This is exactly why I can’t take the guy seriously. The defaults will be very high. There’s no doubt about that. But 100%? I mean, please. Lighten up, Francis. Take your medication, bro.

powayseller predicted 50% default on those ARMs?

If owners walk like Cramer recommended they do, then we might just see 50% default rates 2/28.

I personally predited that people would walk from their houses rather than cut back and live on bread and water. Of course, they’ll keep the cars and credit cars and drop the house.

I think that economy is resilient and while we’ll get a general recession, the consumer will keep on spending throughout the housing depression. The consumer is an addict. He’ll cut back a little but he really can’t stop from buying junk.

I see the families shopping at Walmart and to them, buying junk is a feel good exercise. Buying plastic tubs, clothes and shoes made in China in affordable entertainment and luxury for them.

I didn’t used to believe in the affordable luxury concept but Starbucks proved me wrong.

powayseller predicted 50% default on those ARMs?

If owners walk like Cramer recommended they do, then we might just see 50% default rates 2/28.

I personally predited that people would walk from their houses rather than cut back and live on bread and water. Of course, they’ll keep the cars and credit cars and drop the house.

I think that economy is resilient and while we’ll get a general recession, the consumer will keep on spending throughout the housing depression. The consumer is an addict. He’ll cut back a little but he really can’t stop from buying junk.

I see the families shopping at Walmart and to them, buying junk is a feel good exercise. Buying plastic tubs, clothes and shoes made in China in affordable entertainment and luxury for them.

I didn’t used to believe in the affordable luxury concept but Starbucks proved me wrong.

I don’t get Cramer. He keeps talking about people keeping their cars and credit cards and walking away from their houses. Sometimes he says it like it’s a prediction, other times it’s like it is a rcommendation. That advice, no matter how stupid people were to get in over their heards, seems silly to me.

Not only silly, but dangerous for society as a whole. It’s to everyone’s benefit to limit the losses only to those people who cannot pay their mortgages. Encouraging otherwise viable borrowers to walk away just so they can keep their toys and SUVs is sending the wrong message. That is the opposite of accepting responsibility for your personal decisions.

The prices will correct on their own just based on the unqualified borrowers. There’s no good reason to encourage everyone who’s even moderately distressed to walk away.

There is such a thing as right vs. wrong.

Not only silly, but dangerous for society as a whole. It’s to everyone’s benefit to limit the losses only to those people who cannot pay their mortgages. Encouraging otherwise viable borrowers to walk away just so they can keep their toys and SUVs is sending the wrong message. That is the opposite of accepting responsibility for your personal decisions.

The prices will correct on their own just based on the unqualified borrowers. There’s no good reason to encourage everyone who’s even moderately distressed to walk away.

There is such a thing as right vs. wrong.

As much as I dislike Cramer, I don’t think he’s advocating for *everyone* to do this. Just those that purchased in the last few years in the bubble-zones and are going to be underwater.

I happen to agree with him. For many people, it makes much more sense to just toss the keys. Especially if they are new owners and have little emotional involvement in the house.

Remember, these are people that had no business being buying in the first place.