Cramer on the Mortgage/Housing Crisis

[JustRalph]

http://www.youtube.com/watch?v=SWksEJQEYVU

Cramer is letting loose on this one

[Steve 'StatMan']

Holy $hit.

Glad I refied at a fixed rate. But if this is going like he says, it's going to be hard seeing all the grief going around.

[toetoe]

Who's the babe? :jump:

[Gibbon]

Cramer is the Jerry Springer of our financial markets.
More to the point, Cramer is a retarded cucaracha! No doubt his style gets high ratings but like so many TV commentators, he is an empty suit.

Sure some morons will get carried out! Stupidity is not a crime. Those who must support a low or no money down variable rate mortgage on minimum wage are in serious trouble. This is a good thing for it will restore health in the mortgage sector.

Recall Clinton’s last 100 days in office. Corruption on Wall Street ruled the day. Whether it was MCI-WorldCom, Enron or the inevitable dot com bubble, America did not sink. Ten Trillion was wiped out from Stock markets and we survived. We will also survive the relatively small handful of irresponsible home owners.

Big media is seldom right on anything. The sky is not falling rather; doom and gloom sell more papers, magazines and commercial time on cable news channels. The mild 800 point correction in stocks can be attributed to {at the time} almost $80.00 barrel of oil. As energy prices stabilize {today, oil is down $3.00} stocks will continue their record setting pace in positive and uncharted territory.

Those who bet against America have and will continue to be wrong. American capitalism is the envy of our world!!!






______________________________
Give me control of a nation's currency, and I care not who makes its laws. ~ Baron von Rothschild

[bigmack]

Those who bet against America have and will continue to be wrong. American capitalism is the envy of our world!!!
Lay aside the theatrics of Cramer and know that he is not alone in asking for something, anything from FedChair Bernake to take a measure that might help lessen the blow of a pile of bad paper. There will be a run on foreclosures but how bout a little help from upstairs?

The resilience of our economy is monumental and is far from in question. Like others, The Feds can see where the train is headed and in this case they should help modify the course from the track that was layed from the marketplace.

[Bill Olmsted]

The Fed will keep rates the same after today's meeting--and it should.

[DJofSD]

Gibbon, Cramer has probably forgotten more than you'll ever know about investing. I would not refer to him as big media -- but perhaps I'm wrong.

You make the common error of not being able to separate out substance from style. Sure, he's excitable and often exagerates.

While I did not see his appearance on Maria's program on Friday, he knew he went over the top from his remarks later during his program. And if you happen to have watched the top of his program on Monday, you'll understand there is a justification to his passion.

Love him or hate him, you can't ignore him. It'll be fun and insightful to watch his reaction to the Fed meeting today.

[traveler]

[QUOTE=Gibbon]
Sure some morons will get carried out! Stupidity is not a crime. Those who must support a low or no money down variable rate mortgage on minimum wage are in serious trouble. This is a good thing for it will restore health in the mortgage sector.

Yeah, this is great, sure some dopes bought more house than they could afford, because some shyster mortgage company sucked them into a tease mortgage, but how about the poor guys and gals making next to nothing who thought they might have a chance at home ownership and will lose their home. Healthy as hell.

[Bill Olmsted]

Cutting rates to flood the market with cheap money to bail out hapless Home "Owners" smacks of some left-wing conspiracy to "re-distribute" weath. I thought Republicans were for letting the free market correct itself. No? Instead we have the Jim Cramers of the universe advocating providing welfare to those poor "victims" who were sold a bill of goods by the mortgage industry.

Let the market do it's job.

[DJofSD]

In essence, JC is advocating for the mortgate holders. He is not touting a bail out to provide relief for the banks, mortgage companies or other institutions.

Wealth redistribution? I don't think so. Did you see the program yesterday? I think he layed out his position, what is his motivation and the likely scenarios. If anything, he reminded every one, this is exactly why there is a Sallie-Mae and Freddie-Mac -- creations of the democrats from the 1930's. There are any number of instances of the Fed stepping in instead of letting the market correct itself. Letting the market correct itself is what happened in the begining of the 1900's when bank runs would cause havoc. We now have federal banking laws as a result. Are you suggesting those measures are unnecessary?

[DJofSD]

BTW, where did you get the idea that Cramer is a republican?

[Bill Olmsted]

No, I didn't see the entire program and perhaps my position would be tempered if I had seen the entire broadcast. Your post is food for thought.

[Bill Olmsted]

Hillary just kicked some major butt on CNBC this morning. Even Krudlow was impressed!

I will lay even money that Hil will be the President of the United States, not because I like her, but because that's the way it is.

