Next, Fix the Autos

With the focus off the financials, the world's attention will now turn to Ford (F - commentary - Cramer's Take), GM (GM - commentary - Cramer's Take) and Chrysler because those are the Main Street equivalents of Morgan Stanley (MS - commentary - Cramer's Take), Wachovia (WB - commentary - Cramer's Take) and Citigroup (C - commentary - Cramer's Take). They all need rescuing or government support, according to both analyst reports and the pricing of their bonds. We have strong banks now that can absorb weak banks, we have banks no longer on the critical list, but all we have with the motors companies is some lower oil prices that haven't done much yet to jump-start sales.

The problem with all three of these is that they are investment pariahs that have to be kept alive because there are too many jobs at stake and too many states at stake. They have to be merged or receive stakes in them the way that the banks just got stakes.

That's because while the banks' recapitalization takes off the Great Depression, saving the Big Three will moderate the recession that is on the horizon.

First, because of the crisis anything is possible. At one point it would be ridiculous to propose that the big automakers all merge. There were actually issues like antitrust. But we have seen in the banking crisis that such niceties mean nothing. For years we would not let banks own more than 10% of the country. Now with Bank of America (BAC - commentary - Cramer's Take) and Wells Fargo (WFC - commentary - Cramer's Take) and JPMorgan (JPM - commentary - Cramer's Take), we have pretty much carved up the country, and it isn't done.

So why not let all of these merge? Of course, that merger would eliminate a lot of jobs but it would keep one company alive and would end the possibility of that company going under, because it can just be underwritten like an Airbus.

Of course, all of this is so fantastical as to be ludicrous to believe it must happen, but the bonds of the Big Three say the alternative is a reorganization of each of these -- although Cerberus always says things are great at Chrysler -- that leaves three ailing hulks that still won't make it.

Regardless, we need something in autoland to survive. Look for a dramatic move, aided by the government, to roll these companies up, or look for the worst that could happen, and a recession coming right on its heels, fixed banking system or not.

Random musings: Not a crisis like the autos, but the president or someone with some authority in government has to step in to solve this Boeing (BA - commentary - Cramer's Take) crisis. ... Run to Rick Bensignor's column about the market and how it is all craps; it is just the most definitive thing I have seen about the era in all of its non-glory.

At the time of publication, Cramer was long Morgan Stanley and JPMorgan.

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