NEW YORK ( TheStreet -- The situation unfolding in Cyprus is outrageous, according to TheStreet's Jim Cramer.

Debra Borchardt:

Over the weekend we had a raid on depositors funds in Cyprus and as a result that has sent our markets into turmoil. I'm here with Jim Cramer, so let's talk about this. It's really not so much that Cyprus is this little island off the coast of Greece and that it's not that big of a country. The issue is, if they can do it at Cyprus then they can do it to any other country in the EU, and that's a very frightening thing.

Jim Cramer:

Right. I think this is the other way to get at the money rather than crunch the bank debt. They always seem to want to protect the bank debt. I think the bank debt is what should suffer. I have to take...where are the regulators? How did these banks ever get so big? How did they get all this hot money? Why were they paying five percent interest? Why weren't these shut down? Like where is the regulation there? We have very tough regulations. And you read the papers, you always think that we're just not regulating our banks, we are so tough. I just think my friend, Matt Horween was saying to me Jim, you really should just jump up and down and say this was outrageous that it ever got there and now they have to do it this way. And that's outrageous. How could you take it, the guys who have a thousand euros. How could they pay?

Debra Borchardt:

There was ten times the amount of money in these banks than the entire country. We know it's Russia money. There's of course talk that it's Russia mob money, which is why the Russians kind of can't really come in and save these banks.

Jim Cramer:

It's outrageous and I've got to tell you. The idea that they should charge the same thing from a hundred thousand euros down. I mean, come on. And the fact that this came up - so stupid, it's just like dumber than the sequester, and I really feel they have to say if you have ten thousand euros in a bank, they got to just say listen you're getting a pass because, by the way, who has a hundred thousand euros in the bank account? That's gigantic. That's Russian mob money.

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