Cramer's 'Mad Money' Recap: Doomsday Scenario

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Jim Cramer "out-beared all the bears" and gave the worst-case scenario of what could happen to the market on his "Mad Money" TV show Monday.

"This is not my possibility," he told viewers, but this is what all the bears are saying could happen.

"There are three groups of stocks that are in trouble, to say the least," and they're all centered on borrowing and lending money, Cramer said. The first "crisis point" is the home builders.

"These are a total mess," he said. "The only one that doesn't seem like a complete disaster is MDC Holdings (MDC Quote)."

DR Horton (DHI Quote), Pulte Homes (PHM Quote) and Toll Brothers (TOL Quote) can't be touched. But the worst part is that they're still building houses, Cramer said.

Crisis point No. 2 is the financials, he said. Loans are resetting at much higher rates, and Cramer predicts in his worst-case scenario that 50% of home buyers who took out loans will simply walk away from those loans. Plus, yields could get cut or vanish completely at these big lenders, he said.

Cramer said that he's not telling investors to leave the market, "but you can't own anything that even walks by a mortgage."

The third and final crisis point is the brokers. The worst case here, Cramer said, is that the brokers could lose their mortgage business and that "all of these could suffer huge." Companies that need financing are vulnerable as well, he said.