What is Digg?582 Comments
- punchinelli, on 10/10/2007, -19/+304Jim Cramer has been, and always will be, my hero. Ever since I saw him start throwing furniture on his show I was hooked. Watching his show is sort of like watching someone slowly go insane.
- misconstrued, on 10/10/2007, -6/+1827 million people will lose their homes? Scary... Lowering the rates and printing up more $$$? Scarier... No easy fix? Crash inevitable?
- inactive, on 10/10/2007, -8/+151Instead of immediately absolving home-buyers of blame, remember that a lot of these ***** WAY OVERPAID for their homes, failing utterly to demand value for their money or use sound judgment. As a result, prices exploded to obscene levels and now many many people can't even consider buying a home.
It's hard to feel too sorry for people who screwed over a great many others by falling all over themselves to bid MORE THAN ASKING PRICE for mediocre homes. Had they stood up for themselves and for value, we wouldn't be in this ***** situation.
This was just another symptom of the plummeting standards and intelligence of our society. You want to talk about "values"? How about starting with the value of a goddamned dollar? - jbennett1128, on 10/10/2007, -12/+120Holy *****.
Seriously.
If you don't understand what he's talking about... then you have no idea how big this is, how huge it is to tell a major audience to stop trading.
We're looking at some SERIOUS doom and gloom here folks, for American economics. My friend works in the escrow side of a mortgage business. She says their department is laying off, but they just added a huge foreclosure section to their business. She's been there seven years and says she's never seen it like this. She gets notices across her desk daily about banks that are going out of business, alerting them to stop sending funds to those banks. She said they would normally get 1 every 5 to 6 months, and now they're getting dozens a day. Countrywide has stopped doing sub prime mortgages entirely. Seriously folks, this is BIG. - tzonic, on 10/10/2007, -0/+99It's easy. Bank gets Sheriff to go to house, knock knock: excuse me, get the ***** out.
- Bhima, on 10/10/2007, -2/+87I had always assumed this was some extended cocaine experiment... being filmed.
- dusingaz, on 10/10/2007, -1/+84Cramer's followup
http://www.thestreet.com/s/cramer-why-i-took-the-fed-to-task-on-stop-trading/video/cramermarketupdates/10372626.html - an0nymous, on 10/10/2007, -2/+84Collapse of the credit industry due to shaky lending practices spurred by unnaturally low interest rates and a lack of sober regulatory oversight. He foresees a huge market crash as the credit markets are deeply scarred and wished the fed chairman would lower interest rates (which risks destabilizing the dollar further) in order to allow a ready abundance of cheap credit.
In short, he has profited by virtue of unbalanced market economics and now wishes to be protected from those same market forces.
Also, he wants free ice cream for ever and ever. - boredsam, on 10/10/2007, -1/+64not to mention Adjustable Rate Mortgages. Nothing like paying 9-15% on your home.
- inactive, on 10/10/2007, -2/+61 I would say yes a crash is inevitable, it's only a matter of when. If they lower interest rates that will slow foreign investment and crash the dollar. If they keep them high it's a recession. It's lose lose. The Federal Reserve owners have robbed the American people and the time is coming where we are all going to have to pay for that.
- dracostimpy, on 10/10/2007, -12/+69If Bernanke cuts rates, China et al will have less incentive to continue to buy up treasuries at lower interest rates, and that's presently the only thing keeping the dollar from falling through the floor. Therefore, Cramer is asking Bernanke to save his buddies' asses at the expense of the $ itself (ie, at the expense of EVERYONE). My guess is Bernanke will stand pat, since it's easier to deal with one Cramer than 300 million.
As for Cramer, he himself predicted the hedge fund implosion in this more sane commentary:
http://www.thestreet.com/pf/markets/activetraderupdate/10372191.html
...so for him to scream that the sky is falling is flip-flopping of epic proportions. If Googling "failure" brings up links to Bush, then I'd say Cramer should be near the top of the search results for "douchebag". - ikzeidegek, on 10/10/2007, -14/+71Take it from an Econ Ph.D., this guy is nuts. It is sad how much incompetent Economics commentary is out there.
