Analysts seem to be dropping all the banks to a "sell" rating. If there are no banks left to downgrade between now and year end, Cramer said, "maybe you have a tradable rally in the worst stocks in the world."
Mortgage losses could total anywhere between $200 billion and $400 billion, former Federal Reserve Chairman Alan Greenspan said recently(sub required). According to Cramer, the low end of that range is already priced in the financials, so it might be worth investing in some of these stocks.
Cramer likes Bank of America because, while it has lots of home equity exposure, there are other parts of the business that balance that out. The deposit base alone makes BAC money.
"I would say they're not as bad as the other guys," Cramer said.
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