Jim Cramer came on CNBC's Stop Trading! segment today and said that Larry Kudlow's call to cut rates may be listened to because his call to merely cut the discount rate would be an effective measure the Fed could get away with. Cramer even went as far as to call Kudlow the best in the world as far as knowing the Fed. If you are not that familiar with Larry Kudlow, he's the one who, up until the last couple weeks or so, has been the perpetual bull who spouted on about the so-called "Goldilocks" economy.

Countrywide Financial (NYSE: CFC) has funding to 2008 and he'd no longer be short. He'd rather own call options than he would take the risk owning the stock. If I told you yesterday regardless of what Cramer says that Countrywide was tapping an entire $11 billion line of credit, would you have guessed UP or DOWN on the stock? This is horrible news that the company had to tap it, but the good news is that the company WAS ABLE to tap it.

On Annaly Mortgage (NYSE: NLY), Cramer said it is the only mortgage player that doesn't take credit risk. Cramer said shorting this one is an idiot call, even if this can fall when they throw out the baby with the bath water. This is still in the middle of its 52-week trading range and way down from highs of 2003 to early 2006.

How many times can one say "yeah" or "boo" on a call? It seems to me that this is getting to the point where the rumor mill and raw fear can move the market well beyond what the actual numbers could. These financials are up huge, down huge, up huge and down huge again. It's almost like watching "the wave" at a football game where everyone is drunk. The wave starts, then sometimes it stays going and sometimes it falls apart. That is how this feels right now. If we are going to hit a market crash, watch that VIX INDEX over 30 for the first time since 2003 we discussed yesterday. JPMorgan Chase & Co. (NYSE: JPM) and Bank of America Corp. (NYSE: BAC) are up big today, so what gives?

Jon Ogg is a partner at 24/7 Wall St., publisher of Special Situation Investing Newsletter. He does not own securities in the companies he covers.