Cramer on BloggingStocks: Dubai story lacks legs

As painful as it might seem to those who wanted to use Dubai as still one more pillar to the bear edifice, the story just doesn't have legs. It was sexy -- Middle Eastern bubble blown up. It has global intrigue. Will the UAE bail them out? Will fundamentalist politics play a role?

It had oil implications -- will the other states pump more to make up for their oil-impoverished friends? Will Dubai bring down JPMorgan Chase (JPM) (Cramer's Take) and Goldman Sachs (GS) (Cramer's Take) the way it seems to be bringing down Royal Bank of Scotland (RBS) (Cramer's Take)?

The sizzle, though, didn't have a lot of steak to it. Another borrower blows up; yawn. Another bad loan by RBS; those guys should have been nationalized. Another black hole that Citigroup (C) (Cramer's Take) walked into.

But that's about it.

I know that there can be some reverberations just like in an earthquake. Some post-quake tremors. Aftershocks. But this quake itself was a 5 on the Richter scale and the aftershocks won't be 6s or 7s.

However, here is what Dubai did do, and it is something that I should have talked about last night: It brought out a whole new wave of short-sellers who bought December puts like mad and shorted tons of stocks, everything from the big infrastructure and machinery plays to the oils and the banks, notably Goldman Sachs which has done a lot of business in Dubai.

When it became clear by late afternoon that the banks were in the clear you saw the short-covering rally in the banks finally develop -- the first one in ages.

I think it continues today.

Once again, we got an event that was blown out of proportion because the system is now stronger than it was and can handle it. Once again we got the big shorts that so many moves back up hitch a ride on.

Oh, and one other thing: When the guy at the Apple store asked, "Well, what should I do now?", I told him to look around at the throngs in the store on a Monday night and then ask himself what to buy.

At least with Apple (AAPL) (Cramer's Take) you know you don't have a one-day wonder.

Jim Cramer is co-founder and chairman of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long JPMorgan and Goldman Sachs.