Thursday, March 12, 2009

Total Banking Armageddon.

Cramer said if you wanted to destroy all the banks and create a total banking Armageddon, there are three things you would do.
First, you'd keep the ban on the uptick rule, which would eliminate the fear in the markets and keep short sellers at bay.
Second, you'd keep the strict mark-to-market rules so the banks would be forced to liquidate assets rather than loan more money.
And third, you'd demonize all bankers, treating them all as crooks, driving the wedge of mistrust in even deeper.
These three things, Cramer said, are what you'd need to do to create a total collapse in banking. Ironically, he said, these are precisely the current rules of the day. and that needs to change. "If we don't change," said Cramer, "all of the major national and regional banks are going to fail."


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