TheStreet.com TV Recap: Sorting Through the Subprime Slaughter

It's very clear from the American Home Mortgage (AHM Quote) meltdown that market players can't trust any of the subprime-mortgage lending companies, Jim Cramer said on TheStreet.com TV's Wall Street Confidential Web video Tuesday.

"I'm willing to bet that Countrywide Financial (CFC Quote) survives," Cramer said. "I'm thinking that Thornburg Mortgage (TMA Quote) could survive because they did a lot of loaning only to rich people."

Redwoods Trust (RWT Quote) is another exception because it's under 10%, he added. "If you have a stock that has a higher-than-10% yield, then it's not going to make it, or it could be subject to American Home."

Rait Financial Trust (RAS Quote) and NovaStar Financial (NFI Quote), which did a 4-for-1 one reverse split, "are companies that really are at the mercy of banks," he said. "Their futures are out of their control, and when your future is out of your control and in the hands of a Wells Fargo (WFC Quote), which just discontinued its loaning of subprime, then the stock becomes totally uninvestable."

That is because the Wells Fargos of the world "have no interest in keeping you alive," Cramer explained. "They'd rather just take the loss."

More people don't talk about this because it "inspires tremendous panic," but "I don't really care," he said. "It's first man out lives and I want our people to be first man out."