Jim Cramer Loses it On Air

7 Million people will lose their homes. I guess he's right to be mad

But to be honest, the people who bought million dollar overvalued homes with ARMs are stupid enough to deserve losing everything

Um, wow.
Less caffeine, Cramer?

Nice.

Hey don't worry, whats Cramer know. Ask the neo-cons they'll tell you everythings just fine.

In the meantime we just spent another 12 billion in Iraq this week.

Besides it's all those stupid borrowers who are to blame anyway. It wasn't that they were conned into buying homes they couldn't afford and sold loans they couldn't understand.

Just like how anyone and everyone can undestand our tax codes and if not shame on them.

It's a curious thing. There is plenty of capital available in the market. Money supply is not an issue. We see no shortage of funds available in the PE market. However, policy IS an issue. Money managers are holding on to funds because they have lost confidence in the indexes - they no longer tell the story, so everyone is speculating as to what exactly will tell the story.

So the feds hold the rate because they too are uncertain and Cramer sees this. He knows the feds are nervous as hell while they attempt to display confidence and composure through no action. They know the metrics used to measure inflationary pressure are useless; they cite manageable levels of inflation and modest levels of unemployment while the middle class disappears.

What's wrong with this picture? Too much Kool Aid going around and Cramer is one of the few who is not drinking from that spigot.

I like this response

?

Thank you

Well, I don't know a lot about economics, or about the Wall Street Crash... but IIUC confidence in the market is sort of significant...

Sounds bad.

Edit: Something tells me this is not helping...

Very true. We aren't in armageddon overall, but he was venting about the fixed income bond market, and they are getting fucked pretty hard.

But with the fed leaving the rate unchanged, maybe things will hopefully lead to a soft landing.

Something about seeing an experienced and seasoned money manager/financial expert lose his shit on the air is unnerving. What the hell is really happening in our economy?

Jim Cramer always looks like he's close to having a heart attack anyway

He sounds like he's been living in a van down by the river.

You just DON'T HAVE ANY IDEA what it's like to live in a van down by the river!!

YOU HAVE NO IDEA!!!!

Ah those derivatives guys, they just can't decide what they like more; a good old fashion recession, or strong growth!

The middle class is not shrinking.

I love Cramer. He reminds me of Peter Finch in Network. He has his shtick, and he does it well. On Kudlow & Cramer he always seemed slightly muted. Now we're seeing how fucking out of control he really is.

The Fed could completely turn this whole thing around with an immediate half point drop. It would re-stimulate the sagging refinance market and give people a chance to get out from under their financial burdens. A whole bunch of these loans re-amortize after 5 years, and that's where the real trouble is going to start. By my clock, that'll happen in 2008-2009.

Greenspan would have seen the indicators two quarters ago. If the FHA and VA would increase their maximum loan amounts, then they would still be competitive, and so many of those "sub prime" loans would have been converted to a more stable payments for the owners. I know they are raising it, but the overall effect on CA is limited, due to the higher median house costs. If i recall, their max loan currently is something in the $260,000-$269,000 area, and they are talking about raising it to $419,000 or so. It would be a great help.

The lenders I work for, went from having 5 full pages of available loan programs on Wednesday, to 5 (total) available programs on Thursday. Mortgage companies are so scared, that they have tightened up loan approvals to ridiculous new heights. Loan companies are re-training their Underwriters. I just read the new underwriting guidelines for FannieMae and FreddieMac--brutal. They are only approving home loans of those with the highest credit ratings. They are so frightened that they will lose investor confidence, that they have made a self fulfilling prophecy with their own fear. Jumbo loans, traditionally people with exceptional credit, have fallen under the new strict guidelines, and they are not even part of the "sub prime" problem.

There are many foreclosures in So. Cal right now. I heard they just auctioned off over 480 homes last month because of defaulted loans.

I like Jim Cramer a lot. But that's a little scary, even for him. He's just got so much more tied up in it, and i can see why he's freaking out. So many of these loans were re-sold in packages to mutual funds and investment groups. They create instability in mutual funds. Additionally, loans are sold and resold to investors, so owners who are trying to make a deal to save their house, don't know who to contact to try to change or modify loan terms. It's lose- lose on that front, and that's unfortunate.

It is just criminal what we do isn't it?

I'd say the has no idea what it's like out there.

bahahahaha that was the fucking funniest thing I have ever seen

I cannot wait to see this parodied by SNL...

I think this may be love at 1st sight

I would like to see Tom Cruise and Jim Cramer argue about something. Doesn't matter what. I just want to see it.

stop being glib!

Bless you

Jim Cramer saves lives!