Jim Cramer's Best Blogs

Somehow we delude ourselves into thinking that the goal is to punish the wrongdoers or assure that it will never happen again, as if somehow the crisis is past and we didn't just lose Washington Mutual (WM Quote) or Wachovia (WB Quote) and are about to lose other obvious ones that I don't even have to name anymore. The notion that somehow we can punish while we are still trying to fix this situation is just ridiculous.

So, here's an optimal outcome: Most of the banks quickly collapse in the country. We devolve quickly to a Fortress Four: Bank of America (BAC Quote), JPMorgan (JPM Quote), Wells Fargo (WFC Quote) and U.S. Bancorp (USB Quote), plus perhaps Citigroup (C Quote) after this Wachovia debacle. All the others are allowed to fail. We then make it so that deposits are insured up to $2 million, and beyond that a fee scale gets put in to insure large corporate depositors.

Then we shut everything else down and start over with transparency.

We handle the job losses as best as we can, try to contain them to 15% to 20% of the economy; credit will be virtually nonexistent, because other than the banks above, few people willing to put their money in Treasuries.

And all the bad actors will be punished! Along with all of the good actors, of course!

Now there's some justice!

I hope everyone will be very, very happy that the bad actors got what they deserved.

It should bring a smile to everyone!

At the time of publication, Cramer was long JPMorgan.