Cramer had a great post

"When everyone is insolvent, no one is insolvent. If you took all of the loans in the SIVs and the CDOs and you looked where they really reside, if you look at where all the second-liens reside, if you opened up the books to everything, what you would see is massive insolvency across the board. And I am telling you to forget about it. When everyone is insolvent, no one is insolvent. Do you really think it matters?...

I have been saying that for months. It doesn't matter, at a certain point bad is good, and we are at that point. We are at the point I was hoping to avoid, which is a massive bailout of the system because Ben Bernanke got it wrong and stopped cutting in October. Now we will have to spend hundreds of billions of dollars one way or another -- maybe through the implicit guarantee of FNM/FRE -- to make sure the system just doesn't' stop, choked on bad mortgage loans. We have to do that because someone at the Fed said "not this time, we are not going to take rates back down to where the problems began," and they had to, and they got it wrong....."