[jaydub]

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Those numbers that Cramer spouted off are pretty insane (half the people who took out a mortgage in the last 3 years losing their job or 7 million ish). I haven't actually read anywhere that that is the case and if anyone on here has access to some quotes like that I'd like to see it.


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From memory it was more to the effect that 14M loans were taken out in the past 3 years with 7M being exotic and he predicted that half of the exotics would lose their home. This is effectively saying a quarter of the loans taken in the past 3 years would be foreclosed. Not as drastic as you say but a wee bit pessimistic none the less.

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I think he's clearly acting a bit, but I was on the conference call with Bear Stearns and the guy definitely said when asked to compare this to the worst of the worst for the market (i.e. the crash and the .com bubble) and he said explicitly that this is the worst he's seen the fixed income market in twenty years.


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I actually think he wasn't acting (much).

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Up until that point, I rally felt fairly confident about things. Obviously it was apparent that there would be some large mark downs over the next couple months and that there will be some bodies floating in the river along the way, but from the numbers they spouted off it really looked like this was just a hit they would take in stride. It really seemed like although liquidity as a whole was drying up that there was sufficient capital to take a hit.


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My thinking is that he has decided that instead of ridiculously pumping CFC it is time to go the other way and say the sky is falling. Either way I still view him as a sideshow act and give him little credibility. If he tells me the sky is blue, I place one hand on my wallet and look up; just to check.

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I dunno, it will be interesting to see what kind of retraction Cramer takes tomorrow. He won't take back what he said but he'll probably apologize for behaving like he did.

I think the long run implications of the fed stomping down the rates may be worse than weathering thise current storm.

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