This Financial Shakeout Was Bound to Happen

Today's ugly action is a culmination of the negatives.
By Jim Cramer ,

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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 The aerospace move is being repealed badly.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) - Get Report

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) - Get Report

and

Raytheon

(RTN) - Get Report

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)

!? 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) - Get Report

and

Citigroup

(C) - Get Report

and

Bank of America

(BAC) - Get Report

and

Wachovia

(WB) - Get Report

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.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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