Cramer's 'Mad Money' Recap: Jan. 12

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"This was one awful, horrible day in the the markets," Jim Cramer told viewers of his "Mad Money" TV show Monday.

He said it's time to say goodbye to the government of, by, and for the corporation and hello to the new regime that's not at all friendly to the financial stocks.

Cramer said that when Lawrence Summers sent his letter to Congress today, it clearly signaled that the Obama administration is pro-taxpayer and not pro-shareholder. He said that while the revisions to the TARP plan are morally the right ones to take, they will, in turn, crush the bank stocks.

After last year's countless bank failures that wiped out the common stock, Cramer said the markets had come to rely on the Citigroup (C) model as the standard going forward. Only the Citigroup plan, he said, saved the common stock, and allow investors to invest in the bank stocks without fear.

With today's actions however, Cramer said that fear is back. In order for banks to take advantage of the TARP money, they must now slash compensation and freeze their dividends in order to repay the government first. This, in turn, turns the banks into zombies, said Cramer, "the common stock is a sucker bet now."

"This market needs leadership," said Cramer, adding that leadership will not be coming from the financials.

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