The truth is that Greenspan had little knowledge of modern Economics and had limited skills and knowledge to do his job well, but was riding a good market, and was helped greatly by a perception of competence. Greenspan was an investor, not an expert on Econ. It is a good thing that if times may be becoming more difficult, we will have Bernanke instead of Greenspan heading the Fed. It's one thing that the Bush administration got right.
The Fed is likely to raise interest rates, based on fundamentals. If you're interested in the current basic Fed philosophy and why they are likely to raise the interest rate, read
http://www.hussmanfunds.com/rsi/taylorrule.htm
After reading this, you'll know more than the types the TV asks for Economics commentary. - Ghengis, on 10/10/2007, -2/+59All this interest rate mess is why I've always had a FIXED mortgage.
- asauterChicago, on 10/10/2007, -9/+65I remember two years ago when everyone was going crazy in the market and people thought I was crazy for renting. I still rent today, I like having the space, the lower monthly payment, and generally a nicer place than I could afford to buy. People would ask me, "how much does this condo costs??" I would say, it's not a condo, it's an apartment, and they would give me that smug look and a snicker and say "Ohhh, you still rent??", like I was too stupid or too poor to buy a house. Now all those people have those half a million dollar "investment properties" they can't sell because they bought in an over-saturated, over-valued market. And to add insult to injury they also have a million dollar condo on a variable interest rate loan... me? I pay they same rent I did four years ago, who's laughing now?
- HowieHardcore, on 10/10/2007, -0/+50This happens every time banks get into trouble (and they always eventually get into trouble). Banks lend out money. If lending standards are slackened, like they have been for a while, banks lend money to anyone, with little oversight. Eventually those loans turn sour, like they are doing in the subprime mortgage business. The banks are then caught short and don't have the money to continue operating. In the Bear Stearns case we're talking about two hedge funds that they've had to close, which is in turn affecting the parent company. So after a bank is facing a run on what little it has in deposits by creditors they'll turn to the Federal Reserve, which is itself a cartel of banks. At the Fed a bank can be lent money to stay in operation. Also if Congress gets involved through pity they can authorize the Fed to give that other bank money interest free. The problem with this is that the Fed creates money out of nothing and in so doing they dilute the total pool of dollars in circulation which causes our dollars in our pockets to be worth less and less, this is known as inflation: the value of money goes down in relation to other commodities. So don't believe people like Cramer or your Congressman or the Fed who will say that Government needs to bail these banks out. It's a lie. They want to saddle the American people with a hidden tax (inflation) to solve their ill-conceived business practices.
- kb7735, on 10/10/2007, -7/+55Erin Burnett is hot
- TexMurphy, on 10/10/2007, -10/+57I love how CNBCs Cramer tells it like it is and pisses people off.
If your poor and buying on margin you've been warned. Don''t start crying and say no one warned you. - sensibledriver, on 10/10/2007, -1/+47The Fed's job is not to save Cramer's Hedge Fund buddies' yachts.
- jmpeagle, on 10/10/2007, -4/+50THAT"s why we are in this mess in the first place. The people who are going to lose their homes are people that shouldn;'t have even bought a home in the first place. In no way could they afford their house without these ridiculous predatory adjustable rate mortgages. No way in hell could these people have afforded on a normal mortgage. This housing bubble was caused by the Fed keeping the rates too low too long. Also, lowring i-rates will accelerate the collapse of the dollar and I would prefer to not have ridiculous inflation.
- MarkOfTheDead, on 10/10/2007, -2/+43that woman's shirt is a perfect example of how you can make a good looking woman look ridiculous just by dressing her up in giraffe-print
- ryanjulian, on 10/10/2007, -2/+43You DO realize that when the Fed lowers rates, it doesn't ACTUALLY print more money. Printed money is only a TINY fraction of the money supply, and is rarely if ever changed. Lowering interest rates is about credit, which, up to a few months ago, was availably WAY too cheaply. Thats why he raised rates, to stifle credit.
- zydeco, on 10/10/2007, -1/+41It's funny how the "free market economy" should apply to all the companies out there, until the banks are in trouble. Then the government should step in to bail them out. Hundreds of thousands of jobs have been axed because of leveraged buyouts and takeovers in the last decade while the brokers and bankers made fortunes. Now we're supposed to take it up the rear again just because they made some bad bets? Screw that.
iTulip made a great video calling Cramer for what he is, go check it out: http://www.youtube.com/watch?v=Pd5zAbDKZEg
I'm not shilling for iTulip, I just think they can see through Cramer's ***** better than most. - bebop717, on 10/10/2007, -2/+40HUMAN SACRIFICE, DOGS AND CATS LIVING TOGETHER - MASS HYSTERIA!
