Jim Cramer is Way Out on a Limb

Jim Cramer is probably crazy by some definition. I'm not even sure that my saying that would raise many eyebrows.

His position on U.S. banks' prospects today is so non-consensus that he is either dead on or may never live this down.

On RealMoney, theStreet.com's paid subscription site, he wrote the following:

"Is this the beginning of the worst run on financials we have ever seen in this country, or at least since the Great Depression?

Right now, what it looks like has to happen is either a.) the government has to seize most of the banks, or. b.) the government looks the other way and establishes temporary rules to avoid massive defaults. The government can do this; it can say, "From now on until the mortgage crisis is past, we are not going to close you for being short capital. When the crisis is past, we will."
Without this forbearance I see no hope for virtually every bank that has mortgage exposure from 2005 to 2007. "

Hopefully the truth is somewhere in between. Either way, now is not a good time to have more than $100,000 in a bank.