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The Banks Can Move Higher -- Here's Why

By Jim Cramer

 About this article:
 Is this crunch time for the banks? I know from looking at the chart of the KBW Bank Index (the BKX, the one I use) that we could be headed for a total breakdown of the group. But I want to go the other way. This morning I read that Jamie Dimon is quoted in a press release on JPMorgan Chase management changes as saying, in part, "with the credit crisis largely behind us and the economy recovering," and I am taking him at his word, which has been pretty good the whole time. If the crisis is largely behind us, then you should begin to see some sort of normative price-to-earnings multiple developing and, of course, much better earnings themselves. Remember, I think the pattern is similar to 1991-1992, where you had a huge move, then a slight move down, and then an explosion up --...

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