- JonForTheWin, on 10/10/2007, -5/+43You know who wants to phase out the fed?
Ron Paul. Yeup . . - Frnnkdlxx, on 10/10/2007, -37/+72I think its almost time to evacuate the country. I'm staying and fighting with the likes of Ron Paul. Nope, not even a plug for him. He's been on Alex's show and films. He knows about the prisonplanet.I was about to leave this country 1 year ago when I found out about the real ID's, biut then I discovered Alex Jones and realized, Hey. This country is worth fighting for. My families futures are worth fighting for. Real men who can clearly see the truth have a responsibility to other man.
Damnit America! How the mighty have fallen..... - hokie47, on 10/10/2007, -1/+33You just can't lower rates anytime you want. Sure if rates were at 10%, but not at current rates
- epalla, on 10/10/2007, -9/+41I'm always amazed by how many idiots pop up in any post that has to do with economics
- MrGrinchstick, on 10/10/2007, -13/+43Now its so bad even the MSM is gonna start telling the truth?
This guy is a rarity. (honest)
Watch this....
http://video.google.com/videoplay?docid=449294564876413449&q=capitalist+conspiracy&total=118&start=0&num=10&so=0&type=search&plindex=0
It should have been in Junior High school. Also that link to Cramer's after thougts is good. - Sarevok9, on 10/10/2007, -2/+32slowly?
- MacEnvy, on 10/10/2007, -1/+30"99.99% of-the-time, paying your own mortgage is better than paying one for your landlord"
Except that he's not talking about normal circumstances - he's talking about the market in the past 4 years, the rampant overpricing and speculation, sub-prime lending, etc. He's not saying he's better off than a GOOD real estate investor, he's saying he's better off than all of those folks who are now defaulting on their mortgages and declaring bankruptcy. - gotamd, on 10/10/2007, -0/+28Good explanation. I hope the Fed grows a spine and lets the industry eat its own ***** instead of saddling the rest of us with devalued currency. The investment banks and lenders got too aggressive and stupid, and now they want to be bailed out after making billions of dollars. Screw them! If you can't run a sound busineess, you close shop. Don't go crying to the government when you get bitten in the ass.
- EvolvedAnt, on 10/10/2007, -0/+27Meaning your rate went up 0.25% every year. If you stayed any longer your rate would have been well above the average fixed rate for someone with good credit. Thus this is ONLY a good deal if you plan on selling your home after less than 5 years, and I'm sure you will agree that is NOT the plan for 99% of buyers. Any money you saved anyways will be displaced by the cost of selling your house in a now slumping market, plus the costs of buying a new home, wouldn't be surprised if you lost money in the end.
- CiXeL, on 10/10/2007, -3/+29dugg for "carrot top of trading"
just lost my job due to corporate budget cuts yesterday, needed a laugh - Sarevok9, on 10/10/2007, -2/+27You can only blame inflation and the prime rate so much, what it really boils down to is the lack of consumer intelligence. When you sign into an adjustable rate mortgage you have to understand that your interest can jump from the 4.15% teaser to the 22% prime +5 at any given time (i know, prime is nowhere near 17 at present, im saying in general). The people who are / were not prepared to pay that kind of interest had no business in buying a home on an adjustable rate, esp with the collapse of the subprime lending market. I'm willing to bet that of those 7m that will lose their homes that 90% of them never 'overpaid' on their mortgage (to help reduce the principal or interest acruement rates), their all have 4-6 year loans out on 2 cars (the sedan they drive, the minivan for the 2 bouncing kids and the wife), and about 4-6k in credit card debt to spoil said children (well thats the statistical averages anyways).
I'm also willing to bet that 95+% of the people who will be forced into forfiture are the ones who opted for the 1-1.5% lower adjustable then the SAFE fixed rate. Can you really blame the banks for riding the wave? Or should you fault consumers for not understanding what their signing into? - jonesin, on 10/10/2007, -1/+25They haven't put out a press release yet, but the major lender Wells Fargo is set to close down their entire "Alternative Lending" division. They've put off sending out the press release because they didn't want to spur even more investor panic in the markets, but yeah, this is even bigger than people think it is, and the fallout has only just begun to be seen.
