If Jim Cramer's "Mad Money" is playing on television anywhere near you, it's hard to miss. Even when markets are chugging along without event, Cramer's, enthusiasm is loud and animated. But the financial pundit seemed almost somber (for him) on Monday, March 27 when he proclaimed that the banking crisis isn't over yet.
According to Cramer, interest rates will continue to rise -- at least until this mini-banking crisis plays out. But Cramer isn't looking at the eggs, he's looking at the omelet. He says that our greatest chance of a good deflationary event is if a larger bank fails -- specifically, First Republic Bank.
DON'T MISS: Jim Cramer's Fascinating Take on the Sale of Failed Silicon Valley Bank
Now that First Citizens Bancshares (FIZN) has scooped up the debris from the Silicon Valley Bank failure in what Cramer calls a "sweetheart deal," First Citizen stock saw a significant jump.
“This kind of thing only can happen in receivership, after a bank has already failed, because that can eliminate a lot of risk for the buyer,” Cramer said. “Our system simply isn’t ready for a wave of bank failures -- that’s not an ideal solution.”
In order for a bank like First Republic (FRC) to be rescued, it first has to fail, and fail hard. But if First Republic does fall, Cramer believes that will be just the push the Federal Reserve needs to lower inflation rates. And if it doesn't, Cramer thinks we could see inflation hikes as much as 100 basis points.
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