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.

Debra Borchardt:

Now, they said the parliament has to vote on this. They are delaying the vote. It was supposed to happen over the weekend, then it was going to happen now. Now, I'm hearing it's going to be pushed all the way out until Friday. Ultimately, this has brought us back to Europe. We've kind of pushed that all the way to the back burner for a while. It is now a front burner issue again. Our country is looking at it again. Now, it's roiling our market so at what point are we going to be able to...this has been going on for three years Jim.

Jim Cramer:

The roiling is wrong here. We have to...look...you could have come in very easy today and the market could be down as much as it is. Because we were up, we've been up so much. We were down Friday on a decent employment number. I am horrified that the charts are so straight up because that doesn't work. You can't have what's known as a power ball last too long. I think this is good this sell off. I know no sell off is supposed to be good but we've got to cool this thing. And if we cool because of Cyprus that's fine. I am not worried about our banks. I do worry about their banks, that's why I don't recommend their banks. I think Deutsche Bank ( DB), if you had to get in one. I do think Santander ( SAN) lower is good.

Debra Borchardt:

All right. You always say there's a bull market somewhere.

Jim Cramer:

Well, I just think there's...as I was going back and forth with my friend Doug Kass, in the end, this has nothing to do with the price to earnings ratio of Bristol Myers.

Debra Borchardt:

Okay. All right. So, right now it sounds like you might be stepping back.

Jim Cramer:

I don't like the market. I said, look I want to avoid this last one to two percent. Too dangerous to get, and until we repeal that one to two percent, I am not going to be able to pick at anything other than those that are down, and that's what we're doing at action alerts.

Debra Borchardt:

All right. So, it sounds like Jim's going to take some time, right now, take a pause, wait until the prices get better.

Jim Cramer:

Yeah.

Debra Borchardt:

Wait until the prices get better.

--Written by Debra Borchardt in New York.

>To contact the writer of this article, click here: Debra Borchardt.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

If you liked this article you might like

Novice Trade: The Euro ETF

Novice Trade: The Euro ETF

Novice Trade: Euro ETF

Novice Trade: Euro ETF

Intermediate Trade: CurrencyShares Euro ETF

Intermediate Trade: CurrencyShares Euro ETF

Crazy Weak U.S. Dollar Will Make These 10 Companies Huge Winners

Crazy Weak U.S. Dollar Will Make These 10 Companies Huge Winners

Ridiculously Weak U.S. Dollar Will Make These 10 Companies Huge Winners

Ridiculously Weak U.S. Dollar Will Make These 10 Companies Huge Winners