Are the recent failures of Bear Sterns, Freddie Mac, Fannie Mae, Lehman Brothers and AIG the result of financial terrorism? Jim Cramer is on CNBC asking that question now. Interesting question and it will require much deeper analysis by the agencies that regulate the markets than the physical attacks in 2001 took to determine terrorist were involved. Let’s not give the terrorist too much credit, but let’s explore the concept for a moment.

The US got itself into the poor financial situation it is in now. Picture us driving to the Grand Canyon, getting out of the car and walking over to the edge of the canyon. At that moment we are in control – able to peer over the edge to get that sinking feeling in the pit of your stomach. The financial terror theory says that we were right on the edge – safe, but balanced precariously. Getting pushed over the edge would take an outside force – the theory being that internal controls would stop an accidental stumble or trip.

What if an unfriendly nation or well financed group were to conspire to push hard enough to send the markets over the edge into a cascading series of events that were difficult, if not impossible, to stop. Further, what if in the process of sending the US and world markets into turmoil, the organization was to profit from their actions. This type of terrorism would be diabolical, as it would not only strengthen their cause, but they would benefit financially. Shadows of this type of strategy surfaced during the terrorist attacks in 2001, but certainly nothing of this scale. The targeting of New York city was a message to the capitalists and their hopes were to impact the free markets. That strategy failed.

Perhaps that failure prompted them to think harder and the opportunity presented itself when the US markets were weakened by the failures of Bear Sterns. Is it possible that a wicked plan was devised using fire to fight fire? That an unfriendly group has hammered the US financial system to the point where Americans are asking “Is my money safe in banks?” A general run on banks would certainly help push the US in deeper financial turmoil?

Golly, it is a bit more than I can imagine actually happening. Is there any group or nation that would be able to pull this off covertly? Overtly, certainly – without a doubt. But working within the system? I don’t really think so.

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