[DJofSD]

I will not be watching CNBC until later in the day. Perhaps "crackhead" will recap his remarks from Hil-dog.

[Gibbon]

Lay aside the theatrics of Cramer and know that he is not alone in asking for something, anything from Fed Chair Bernake to take a measure that might help lessen the blow of a pile of bad paper. There will be a run on foreclosures but how bout a little help from upstairs? So, individuals make financially irresponsible maneuvers, and the Fed need to play the role of a step father. Hugo Chavez, Fidel Castro et el… would be very pleased. Actions have consequences just like it did in mid 80’s with the savings and loan catastrophe. Big fish know intrinsically to bet big, real big for the taxpayer will bail you out.

How does the Fed lower interest rates. Wave some magic Harry Potter wand and presto, cheap money. NO! Our govt. prints more greenbacks thereby lowering you purchasing power. In other words INFLATION. The asset inflation (http://www.mises.org/fullstory.aspx?control=1579) and tumbling of our dollars on international world currency markets is a direct result of this inflation of currency.

Mack, might you believe your house{s} doubled in recent years due to some underlining value? No! Your currency is worth far less!

"Obe One" Ben Bernanke understands the stakes. He does not wish to politicize the event risking calamity further down the unforeseen road.



Gibbon, Cramer has probably forgotten more than you'll ever know about investing. Unlikely.

I would not refer to him as big media….. He is massive. Cramer’s influence is enormous. Cramer is a devoted Democrat and at Harvard Law School - he and his good buddy, current Governor of NY State, Eliot Spitzer – were and probably still are moderate leftists.

That’s right I said Law school NOT Economics or Business school.

Cramer has stated in several college papers his hero was Lenin. On his now defunct radio show, Cramer repeated his obvious admiration of the American Left.

After graduating with a degree in Law, Cramer's plans to become a prosecutor were dashed when he was rejected by the Southern District of New York. A position which would be occupied by Rudy Giuliani. Cramer lost the job because his law school grades were not good enough. In 1987, Cramer did start and manage a hedge fund. The real genius behind the modern myth of Cramer was his partners. Berkowitz and Michael Steinhardt.

Take care DJ, your guru has flaws. Cramer’s real strength is his cult of personality (http://en.wikipedia.org/wiki/Cult_of_personality).


… sure some dopes bought more house than they could afford, because some shyster mortgage company sucked them into a tease mortgage, but how about the poor guys and gals making next to nothing who thought they might have a chance at home ownership and will lose their home. Healthy as hell. Someone gambles and loses – don’t cry on my shoulder. This mass hysteria that every American can afford a home on limited income is a desire of the mind or heart. Do the math long term; can one afford to maintain a home?

How can a well adjusted adult make the assumption some third party (mortgage lender/stock broker) has your best interest in mind?

Some folks took a gamble and lost!

[DJofSD]

Take care DJ, your guru has flaws. Cramer’s real strength is his cult of personality.

He might be a guru but he's not my guru. There probably is a cult of Cramerites to be sure. Just watch a stock get hammered if he's touted it on his show. Right now my ROT is anything he highlights is off limits for at least 6 months.

Any one that has watched the program more than once likely has heard him state (1) he's buddy-buddy with Eliot -- just look at the photos from the swearing in, (2) they went to law school together, and (3) he's definitely left leaning.

As far as the hedge fund goes, all I know is what he wrote in his book. As I recall he was the guy grinding it out every day and the other two were in the background.

[bigmack]

So, individuals make financially irresponsible maneuvers, and the Fed need to play the role of a step father. Hugo Chavez, Fidel Castro et el… would be very pleased. Actions have consequences just like it did in mid 80’s with the savings and loan catastrophe. Big fish know intrinsically to bet big, real big for the taxpayer will bail you out.

How does the Fed lower interest rates. Wave some magic Harry Potter wand and presto, cheap money. NO! Our govt. prints more greenbacks thereby lowering you purchasing power. In other words INFLATION. The asset inflation (http://www.mises.org/fullstory.aspx?control=1579) and tumbling of our dollars on international world currency markets is a direct result of this inflation of currency.

Mack, might you believe your house{s} doubled in recent years due to some underlining value? No! Your currency is worth far less!

"Obe One" Ben Bernanke understands the stakes. He does not wish to politicize the event risking calamity further down the unforeseen road.

You bring a sound argument Gibs notwithstanding the over the top references to Fidel & Hugo and the apples/oranges take on the deregulation of S&L's which left an environment rife for abuse straight from the institutions to the blue hairs complete with FDIC stickers on every branch door. Federally insured don't you know.

