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Watch the Falling Banks for an Entry Point

By Jim Cramer

 About this article:
 When is it safe to buy crumbling financials? Why buy them at all? I think it's because Fannie and Freddie, if they become government-owned, in part, will allow for a huge amount of holding of property rather than foreclosing of property, and that will, when coupled with the radical decline in homebuilding, yield stable housing prices. But that's the fundamental issue. The real issue is, can you afford to not make these juicy gains that we have seen in the financials off their bottoms? In 1990, still the best analog, we caught the 50% move, and then we heard endlessly that it was just a short squeeze and it would all be repealed. That's where we are now. But let's use Wachovia as an example. Can anyone let that stock go back to $9 without being in? Or how about JPMorgan Chase? We know the earnings, near...

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