This Financial Shakeout Was Bound to Happen

(Editor's Note: RealMoney is free to all TheStreet.com readers until Monday night. We hope you enjoy this article. If you would like to subscribe to RealMoney, please click here.)

Oh, doctor, is this market getting ugly. That whole big gain in retail is vanishing. The aerospace move is being repealed badly. Boeing's (BA Quote) giving up so much gain, no doubt because of what is perceived to be the end of the American airline business -- people in "Beat the Street" sure think so, and are winning with the strategy. I see pure defense aerospace stocks going down, too: General Dynamics (GD Quote) and Raytheon (RTN Quote) attract me, the latter an Action Alerts PLUS name that's too cheap.

Some of this decline is a recognition that once again the financials are being cracked. No more Fed cuts? More bad loans? All of it. Plus new negatives on the brokers -- failed hedges. Lehman Brothers (LEH Quote)!? Ouch.

The Fed meetings sure don't help, with the idea that the banks have to have another leg down because the employment projections are terrible.

I am watching Washington Mutual (WM Quote) and Citigroup (C Quote) and Bank of America (BAC Quote) and Wachovia (WB Quote) just get killed. No Fed cuts bailing them out this time!

The really nasty action today is shaking out all of those bulls.

It was bound to happen.

At the time of publication, Cramer was long Raytheon.