Enter multiple symbols separated by commas

FDIC Key to Stop Banking Collapse

The Federal Deposit Insurance Corp. needs to increase its guarantee limit right now, Cramer said during Monday’s Stop Trading!, to stop a collapse in banking.

The Mad Money host has said before that the FDIC’s $100,000 deposit insurance might have been suitable for the Great Depression era, but not the 21st century. Cramer’s calling for that limit to be increased to $1 million. He also wants to see corporate accounts, which carry with them much more money, insured for a fee, even if it’s as small as 0.1%.

This, Cramer thinks, would “temporarily freeze” the massive withdrawals that are hurting so many U.S. banks. Goldman Sachs , JPMorgan Chase, US Bancorp and Wells Fargo were all down in Monday trading. The move could serve as a much-needed crutch until the market’s main problem – mortgages – is worked out. Apparently, that won’t be today, as Congress voted down the proposed bailout bill Monday afternoon.

Otherwise, Cramer said, “we’re going to go down another 2,500 points, and we’ll go down that 2,500 points rather quickly.”

There’s a “jarring lack of confidence throughout the system,” and Cramer doesn’t want to see the market “destroyed” over the next 72 hours because of today’s vote in Congress. The FDIC, though, despite all the failures we’ve seen recently, does seem to still hold the trust of both the market and the average American.

“So maybe that’s the agency we bank with,” Cramer said, “while we get through this period.”

When asked what his one message to the American people would be, Cramer replied that sometimes you have to vote against the popular perception. Because often that perception is “not knowledgeable or sophisticated.” This is one such case.

“Any sophisticated analysis indicates that we’re about to lose our banking system,” Cramer said, “if not the Western world’s banking system. So just forget about the cutting your nose off to spite your face. We have to do this. We have to do this because we don’t want 20% unemployment, because we do not want a repeat of the Great Depression.”

Jim's charitable trust owns Goldman Sachs.

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

Cramer's New Book