I'll give you that Bernanke & Co have made the right decision today but I'll be back Gibby to do battle another day. Touche' & All the Best.

[Gibbon]

I was merely attempting to point out Wall Street at times is a bastion of capitalism other time – desperate socialist. When fat cat Wall Streeters are in trouble they beg the Fed for relief. Corporate welfare in our nation is just a big as individual welfare throughout ghettos across America.

Americas middle class gets taken to the cleaners every time. And still no repeal of that great evil - ATM (http://en.wikipedia.org/wiki/Alternative_Minimum_Tax) .






_________________________
You are a den of vipers and thieves. I intend to rout you out, and by the eternal God, I will rout you out. ~ Andrew Jackson to a delegation of
bankers discussing the Bank Renewal Bill, 1832

[delayjf]

Just curious, assuming corporations were not given the corporate welfare, what would happen to the employees of that company?

I'm not necessarily defending corporate welfare, only it seems to me that the money does not go directly to the shareholders / CEO pockets but into the Corporate coffers to keep the business running - which in turns translates to jobs for their employees.

[LurkingBettor]

Who's the babe? :jump:

Erin Burnett,.....usually on from 2-3 est, I think. Maria Bart. is claiming Erin is trying to steal her thunder according to the tabloid shows. Might get interesting.

Now, back on topic.......

[Gibbon]

Just curious, assuming corporations were not given the corporate welfare, what would happen to the employees of that company? In that dome of monkeys we call congress - industry with large cooperate welfare packages are also interestingly enough, the ones who lobby excessively ….. Read kick backs, I mean donations to elected officials.

Farm subsidies, Banking and Insurance, Petroleum {Exxon-Mobile} industry and Pharmaceutical companies contribute {kick back} more then all other businesses combined. This is not economic capitalism nor economic democracy.

Without taxpayers subsides {corporate welfare} poorly managed businesses will fail. Well managed industries will benefit from a fair playing field.

Workers will simply move. I for one enjoy the incredible success of Japanese motor companies. Choice is freedom. American motor industry deserves to pay for such limited sight. Not to mention poor quality rust buckets of the ’70’s and ’80’s. GM did it to themselves. Without generous tax relief GM would have declared bankruptcy three years ago.


....directly to the shareholders / CEO pockets but into the Corporate coffers to keep the business running - which in turns translates to jobs for their employees. It is certainly true any well run company needs operating expenses and cash on hand for future investments. But the torrents of cash at Microsoft, Exxon-Mobile, Walmart, etc... only encourage monopoles and oligarchies. Resources in the hands of a few can only translate into economic slavery for the masses.

This is not capitalism envisioned by Alexander Hamilton or Thomas Jefferson.
We need more economic freedoms not less. What govt. giveth - govt. takes away.




_____________________
It's not tyranny we desire; it's a just, limited, federal government. ~ Alexander Hamilton

Congress can raise taxes because it can persuade a sizable fraction of the populace that somebody else will pay. ~ Milton Friedman

[skate]

DJofSD and Gibbon;

Both have good points

i think Cramer is a good man and he sure as hell knows his stuff...:cool:

the USA economy is at the top of its game, period...;)


the only problem, as me sees, the economy as a whole (hole or not)i s far superior to any economy of the past or present (other countrys).
so, that is not the problem, but what would be considered a problem is the fact of division (rich poor).

SO, if it was not for the Division, we would have people with ONE TV and people with ONE CAR and then we would have people with NO tv and no car.
But because of the Large Division, we have people with three TVS and three cars (they are the poor ones) and we also have people with twelve TVs and seventeen cars etc and ect.:kiss:

[skate]

What would happen to the employtes?


good question, but not precise enough for a precise answer.

it would depend, on the time and the size of the company. and it depends on the type of business of coarse.

also, all the problems are not the fault of the people in "the Dome".
most of the "problems" are local.
most of the problems stem back to "the people " themselves.
less competition , less union and glorification of "whatever" cause problems, but the Dome Itself is not a problem.:)

[Secretariat]

Just curious, assuming corporations were not given the corporate welfare, what would happen to the employees of that company?

I'm not necessarily defending corporate welfare, only it seems to me that the money does not go directly to the shareholders / CEO pockets but into the Corporate coffers to keep the business running - which in turns translates to jobs for their employees.

Amazing to read this from a right winger and free marketeer.

If a corporation is inefficient I always thought capitalism punished that corporation for its ienfficiency in a free market system. Thousands of corporations have gone belly up, and not been baled out by the good old federal govt having to "help out" with taxpayer money.

