This post appeared earlier today on RealMoney . Click here for a free trial, and enjoy incisive commentary all day, every day.

Citigroup's ( C) at $1. General Motors ( GM) is at $2. Bank of America's ( BAC) at $3. Do you buy any of these midgets? Do you risk $6 and buy them all, some sort of distressed basket?

First, I think that Citigroup is the ultimate zombie stock, slightly better than American International Group ( AIG), but slightly worse than all but GM. If we get a pronounced, quick recovery in the world's economy, this one could be a worthwhile play because it is not going to go out of business. This one's a long-dated call on the turn. It reminds me of Ford ( F), which is also a long-dated call but a less likely one to be exercised because unlike Citigroup, which is owned by the government, Ford is still in private hands and therefore faces dilution from the government because those sales are so awful. Ford is more of a moving target than Citigroup, with sales down plus-40%, although Citigroup's situation is a capital-eating one and therefore most likely demanding more capital. It would not be this way if the government adopted the Federal Home Loan Bank Board folks' plan (key words Bowers Espy if you want to see it).
Cramer Responds To The White House

So, Citigroup's a reasonable spec and can be held, but I would not expect anything other than erosion. Ford's worse.

GM's going concern note is pretty much the death knell to the common. Here's a difficult one: The bondholders think they own the company, the unions think they own the company, and the government will most likely end up owning the company. That means the common is probably worthless, something that will become evident if, or when, the company files for bankruptcy. Put simply, bankruptcy crams down the common, and I wonder if it won't be outright canceled. There's way too much hope in this $2 stock, and it should be squelched, especially after this morning's news.

If you liked this article you might like

Bank Stocks Move Higher Ahead of Federal Reserve Meeting

All Eyes on the Godfather of Central Banking as Fed Has Huge Meeting This Week

The Stock Market Stinks and the Stench Is Going to Get Much Worse Soon

Financials Trade Close to Flat as Investors Await Clarity From the Fed

Don't Get Shaken Out of Good Stocks: Cramer's 'Mad Money' Recap (Wed 9/13/17)