Jim Cramer says if bond insurers MBIA and Ambac aren't bailed out, the banks will fail. Quick - someone call the Arabs!

So yes, they'll get bailed out, even if that means wiping out their shareholders. That will stop the banks from having to mark to market their CDO cancer for another few weeks or months.

But eventually, as sure as night turns into day, some of the banks will have a come-to-jesus moment (auditors anyone? SEC anyone? Sarbanes Oxley anyone?), and they will fail or be taken over for a song. And the most toxic of the toxic lenders - Countrywide, IndyMac, WaMu and First Fed - will be amongst the first. (I'm short WaMu and should be short a lot more of these houses of mortgage fraud).

Here's Cramer's highlights. Love him or hate him, he knows what's going on out there, and he's using his platform to try to influence the bail-out-players now (like he did with his Fed rant).

Bottom line - watch for the Saudis, Kuwaitis and hell any old Arab with coin to come riding in on a pale horse to bail out these turds.

ABK, MBI Need -- and Will Find -- Capital

So let's go find some bailout money for the monolines, for the Ambacs and the MBIAs. Let's just get it. Let's hold hands and make sure these don't collapse because they could take us with them.

That's the tenor right now of the banks and brokers as these two institutions threaten to bring down the whole CDO house of cards.

Yet, still, they are in the "too big to fail" category. If you capitalize these companies, then you can maintain the AAA ratings on the higher CDO tranches and not have to take the hit to capital that would force banks to collapse.

These are the epicenter of ground zero. If you had to save one or two institutions to rescue the system, these two are actually more important than WaMu or Countrywide.

That's saying something.