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Cramer: Contagion Isn't Off the Table

As Greece struggles to resolve its growing debt crisis, Cramer on Thursday said contagion is entirely possible. After all, Europe didn't do the type of stress test that the U.S. did, the "Mad Money" host argued.

"Look, I think the contagion can make sense," Cramer said. "We're stronger than they are, but that doesn't mean we're immune."

It's amazing that two years after we found you can buy a credit default swap on almost any instrument, then torch that instrument and get paid off, that these banks didn't have the collateral to be able to write these contracts, Cramer added. To him, it's like AIG all over again and that, he noted, was a huge bailout.

RELATED: SCENES FROM THE GREEK PROTESTS

So what does this mean for U.S. banks?

Cramer thinks most every bank stock is a 'sell.' Some banks reportedly have more exposure to Greece than others, but Cramer isn't sure the reports are right. So he would stay away from all bank stocks right now.

While regional banks are immune to the Greece debt crisis, Cramer said the banking sector trades in unison. So he would stay away from these stocks until the smoke clears.

(Read More:5 Things Investors Need to Know On Latest Greece Crisis)

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