Cramer: The Danger Is Immense

I am not even going to include the airlines, they are all hopeless in my opinion, except for maybe Southwest (LUV). They are charities.

Other areas have problems -- retail has some busted stocks, and so do restaurants. Chicos (CHS)? Charming Shoppes (CHRS)? How about Macy's (M) -- where's that headed? Sears (SHLD)? OUCH!

You can see some techs folding, but only a handful. Maybe because only AMD (AMD) is on the fiscal ropes do people see "relative strength" in tech, whatever that means.

The problem is that the dire stocks, the ones I have listed, are so numerous and so concentrated with so little hope for rescue that it is hard to imagine anything but more downside for these stocks and therefore more downside for the rest of the market, simply because they are so glaring, are owned by so many mutual funds and have so many roles to play in the real economy.

We know that things have gotten out of control because the IndyMac collapse -- widely predicted -- used a huge amount of the surplus the FDIC has, suddenly making the safety net seem like a flimsy piece of Brawny.

The bottom line here -- there is too much going wrong right now, too much to put us anywhere near sound footing. I suspect that every rally will be met with selling until we see a multitude of collapses like IndyMac.

I am not going to search for positives in any of these groups yet, and if they rally off the decision by the Treasury to make more explicit the Fannie and Freddie guarantees, I would scale out of them once again on any short squeeze like the one we had at yesterday's opening.