To say the story of Lenny Dykstra's financial collapse is an embarrassment to Jim Cramer would be a WEE bit of an understatement. If you don't know the story, start by reading Steven Malanga's piece on RealClearMarkets this morning.

Then watch this clip of Cramer being interviewed by Bernie Goldberg last year showering Dykstra with praise as "one of the great ones in the business." It's a doozy:

(Here's a clip of Goldberg's follow up piece on Dykstra, who's now $30 million in debt and mumbles profanities about everyone who's suing him, which aired recently on HBO.)

If you remember, Cramer's credibility took a hit for urging people to buy Bear Stearns just before the company went poof.  He explained that away - to the extent he could - by saying that the CEO misled him about Bear's financial situation.

Lenny Dykstra is a different case. Cramer is either a gullible boob or a startlingly bad judge of talent.  Cramer acknowledged in the interview that it was hard for people to see an "unsophisticated" former jock like Dykstra as the financial genius Cramer claimed. It seemed, as Malanga wrote, "too good to be true." And that's exactly what it was.

UPDATE: John Stewart piles on.