for nothing.

“The worst is over,” Cramer says.

He suggested buying financial stocks and said bank shares will go up because Democratic Senator Christopher Dodd, Banking Committee chairman, has made to many concessions to banks in the pending financial regulatory legislation.

“The market is prepared for a Lehman II … without a Lehman II all you’re going to see is a slowdown,” he says.

"Something bad has to happen soon," Cramer said. "Or else [the US] market’s going to go higher."

Dominique Strauss-Kahn, head of the International Monetary Fund (IMF), appears confident that Greece can overcome its current economic crisis and that the austerity program, if implemented, will have a positive outcome.

Strauss-Kahn recently told the Greek newspaper Ethnos that Greeks should change their behavior, and expressed hope that the government’s austerity program will succeed because "it is absolutely necessary at a moment when there is no other way."

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Something bad has to happen soon to keep the U.S. market from going higher, says investment commentator Jim Cramer. If we don t get some kind of Lehman Brothers out of Europe in the next 48 hours, I m beginning to think we re going to become a little bit more inured to...
Cramer,UK,Lehman,Friday,Financials
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2010-00-20
Thursday, 20 May 2010 09:00 AM
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