Cramer: Let Greece Default

As several leaders called for Greece to avoid debt restructuring and move forward with austerity measures, Cramer on Monday took a different view: Let Greece default.

"If they're weak, let's fold 'em up," Cramer said, arguing Greece is impeding the world's economic recovery. "We can't let this one country create this hostage situation because what happens is it's bringing down Germany and France now. Let's just own up to it and move on."

If leaders allow Greece to default, Cramer said the markets may actually rally. Default is not the end of the world, he noted. After all, Argentina has defaulted several times and it's still around.

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The "Mad Money" host also downplayed how a Greece default may impact the euro , going so far to say, "it doesn't matter." To him, the world's overall economic health is more important. He thinks Greece's debt troubles are "holding us back."

The focus on Monday remains on whether Greece will receive another handout. Many investors fear that if Greece restructures its debt, Ireland and Portugal could follow suit.

—CNBC.com contributed to this report

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