Tuesday, July 31, 2007

Help Cramer....He Has Severe Amnesia

This guy needs help.....This was the headline from a piece that he made in August 2006 "Panic Over Option ARMS Is Just Noise" .

Thanks to Twist and John from Housing Doom for digging this Cramer video!!!!

Dieser Typ braucht wohl wirklich Hilfe......Vergleicht den Clip mit seinem Aussagen vom letzten August.....

Panic Over Option ARMS Is Just Noise ( Cramer August 2006)!

Everyone who uses a Option ARM is an idiot and will lose his house when rates go higher. There. There's a constant theme in the drumbeat of the press that the housing market is the Achilles heel of the economy.

What a joke. OK, so 12% of borrowers have taken out these unique loans that allow you to call your own shots, up from 8% a year ago. You get to have a teaser low rate that is much below what you would have without it.

The implication of the media is that people are buying these homes to flip them, and when the value doesn't go higher they will freak out and become casualties of the new higher rates and will have to default on their houses, leading to a continued glut of homes.

Sorry, that's just stupid. I am sure some of the borrowers are speculative, but you know what? Funny thing. The borrowers are not morons. They can read the papers, too. They recognize that homes aren't selling.

I would bet that most of these borrowers are simply younger people with new jobs who are correctly taking advantage of a low rate. People who have taken this rate have been very right. The long end hasn't gone up. It seems like it won't go up now. So while they build up some savings with the low rate, they get stronger down the road and then can take the higher rate.

The media call it dangerous. I call it prudence !

July 2007!

This epsiode of Cramer is almost as good as this iTulip classic

Diese Episode von Cramer kann es fast mit diesem iTulip Klassiker aufnehmen
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Blogger jmf said...

Cramer just a few weeks ago

scroll to comment 6 from John M

2:56 AM  
Anonymous Anonymous said...

Don't laugh, clowns stupider than him are in charge over here.

11:53 AM  
Blogger jmf said...

Moin Edgar,

unfortunately i think you are correct ....

Another Cramer

12:08 AM  

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