Jim Cramer say “Just walk away”

[Bubblesitter]

I’ve watched Cramer for years, I usually take him with a grain of salt. He is certainly entertaining with his hyperbolic rants. However, this time he seemed to have a different demeanor. 100% defaults on the 2/28s is a stretch, but it will likely be in the high double digits, especially in areas of 20% depreciation. Walking will seem like an attractive option.

[Bubblesitter]

I’ve watched Cramer for years, I usually take him with a grain of salt. He is certainly entertaining with his hyperbolic rants. However, this time he seemed to have a different demeanor. 100% defaults on the 2/28s is a stretch, but it will likely be in the high double digits, especially in areas of 20% depreciation. Walking will seem like an attractive option.

[hipmatt]

I usually don’t like Cramer, but I have to say that he hit this interview 99% dead on correct, except the part where he states that if the fed lowered rates again, the market would go back up.

I think lowering rates would have little effect on housing if any, and a huge negative effect on the US dollar as well as worsen the already high inflation. The consequences of this will be much worse. All we would be doing is giving an addict one last hit of crack, before sending them into the painful detox stage, but the more drugs taken, the harder the detox.

[hipmatt]

I usually don’t like Cramer, but I have to say that he hit this interview 99% dead on correct, except the part where he states that if the fed lowered rates again, the market would go back up.

I think lowering rates would have little effect on housing if any, and a huge negative effect on the US dollar as well as worsen the already high inflation. The consequences of this will be much worse. All we would be doing is giving an addict one last hit of crack, before sending them into the painful detox stage, but the more drugs taken, the harder the detox.

[DaisyDuke]

IMHO Jim “C” is a media whore and a liar! I heard him on the Bill Handel (640 KFI) show about a month ago saying housing would be going up in 08 and I think he even suggested buying stock in a particular builder! I was shocked. I knew then he was an idiot.

Surely it didn’t take him one month to unload all of his real estate!

[DaisyDuke]

IMHO Jim “C” is a media whore and a liar! I heard him on the Bill Handel (640 KFI) show about a month ago saying housing would be going up in 08 and I think he even suggested buying stock in a particular builder! I was shocked. I knew then he was an idiot.

Surely it didn’t take him one month to unload all of his real estate!

[little lady]

I love it and I hope every idiot that took those stupid loans listens!!!!

[little lady]

I love it and I hope every idiot that took those stupid loans listens!!!!

[ocrenter]

i like what Bugs said about the 100 monkeys.

not to pump my own site but check out these latest examples.

4521 55TH ST., San Diego, CA 92115
#19 purchased in 3/06 for $280,000 for a 600 sqft unit.
#20 purchased in 8/06 for $247,000 also for a 600 sqft unit.

now #19 is trying in earnest to sell for $149,000. (47% drop). let’s say it doesn’t sell, is #19 going to keep throwing away good money into this money pit? certainly this guy is more apt to listen to the likes of Cramer than one of the Piggingtonians, right?

So if #19 walks away, what’s to prevent #20 from doing the same?

Even if #19 sells and don’t have to walk, the new comp now makes #20 40% down from purchase. would you walk if your condo is 40% underwater?

problem is the whole building is like that. So if you got #19 and #20 walking, that’ll start the chain reaction Bugs is talking about.

[ocrenter]

i like what Bugs said about the 100 monkeys.

not to pump my own site but check out these latest examples.

4521 55TH ST., San Diego, CA 92115
#19 purchased in 3/06 for $280,000 for a 600 sqft unit.
#20 purchased in 8/06 for $247,000 also for a 600 sqft unit.

now #19 is trying in earnest to sell for $149,000. (47% drop). let’s say it doesn’t sell, is #19 going to keep throwing away good money into this money pit? certainly this guy is more apt to listen to the likes of Cramer than one of the Piggingtonians, right?

So if #19 walks away, what’s to prevent #20 from doing the same?

Even if #19 sells and don’t have to walk, the new comp now makes #20 40% down from purchase. would you walk if your condo is 40% underwater?

problem is the whole building is like that. So if you got #19 and #20 walking, that’ll start the chain reaction Bugs is talking about.

[bsrsharma]

Why does he pick Inland Empire for “plowing over”. If anything, it should be Atlanta, Miami, Detroit and Chicago that need to be “plowed under” per his suggestion.

Other 3 look familiar, but Atlanta at the core of Armageddon sounds surprising. Any explanations?

City/Metro, State Inventory (as of 7/30/07)

Atlanta, Georgia 120170
Miami, Florida 112333
Detroit, Michigan 74658
Chicago, Illinois 71206
Riverside, California 52384
Houston, Texas 48277
Phoenix, Arizona 47223
Tampa, Florida 46451
Los Angeles, California 43676
Dallas, Texas 43421
Washington, DC 40022
Orlando, Florida 33973
Denver, Colorado 29100
Las Vegas, Nevada 28462
Minneapolis – St. Paul, 25961
Cape Coral, Florida 25308
Cleveland, Ohio 23661
Jacksonville, Florida 22102
San Diego, California 21301

[bsrsharma]

Why does he pick Inland Empire for “plowing over”. If anything, it should be Atlanta, Miami, Detroit and Chicago that need to be “plowed under” per his suggestion.

Other 3 look familiar, but Atlanta at the core of Armageddon sounds surprising. Any explanations?

City/Metro, State Inventory (as of 7/30/07)

Atlanta, Georgia 120170
Miami, Florida 112333
Detroit, Michigan 74658
Chicago, Illinois 71206
Riverside, California 52384
Houston, Texas 48277
Phoenix, Arizona 47223
Tampa, Florida 46451
Los Angeles, California 43676
Dallas, Texas 43421
Washington, DC 40022
Orlando, Florida 33973
Denver, Colorado 29100
Las Vegas, Nevada 28462
Minneapolis – St. Paul, 25961
Cape Coral, Florida 25308
Cleveland, Ohio 23661
Jacksonville, Florida 22102
San Diego, California 21301

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