Kicking LEH When It's Down Sure Is Fun, Huh?

Let's play whack-a-mole with the defenseless Lehman (LEH - commentary - Cramer's Take). The put-buying, the short-selling to knock it down is causing the usual panic, made worse by margin-selling in the name as the velocity of the stock's decline is causing margin clerks to demand more margin in the spot.

The stock is helpless. If Dick Fuld couldn't quell the rumors after that excellent quarter, he sure can't do it now. The short-sellers, who do not need upticks, have loaded themselves up with puts and are now blasting it down with impunity. They are having a field day, and it must be quite fun to do.

Cramer: Lehman's Too Risky Now

I know I am not going to defend it. I went out two weeks ago and said, "Your money is fine if you are at Lehman and you don't need to wire it out," which is what caused the run on Bear (BSC - commentary - Cramer's Take). The result is an endless campaign to discredit me even as I did not like Bear's stock and made it clear that the bonds were signaling that the common could be worthless.

This kind of thing compels people in the media to suggest that people should pull their money out AND to say that Lehman common is worthless. There is nothing that comes with being wrong on that, and nothing but glory if you are right.

I am mindful that these are precarious times and that nobody's word is worth anything. I know that Lehman stumbled badly in the mortgage markets, but I don't know how levered they are.

I will point out though that all you need is a couple of competitors of Lehman to say they won't trade with Lehman, plus a few rumors that you can take your money out or else, and that's all she wrote for Lehman.

Seems so unfair. But there will be there will be tremendous laurels for media people who say that Lehman is going down, and no plaudits for those who would say, as I would, that your money is safe at Lehman even though I don't like the stock.

As much as it would be great to pile on, I have too much respect for Dick Fuld.

Avoid the stock; the raiders are in charge. But remember -- your deposits will be safe, and Goldman (GS - commentary - Cramer's Take) can buy it tomorrow if it comes down to the crisis that the shorts want to and can precipitate.

One day the SEC will recognize that the power of the hedge funds coupled with the slippery slope of allowing ETF short-selling -- which then made it clear that the uptick rule for individual stocks was now quaint -- has brought on a rather easy thing to do: cause a run on a stock.

I hope everyone's happy with it. It sure makes it the easy call to pile on, gang tackle and drive Lehman to the $20s, which would then simply destroy the company. Forgive me for calling it a shame. Maybe I am just a fat cat Wall Streeter after all who doesn't partake in the joy of destroying a well-run firm that has a good reputation, one that is much better than Bear's.

At the time of publication, Cramer was long Goldman Sachs.

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