More interesting comments from Cramer

[TheBreeze]

I think Cramer is more bearish than anyone on this site. The following comments are from his RealMoney site, so I’m not going to bother with a link:

“But you need to know that in the last two weeks, all fixed income has simply shut down. You can’t even sell commercial paper, and that stuff’s like tap water, the way it flows. The rest of the market can rally, we can have short squeezes, but the money is pouring out of everything everywhere and flowing into cash and Treasuries. The mortgage market has disappeared overnight. Overnight!

I see these ads for home-equity loans and mortgages and I laugh. The companies can’t possibly get you one because there is no way that anyone will give them the money to do so. These homebuilders are dead right now. Moribund.

…

However, I want to reiterate that things are collapsing in fixed income. Without the discount window being opened, without the fed fund rates being cut, you are going to have major bank failures and homebuilding failures in weeks, not months. Maybe even days.”

Well, it shouldn’t take too long to see if those predictions come true. 🙂

With all the gloom and doom talk, I’m beginning to wonder if my money is safe. I have most of my cash in an EmigrantDirect account and a CD with Corus bank. I know that Corus has some pretty good exposure to the Florida RE market and I’m guessing that EmigrantDirect is taking on more risk than most banks as it pays close to the highest rates for savings accounts.

So … if these banks go under, how long will it take to get my money from the FDIC? Will the FDIC get me all of my money back? I’m beginning to think I should withdraw all my money and stick it under my mattress.

[TheBreeze]

To put the above comments from Cramer in perspective (which were made at 7 PM EDT today), here’s some of Cramer’s comments from 1 PM EDT today. These comments were made right before the market took a tumble:

“Tough to take us down. First, we know that the bulls go nuts in the last half hour.

…

Legg Mason (LM – commentary – Cramer’s Take – Rating) and Eastman Chemical (EMN – commentary – Cramer’s Take – Rating) rally on upgrades.

That doesn’t happen in a real bear market.

…

But forget all that. It’s the bull express that comes in at 3:30 p.m., in part because it’s so easy to transfer money from the now 4.72% 10-year — remember when it was supposed to go to 5.5%? You want to get caught up in this?

…

Oh, and don’t believe that the damaged companies don’t have ammo: Bear (BSC – commentary – Cramer’s Take – Rating) says things are great and solidly profitable and Beazer (BZH – commentary – Cramer’s Take – Rating) declares a dividend. (What a bunch of nuts — they bought back stock high and now they declare a dividend? Why not hoard it for even harder times?)

The bears never believed the last half-hour ramp on Fridays.

They still don’t.

But it happened.

By the way, people who were short in 1990 remember this exact same pattern. I used to go to Mrs. Cramer with my head in my hands, telling her how much I had lost on the short side in the last half hour of trading. Made it all back the next four days, of course — until we bottomed and it was time to go the other way.

But not before I made a huge amount of money the other four days of the week.

Takeaway: Don’t ignore the bull markets. Consider that the last half hour can easily ramp again.

Yet never take your eyes off these financials, and cover your shorts to put them out higher later on.”

So at 1:00 PM EDT we were in the midst of a roaring bull market with money being pulled out of treasuries and put in the stock market which suddenly switched at 7:00 PM EDT to a bear market in which money was flowing from everywhere into treasuries and major banks within days of failing if not rescued by the Fed.

I hope Bernanke doesn’t listen to this idiot. I will have a ton of respect for Bernanke if he just lets this whole thing play out on its own with the chips falling where they may. It’s not the Fed’s job to prop up bubble markets and they certainly shouldn’t be propping up this bubblicious housing market.

[TheBreeze]

To put the above comments from Cramer in perspective (which were made at 7 PM EDT today), here’s some of Cramer’s comments from 1 PM EDT today. These comments were made right before the market took a tumble:

“Tough to take us down. First, we know that the bulls go nuts in the last half hour.

…

Legg Mason (LM – commentary – Cramer’s Take – Rating) and Eastman Chemical (EMN – commentary – Cramer’s Take – Rating) rally on upgrades.

That doesn’t happen in a real bear market.

…

But forget all that. It’s the bull express that comes in at 3:30 p.m., in part because it’s so easy to transfer money from the now 4.72% 10-year — remember when it was supposed to go to 5.5%? You want to get caught up in this?

…

Oh, and don’t believe that the damaged companies don’t have ammo: Bear (BSC – commentary – Cramer’s Take – Rating) says things are great and solidly profitable and Beazer (BZH – commentary – Cramer’s Take – Rating) declares a dividend. (What a bunch of nuts — they bought back stock high and now they declare a dividend? Why not hoard it for even harder times?)

The bears never believed the last half-hour ramp on Fridays.

They still don’t.

But it happened.

By the way, people who were short in 1990 remember this exact same pattern. I used to go to Mrs. Cramer with my head in my hands, telling her how much I had lost on the short side in the last half hour of trading. Made it all back the next four days, of course — until we bottomed and it was time to go the other way.