Now when a corporation sends jobs overseas, I don't see corporate welfare given to the company to keep jobs here for workers being laid off due to outsourcing. And rightly so, they shouldn't.

Corporate welfare in a free market system should only ever be an issue in a national security situation.

Trickle down is a theory that once again has proven to be a myth. 1/10th of one percent today make more than 50% of all Americans combined. The top 1/10 of 1% now make more than the JP Morgan barons just before the Great Depression adjusted for inflation. Corporate welfare is not trickling down to workers as median wages for the last six years have been below inflation growth.

I would like to see some figures by you showing that corprate welfare has lead to a) a significant increase in American jobs for a company and b) has lead to higher benefits and wages for the rank and file of that company as opposed to trickle down theory.

[skate]

the trickle down is the result of more people having THREE TVs AND THREE CARS and (TO TOO also asin TWO)


friggggin houses,but it takes a fool to cover his/her own eyes:p hello!

[skate]

to conclude that Trickle down dontint work the fool says "it didnt work because others (the rice and famous:cool: ) have too much more than "I" do".


While the inteelligent bastard says "lokk where i am now, as compared to yesterday";) :lol:

[Secretariat]

to conclude that Trickle down dontint work the fool says "it didnt work because others (the rice and famous:cool: ) have too much more than "I" do".


While the inteelligent bastard says "lokk where i am now, as compared to yesterday";) :lol:

Skate,

You see the world from the top looking down with the 1%. I see it looking up with the other 99% of the people.

The 1% says, "hey I provide jobs for people with my wealth - be grateful". The 99% says, we work our butts off for wages that aren't keeping up with inflation, and diminising benefits and pensions and and put in higher productivity all to make your wealth grow.

We'll never see the world the same.

[robert99]

I agree on the big fish inevitably being bailed out by the taxpayer.
I would not be so hard on the poor guys trying to own a modest home and now faced with foreclosure.
If that were the only problem ... Many of these people have had multiple bogus loans taken out on the same property by these brokers and loan sharks. The loans have been sold on to hedge funds and banks all over the world using complex instruments that they now admit they do not understand. Three hedge funds claimed zero exposure last week then found they had to close this week as bankrupt. They cannot even state that it is just the original genuine loan that is worthless - they cannot tell the multiple bogus loans from the genuine ones and who picks up the fraud tab. The good company stock is now being fire sold off with the bad companies and it is effecting pensions worldwide of people who have never heard of sub prime loans in USA and did not know they ever had anything invested there.

[skate]

Skate,

You see the world from the top looking down with the 1%. I see it looking up with the other 99% of the people.

The 1% says, "hey I provide jobs for people with my wealth - be grateful". The 99% says, we work our butts off for wages that aren't keeping up with inflation, and diminising benefits and pensions and and put in higher productivity all to make your wealth grow.

We'll never see the world the same.

ok ok ok, you see, i agree with your premise.

i get confused when you put Me looking down from the top. where do you have me viewing FROM, the top?
what, i am "the 1 %"? or part of the 1 %?

and and and, that 99% is No Way on "A" bottom. my points, this issue is not as black and white as you say.

the problem and solution is also Not black and white.

the problem stems from the people "that do not have". the problem does not stem from the people that "Do" have.
the people that "have" (for the most part) are doing what is correct.
while (for the most part) those that are on a lower scale are either starting, lazy (me), dont really care(me again), not organized, whisky-whiners, or children.

[skate]

Sec;


what i see (concerning the housing market) is the fact that More people are able to purchase a home.
the cause for more people being able to purchase did not come from the So Called Bottom.
rather, it did come from the people that have some money (banks etc.). thats what made money capable for the people to make a purchase. that is the trickle.
when the people receive the trickle, they Must handle the trickle with some responsibility, they did not.
the people that made the money available, are not at fault.

[skate]

the fact that people fall behind other people is not the fault of the people that are doing doing well.

a huge step, although maybe too late, to equality is being taken at our boarders.
the fault of the labor people is the labor people themselves.

the problem is big business, gov. Dem & Rep (VOTERS) and the media, ALL of which the Friggin Voters Glorify. and and and, that aint ME (the skate)

[wonatthewire1]

<<Just curious, assuming corporations were not given the corporate welfare, what would happen to the employees of that company?

I'm not necessarily defending corporate welfare, only it seems to me that the money does not go directly to the shareholders / CEO pockets but into the Corporate coffers to keep the business running - which in turns translates to jobs for their employees.>>>



And the same could be said about taxes - as taxes pay for the school teachers, the road crews, the sanitation people (in many locales), the CIA and FBI dudes, our "elected" officials", etc, etc...

