TheStreet.com's Jim Cramer says that now, teetering financials and homebuilders will topple and safety plays will rule. Ouch.

Couple of tough days ahead. We were overbought going into this Fed decision; now we will have to pay for it, and pay for it big. We have to lose a lot that we gained, expecting that the Fed would work hand-in-hand with the Treasury Department to get us out of this jam.

But that's not going to happen now. You can see what will happen. They will kill the banks again. The fundraising that was going on will be halted. We will get some failures. The homebuilder credit lines? Some will not be extended.

TheStreet.com's Jim Cramer says that as counterintuitive as it seems, there are many stocks that will rise despite this huge bad news.

We're back in 1990 again. That was when commercial construction threatened to wipe out the U.S. banking system and the S&P 500 went down 13% in a heartbeat between the spring and the fall.

I trotted out this analogy in the summer to explain what a disaster could look like if the Fed, which at that time knew nothing, didn't do anything or, heaven forbid, did what the clueless Bill Poole wanted them to do, and tighten.

The market's been fighting with 1990 ever since. When I read about the losses and the need for the banks and the insurers to shore up capital -- $7.9 billion for Merrill, Dougie? Say it ain't so! -- I think to myself, "Oh my, it is 1990 when funding became a problem for every major bank." (Tremendous credit to my friend Doug Kass for flagging this.)

MOST NOTEWORTHY: VMWare, Validus Holdings and Hologic were today's noteworthy initiations:

• VMWare Inc (NYSE: VMW) was initiated by a host of firms: Banc of America believes the current valuation captures most of the upside potential, and started shares with a Neutral rating and $75 target. Wachovia started shares with a Market Perform rating and Deutsche Bank started shares with a Hold rating and $80 target on valuation. The stock was also started with a Buy rating and $92 target at UBS, with a Buy rating and $100 target at Citigroup and with an Overweight rating at JP Morgan and with a Neutral rating at Merrill Lynch.
  
• Validus Holdings (NYSE: VR) was started with a Buy rating and $29 target at UBS on valuation and benefits from the Talbots (NYSE: TLB) acquisition. Shares were also initiated at JP Morgan with a Neutral rating.
  
• CIBC resumed coverage of Hologic Inc (NASDAQ: HOLX) with a Sector Outperformer rating and $77 target as the firm is positive on Hologic's merger with Cytyc Corporation (NASDAQ: CYTC) and views it as one of the top mid-cap stories in the coming year.

OTHER INITIATIONS:

• B. Riley initiated shares of EuroBancshares (NASDAQ: EUBK) with a Buy rating and $10 target.
  
• Rodman resumed coverage of Ziopharm Oncology Inc (NASDAQ: ZIOP) with a Market Outperform rating and $8 target.
  
• Citigroup started shares of Timken Company (NYSE: TKR) with a Buy rating and $43 target.
  
• MercadoLibre Inc (NASDAQ: MELI) was initiated with a Sector Perform rating and $39 target at RBC Capital.