Cramer: Banks Could Go the Way of the Home Lenders

Is it time to think about the unthinkable? Is it time to think about major bank failures?

Let me give you a thought. A year ago, I posted a list of the Mortgage Dirty Dozen on this site and I predicted the unthinkable: that they would all be obliterated in the coming year.

Let's see how 10 of them have done from one year ago:

• IndyMac(IMB Quote): $29 then; $4 now.
• Centerline(CHC Quote): $19 then; $4 now.
• Friedman Billings(FBR Quote): $5 then; $2 now.
• Fremont General(FMT Quote): $7.40 then; now, pretty much nothing.
• Redwood Trust(RWT Quote): $54 then; $30.75 now (good one!).
• Newcastle Investment(NCT Quote): $27 then; $8 now.
• Gramercy(GKK Quote): $30 then; $16 now.
• RAIT Financial(RAS Quote): $29 then; $5 now. Accredited-purchased-incredible, and well done!
• Thornburg(TMA Quote): $23 then; $1.54 now.
• CapitalSource(CSE Quote): $24 then, $14 now.

...