Yet we're the first to decry taxes in any way, shape or form... :bang:

[traveler]

the fact that people fall behind other people is not the fault of the people that are doing doing well.
While that may be true in some cases, I would disagree in many. The only people doing well are those at the top and government workers(?). Those at the top, ie: manaegment have no interest in seeing their employees do well if they can squeeze out another few cents of dividend increase or to boost the share price. If they can increase those they and the boards and the rich will benefit much more than the guy with a few shares in his 401K. Years ago an average guy in Pennsylvania had a chance to change jobs and get ahead but not much of that now. Sure there are jobs available, but in general with less benefits. Now when a job is advertised with health insurance and a retirement plan it means you get to chip in for your health insurance if you can afford it and that 401k plan, you get nothing from the company unless you kick in. Lets face it teachers in PA. are retiring with pensions of 75-80% of their pay add any savings and SS and they make more than they ever did working. Yet the auto companies and airlines cant afford these benefits anymore but not a problem for government as they don't have to pay for anything, just say it is in the contract and send the tax bill out.So my 2 cents says many making it are making it on the backs of the poor slob via increased taxes beyond inflation, wages increasing below inflation and benefits disappearing.

[skate]

<<Just curious, assuming corporations were not given the corporate welfare, what would happen to the employees of that company?

And the same could be said about taxes - as taxes pay for the school teachers, the road crews, the sanitation people (in many locales), the CIA and FBI dudes, our "elected" officials", etc, etc...

Yet we're the first to decry taxes in any way, shape or form... :bang:

won...

sure sure sure, it is easy to agree with what you say, that is, the gov needs money to run, agree.

what needs more attention is :
1) countries doing much better (Ireland, etc.) after lowering taxes.
2) the USA reaping more revenue, after lower taxes.

the lower tax, gives insentive, stimulates growth.

3) more debt and lower tax equals growth.

5%-10% debt with 10% tax should suffice:cool:

expansion in the GDP (growth), due to debt (the only way to expand) will give an overal increase in tax collected.


i get excited, when i here "flat tax" and "solid breast".

[skate]

While that may be true in some cases, I would disagree in many. The only people doing well are those at the top and government workers(?). Those at the top, ie: manaegment have no interest in seeing their employees do well if they can squeeze out another few cents of dividend increase or to boost the share price. If they can increase those they and the boards and the rich will benefit much more than the guy with a few shares in his 401K. Years ago an average guy in Pennsylvania had a chance to change jobs and get ahead but not much of that now. Sure there are jobs available, but in general with less benefits.

i am so so so much on top of what you say here;)

i am Your Number One example and recipient of Poo-Poo from Big business and our gov.

some companys care, HP, one example, last i looked.


so what you and i are saying, for the most part, i agree:jump: .


my reason for saying "people are the fault", they are the ones that work OR don't work (union) and they are the ones that Vote.
so whos at fault?

please, do not hand me anything else.

who is at fault?

what it sounds like to me, (go back 50 years) we have a playing field. the field is more even than at anytime in the history of the World.

if you will. team "A" is big business and team "B" is the working person.

Team "A" scores and team "B" cries out "your cheating". bs, baby:cool:


it is not the other teams fault for scoring.

if the Ref (gov.) is wrong, you vote em out and play the game.

simple enough.

[skate]

traveler;

what i see to be the path for big business and the gov. is cheap labor.

women into the work force. did not have to be. mom could have driven a truck many years ago, if she wished..


we have laws to protect our boarders. we have votes.

local cities and towns give sanction to cheap labor, we have votes.


congress, still, wants free boarders, and we still have our votes.:bang:

whos fault?

[Gibbon]

...And the same could be said about taxes - as taxes pay for the school teachers, the road crews, the sanitation people (in many locales), the CIA and FBI dudes, our "elected" officials", etc, etc... This is precisely why the framers of our constitution wrote a document to limit the size and powers government.

Thomas Jefferson said, "The natural progress of things is for liberty to yield and government to gain ground."

What we have today is a bastard mix of capitalism in some sectors and socialism in other sectors. I fear for future generations for they will become depended {slaves} on govt. for most everything.

With reference to your tax commentary, you may not be aware of America’s tax history. Income tax became a permanent fixture on American consciousness during WW1. Our founding fathers were almost all tax evaders with some really good reasons. Tax History (http://www.lewrockwell.com/orig2/adams7.html) America is a land of taxation that was founded to avoid taxation!





______________________
The current tax code is a daily mugging ~ Ronald Reagan