Citi, GM Downgrades Opened the Floodgates

Wow, Goldman really killed us with these sells. Of course, that's blaming the messenger, but you have to admit that this is a powerful down-leg caused by rumors of imminent bankruptcies by many firms, including the two that became conviction sells today: Citigroup (C - commentary - Cramer's Take) and General Motors (GM - commentary - Cramer's Take).

In truth, it makes sense. Both of these companies are simply in dire straits and equity shy. Both need to run to Saudi Arabia right now! Where is that sovereign fund?

I have said forever that there is little hope for these two. They are too big to fail, but that doesn't mean the equity won't be debased beyond recognition.

That's what I see happening. That's why we are down so much. That's why I think the bloodletting is not over.

Brutal at the end of the quarter. Total violation of etiquette.

But right no matter what the time.

And the dismantling of value investors and bottom-fishers continues apace.

Random musings: How long before people think that Countrywide (CFC - commentary - Cramer's Take) will be shut by regulators? This isn't an E.F. Hutton, which went under on an indictment, but how much longer can the national prosecutors ignore this one?

At the time of publication, Cramer had no positions in stocks mentioned.

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