Cramer did a doom and gloom scenario as a “just in case” this actually happens this is what the argument would be. Actually I thought it was pretty creative to out Bear the Bears. I mean the 100% default on 2/28’s is obviously hyperbole. The eerie thing about this act is that it had substance and it does show he understands the bearish outlook on housing and lenders. The peak of resets on 2/28’s beginning Oct going through Feb is Real. The NOD’s and NOT’s we are seeing are Real. And yes it is true that you are better off walking away from an upside down home. These things are too close to home right now to make too much fun of. The one thing he kept mentioning is that this would all go away if the FED lowers 100 basis points. Is he doing this series to send a message to the FED? or is this satire by taking jab at somebody like Bill Gross at Pimco who makes a very bearish housing argument to persuade the FED to lower the overnight funds rate which would benefit somebody like Bill Gross. Overall I think this is Cramer’s way of acknowledging the bear argument on RE through humor by taking an even more hyperbolic bearish stance.
