TheStreet.com TV Recap: The Crucial Last Half-Hour

Insolvent Unless Proven Otherwise

Cramer said he regards subprime lenders NovaStar (NFI Quote), New Century (NEW Quote) and Fremont General (FMT Quote) as "insolvent companies, unless proven otherwise."

"These companies have been very adept at hiding a lot of problems," he said. "When I say hiding problems, I'm saying I see illegality.

"The way illegality is defined in the country is that anyone in the Justice Department can go after any one of these guys right now," he continued. "They're subject to being prosecuted."