Ambac Financial (ABK) Files For Bankruptcy

Shares of bond insurer’s holding co. slump 65% after hours.

This is funny, because in April 2010, Cramer was saying that you should "hold your nose" and buy Ambac even though the shares were worthless.

Jim Cramer Says to Give Him "Some of That 'Worthless' Ambac (ABK)"

I can't make this stuff up. I don't subscribe to thestreet.com (laughable), but apparently, Cramer is saying that we should buy ABK even though it has no fundamental value:

Do you hold your nose and buy ABK because of those rallies? I believe, oddly, yes. Now, there is simply no percentage in admitting you would ever recommend a worthless security. But this is a game of performance, not a game of valuation. There are plenty of genuinely worthless stocks that have gone up huge. There are tons of cases where gigantically worthless stocks -- almost every dotcom circa 1999-2000 -- gave you great returns.

What does that remind me of? Oh, how about a little speech called "The Winners of the New World," that Cramer gave on February 29, 2000.

Check and see how that turned out.

And put another mark in the bear market rally, strained positive sentiment, manic, blow-off top that will end poorly column.