- inactive, on 10/10/2007, -10/+33BOOYAH JIM TELL IT LIKE IT IS. Last night I was at dinner with a Harvard grad visiting San Fransisco and whos been a friend of the family. He works these markets and had pretty much the EXACT SAME STORY TO TELL.
- alexanEmpire, on 10/10/2007, -1/+24As an investment noob, I honestly have no idea what he Cramer was talking about. Can anyone thoroughly explain it to me (and others), please?
- DeucesWild, on 10/10/2007, -0/+23How the heck do you pay the same rent after 4 years?? Every year for the last 4 our places have always raised the rent about $100 each time. I'll be moving at the end of this month just because $1800 for our place would be ridiculous.
- wageslaven, on 10/10/2007, -1/+23400% not good enough for you? Why didnt you get out?
- footbag01, on 10/10/2007, -4/+26The bigger problem is that Bernanke doesn't have the respect that Greenspan had. If Greenspan left the rates alone, Kramer would respect that. Bernanke is just untested, but he is a Bush appointee which depletes his credibility that much more.
- Frnnkdlxx, on 10/10/2007, -17/+38tzonic is right. remember ancient rome. how did the bankers who caused that collapse (which led to the dark ages) get all the people to get out of their homes? their land? their property? the legion that cesaer, in the nick of time, taught to move on their own nation. lol. Did you hear about the 100,000 american soldiers in iraq staying their for up to 6 terms? they're not going to come home happy or STABLE. ... they're going to be joining the biggest businesses in america: Police
Force + Prisons. loooool. you can clearly begin to see the outlines of the iceberg beneath the tip. The Prisonplanet is upon us and the awakening was too late. - wicketr, on 10/10/2007, -0/+21There's no such thing as guaranteed easy money. People played the stock market before the dot com bust. Remember the throngs of "day traders". "Quit your job and just sit at home raking in thousands on the stock market", they said. It's a cinch!!
People buying and selling houses that have no business in that market have escalated the prices to unmaintainable heights. There are waaay too many contractors out there building new homes and condos that no one will be living in. Eventually, the market will colapse and the dumb people that thought they could join in for "easy money" will be left at the alter.
To me, this type of scheme reminds me of a pyramid scheme. Whoever is left at the end will be screwed. - inactive, on 10/10/2007, -3/+24 If you think the Federal Reserve is any way subordinate to George Bush you are nuts. The shareholders of the Fed are the worlds most powerful families. Rothschild, Rockefeller etc, they run the government, not the other way around. Why do you think the government can't stop them from robbing us?
- hiphoc, on 10/10/2007, -0/+20*****, in WWII the army did studies to see how long someone could be in combat before going crazy. They found the limits were 8-12 months. Guys are being forced to do 5-6 tours in urban warfare. Urban warfare is one of the worst types of combat cause the enemy is all around you, asymmetric. You always have to be on guard. There isn't enough adrenaline in our bodies to be wound up for that long. Remember all those Vietnam movies about how dudes came back messed up. Yea, that was after one tour, in jungle warfare. There is no way our guys are gonna be over there killing people, running check points are gonna come back OK. Even if the percentage is small, a lot will go into the police and sheriff's offices. Get them home and pray for the ones there. They are all gonna need our help when they come back.
- bitcloud, on 10/10/2007, -0/+20In short: He stands by it.
- holzp, on 10/10/2007, -6/+25Lower ratings I would guess. He fixed it tho.
- preisler, on 10/10/2007, -1/+20Some countries with actual rules and effective oversight of the credit industry haven't got this problem - the absolute recklessness of lenders throwing loans at everybody has a huge part in this.
- williamdyer, on 10/10/2007, -0/+19Been watching the dollar? There is no room to lower the rate without crashing the dollar.
- CiXeL, on 10/10/2007, -4/+23but hey its the free market and it regulates itself right?
fap fap fap. that is the sound of the invisible hand. - geminitojanus, on 10/10/2007, -6/+25With name calling like "poser" and "idiot" how could you possibly be wrong?
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