But not before I made a huge amount of money the other four days of the week.

Takeaway: Don’t ignore the bull markets. Consider that the last half hour can easily ramp again.

Yet never take your eyes off these financials, and cover your shorts to put them out higher later on.”

So at 1:00 PM EDT we were in the midst of a roaring bull market with money being pulled out of treasuries and put in the stock market which suddenly switched at 7:00 PM EDT to a bear market in which money was flowing from everywhere into treasuries and major banks within days of failing if not rescued by the Fed.

I hope Bernanke doesn’t listen to this idiot. I will have a ton of respect for Bernanke if he just lets this whole thing play out on its own with the chips falling where they may. It’s not the Fed’s job to prop up bubble markets and they certainly shouldn’t be propping up this bubblicious housing market.

[bsrsharma]

how long will it take to get my money from the FDIC?

From what I remember from the 1990 S & L crisis, FDIC was very prompt. The regulators would come, take over all assets and pay off the depositors the same day. (The assets were then transferred to Resolution Trust Corporation (RTC). I remember seeing some assets disposed of at 20 – 40 cents on $ – usually commercial properties.)

Will the FDIC get me all of my money back?

$100,000 per account maximum, absolutely firm. Not a penny more, even if you had millions.

[bsrsharma]

how long will it take to get my money from the FDIC?

From what I remember from the 1990 S & L crisis, FDIC was very prompt. The regulators would come, take over all assets and pay off the depositors the same day. (The assets were then transferred to Resolution Trust Corporation (RTC). I remember seeing some assets disposed of at 20 – 40 cents on $ – usually commercial properties.)

Will the FDIC get me all of my money back?

$100,000 per account maximum, absolutely firm. Not a penny more, even if you had millions.

[SD Realtor]

How can he keep whining to the Fed to lower the overnight rate when the dollar is in such a poor position. I am just a rookie but that doesn’t seem to make much economic sense to me. I just don’t see a massive move by the fed having a huge impact and bailing out the lenders at this point. Seems like it would prolong the inevitable. This is possibly the first real dose of good medicine that the housing market and lending industry needs to swallow. More to come.

SD Realtor

[SD Realtor]

How can he keep whining to the Fed to lower the overnight rate when the dollar is in such a poor position. I am just a rookie but that doesn’t seem to make much economic sense to me. I just don’t see a massive move by the fed having a huge impact and bailing out the lenders at this point. Seems like it would prolong the inevitable. This is possibly the first real dose of good medicine that the housing market and lending industry needs to swallow. More to come.

SD Realtor

[bsrsharma]

SD Realtor,

If I may play devil’s advocate, if it hurts Americans less by devaluing $ compared to causing a severe recession, it may be lesser of the two evils. Like, amputating limbs to save a patient from gangrene. If one has to choose between living without a limb or die, most may choose to live. If most of the debts are held by foreigners, shouldn’t the FED pick citizen’s interests over foreigner’s?

One thing consistent about Cramer is, he is advocating the same for homeowners underwater – ditch the home and save your shirt rather than ending up on the sidewalk penniless.

[bsrsharma]

SD Realtor,

If I may play devil’s advocate, if it hurts Americans less by devaluing $ compared to causing a severe recession, it may be lesser of the two evils. Like, amputating limbs to save a patient from gangrene. If one has to choose between living without a limb or die, most may choose to live. If most of the debts are held by foreigners, shouldn’t the FED pick citizen’s interests over foreigner’s?

One thing consistent about Cramer is, he is advocating the same for homeowners underwater – ditch the home and save your shirt rather than ending up on the sidewalk penniless.

[joebaduba]

I concur. Fed needs to defend the dollar. Shakeout is necessary. Wish Paul Volcker were still around to stand up to the whiners.

[joebaduba]

I concur. Fed needs to defend the dollar. Shakeout is necessary. Wish Paul Volcker were still around to stand up to the whiners.

[Chris Scoreboard Johnston]

If things are truly that bad, and I have no idea at all if they are, the Fed will step in. They will not let a crisis of that magnitude happen, rates will be tanked and the dollar let go if they had to make that choice. It seems that is an exaggeration, but I do not know. He is a wild guy, but he is very smart, and has alot of experience, and contacts that are insiders.

[Chris Scoreboard Johnston]

If things are truly that bad, and I have no idea at all if they are, the Fed will step in. They will not let a crisis of that magnitude happen, rates will be tanked and the dollar let go if they had to make that choice. It seems that is an exaggeration, but I do not know. He is a wild guy, but he is very smart, and has alot of experience, and contacts that are insiders.

[farbet]

China aint buying anymore mortages as of May. They ain’t stupid. There is no liquidity now. Which greater fool will buy these mtg backed worthless paper? Sure would like to know.

[farbet]

China aint buying anymore mortages as of May. They ain’t stupid. There is no liquidity now. Which greater fool will buy these mtg backed worthless paper? Sure would like to know.

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