Jim Cramer say “Just walk away”

[LA_Renter]

I just saw Cramer on CNBC and that Doom and Gloom scenario wasn’t as much satire as I thought he was trying to portray. He basically said the CFC conference call last week was probably the most important conference call of the year. He indicated Mozillo was not exaggerating the state of housing and that ALT-A is subprime. He really has gone very bearish on this sector. He basically said Indymac will go the way of AHM today. He lays the blame on Greenspan in creating these products more so than the lenders. Right now he sounds like a poster on Piggington. It is Cramer so take it with a grain of salt, he is good entertainment and does have a great deal of knowledge of the market and he can be incredibly wrong at times like everybody else trying to read a market. But after seeing him today it is very apparent he was not making fun of the doom and gloom scenario, it was more like breaking the ice to joe 6 pack that this is going to be bad. That’s my take at least.

[DaCounselor]

I have to agree with Ozzie and LArenter. The three words that first come to mind after listening to the clip are “hyperbole”, “satire” and “sarcasm”.

Nevertheless, as LArenter points out, it is eerie because of the level of truths contained therein.

[DaCounselor]

I have to agree with Ozzie and LArenter. The three words that first come to mind after listening to the clip are “hyperbole”, “satire” and “sarcasm”.

Nevertheless, as LArenter points out, it is eerie because of the level of truths contained therein.

[PerryChase]

I have to admit that before I started to closely follow the real estate market, I didn’t fully grasp how the easy money was affecting prices.

Now most analysts are saying that even a 10% downpayment requirement would crater the market. 10% is nothing and can disappear just like that in a downturn.

Many on Wall Street who aren’t intimately knowledgeable about housing still think that housing appreciation has to do with a productive economy.

During the boom buyers looked at housing like a dot com stock option that will pay off “for sure.” Now that option is worthless.

Yes, I walk away from all my bad investments and call them water under the bridge, unless there’s a chance of recouping my initial investment, or unless there’s a business relationship to preserve.

20-30 years ago, you’d go to church or PTA meetings with your local banker. Now, your loan servicer is in Kansas, and the holder of note in Beijing.

[PerryChase]

I have to admit that before I started to closely follow the real estate market, I didn’t fully grasp how the easy money was affecting prices.

Now most analysts are saying that even a 10% downpayment requirement would crater the market. 10% is nothing and can disappear just like that in a downturn.

Many on Wall Street who aren’t intimately knowledgeable about housing still think that housing appreciation has to do with a productive economy.

During the boom buyers looked at housing like a dot com stock option that will pay off “for sure.” Now that option is worthless.

Yes, I walk away from all my bad investments and call them water under the bridge, unless there’s a chance of recouping my initial investment, or unless there’s a business relationship to preserve.

20-30 years ago, you’d go to church or PTA meetings with your local banker. Now, your loan servicer is in Kansas, and the holder of note in Beijing.

[yooklid]

Seems they have a follow up video just to prove he wasn’t being sarcastic

http://www.youtube.com/watch?v=ifbeLUjnM7w&eurl=

[yooklid]

Seems they have a follow up video just to prove he wasn’t being sarcastic

http://www.youtube.com/watch?v=ifbeLUjnM7w&eurl=

[kewp]

Seems they have a follow up video just to prove he wasn’t being sarcastic

The video is gone, maybe the NAR gestapo got to it first?

I don’t think he was being sarcastic, especially given that he’s claimed to unload all of his RE holdings. I’ve also said myself that ‘tossing the keys’ is gonna be the new black in 2009.

Cramer is a bit of a tool and has history of really, really bad predictions, so if anything his opinion might be considered ammo for the RE bull’s camp in some circles.

[kewp]

Seems they have a follow up video just to prove he wasn’t being sarcastic

The video is gone, maybe the NAR gestapo got to it first?

I don’t think he was being sarcastic, especially given that he’s claimed to unload all of his RE holdings. I’ve also said myself that ‘tossing the keys’ is gonna be the new black in 2009.

Cramer is a bit of a tool and has history of really, really bad predictions, so if anything his opinion might be considered ammo for the RE bull’s camp in some circles.

[Bugs]

If (like me) you subscribe to the 100 monkey theory then each one of these analysts who reverses course could be considered to represent one more monkey being added to the total. Sooner or later the monkey that jumps onboard is going to be that 100th monkey and when that happens every remaining monkey that isn’t already onboard is going to get on. Then we’ll see what a correction to an unprecedented boom looks like.

[Bugs]

If (like me) you subscribe to the 100 monkey theory then each one of these analysts who reverses course could be considered to represent one more monkey being added to the total. Sooner or later the monkey that jumps onboard is going to be that 100th monkey and when that happens every remaining monkey that isn’t already onboard is going to get on. Then we’ll see what a correction to an unprecedented boom looks like.

[DaCounselor]

Hmmm…so much for satire and sarcasm. Cramer certainly looks less crazed in the latest clip as well.

[DaCounselor]

Hmmm…so much for satire and sarcasm. Cramer certainly looks less crazed in the latest clip as well.

[bsrsharma]

I agree Jim Cramer is a fruitcake (along with his nut case pal Larry Kudlow), but in this instance he may be innovative. Instead of prolonging the Chinese water torture, a mortgage company a day folding down, middle class (and lower) folks holding high LTV assets draining what little cash they have to feed fat and lazy investors who greedily bought way over rated bonds, if a majority of such borrowers follow his advice and repudiate their loans, it will precipitate whatever is going to happen in next few years and blow up the credit system at once. Once the excess faux liquidity, wealth and leverage have been squeezed out, a recovery based on affordable housing can start. I can’t think of a good reason why slow death is preferable to quick death.

[bsrsharma]

I agree Jim Cramer is a fruitcake (along with his nut case pal Larry Kudlow), but in this instance he may be innovative. Instead of prolonging the Chinese water torture, a mortgage company a day folding down, middle class (and lower) folks holding high LTV assets draining what little cash they have to feed fat and lazy investors who greedily bought way over rated bonds, if a majority of such borrowers follow his advice and repudiate their loans, it will precipitate whatever is going to happen in next few years and blow up the credit system at once. Once the excess faux liquidity, wealth and leverage have been squeezed out, a recovery based on affordable housing can start. I can’t think of a good reason why slow death is preferable to quick death.

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