(Original youtube video got pulled - go here or housingdoom for the video)
Jim "Walk Away From Your House" Cramer followed up on yesterday's shock video, and is now telling people who "made a bet and lost" to not compound the error, and to simply walk away from the mortgage and default.
He says especially in housing markets that have already fallen 20% to 30% like Phoenix, the Inland Empire, Sacramento, Las Vegas, Denver, Southern California and more, where homebuilders and REIC are hiding the extent of the price crash via the use of incentives.
Why lose money each month he asks - and answers with "you might as well rent".
Dear god I think Cramer is reading HousingPANIC. Hi Jim! Boo-yah!
HP Memo to the Banks, Hedge Funds, Lenders, China and others caught holding the bag: You are completely f*cked now. People aren't gonna be paying back the loans. It's over. The Great Housing Ponzi Scheme is over.
122 comments:
I have to say it's fascinating that Jim Cramer is not following the script.
Could this be a sign that the govt has decided to hang the REIC out to dry?
Or is Cramer not beholden to anyone, and he's just calling 'em as he sees 'em?
very very eeenterrrresting
Obviously some triggering event has occurred in his mind that has caused Mr. Kramer to suddenly start advocating such an HP position. What it could be one can only speculate, but either he has a new backer that wants him to adopt this position or he truly has decided to come clean as to what everyone else wants to keep nder the surface or something in b/t.
Keith you will be able to shut down pretty soon!!!!
I saw this on Housing Doom, and couldn't belive it either. . .I remain speechless from yesterday's Jim Cramer - KEITH - are you now coaching Jim??? Are you now writing his scripts???
Even I had doubts that this housing mess would crash the entire economy - I felt the financial system could handle it, but now a few more French funds shut down today, and all over the world people are in panic . . .we haven't even heard about Chinese losses on CDO junk. . .it is only the first 5% of the 95% of the revalations. . .
i'm pretty sure he's joking folks and making fun of HP types, come on lighten up here
I heard this line for years in SoCal in 91 to 96 during the bust it was :
'why should I keep paying the mortgage when I can rent the same house for half my payment?'
Then they mail in the keys.
I worked for a major major mortgage company in the foreclosure department. it was brutal and lasted so long, think Ohio, rust belt (houses are cheaper than new cars!). It can happen anywhere.
just as quietly as it began
it ends
Glad to see Jimbo joining the tin foil hat crowd at HP!
Kudos, Mr. Cramer!
Jymkata
Uh oh... the video is no longer available.
video has already been pulled.
amazing...the video has already been removed!!!!! booooooyahhhhhh!!
If the Hedgies were like the Mafia, Jim would be sleeping w/ the fishes tonight. LOL
I KNOW that those HF managers can't be too happy with this video clip.
Wow is all I have to say. I have family in the Inland Empire (none who bought recently), and I sent them the link with the video where Cramer put out the hit on the 909.
The new video has been removed...anyone know where the source is? New link?
Cramer is a wealthy guy. He has no long term debt. Why should any FB or 20-something credit card junkie take his dumb advice? The "walk away" is bullsh_t because the mortgage holders will simply turn people over to the collection agencies. When that happens, credit scores drop, and many of those "important" credit cards will get called in or capped. Then the poor bastards who took his glib advice will have a tough time renting, buying insurance, or even finding a job because all of those now involve background credit checks.
Cramer is a tool.
He's right.
But it's all part of the game which began when Alan Greenspan cut the Fed funds rate to 1% after 9/11. That was an overreaction. But the financing boom then was on. Wall Street smelled a chance to make dough and, well, hired on Freddy Krueger & Jason. The mortgages got chopped up into investment profducts and funds seeking high returns from high yields chased. The frenzy was encouraged by Greenspan saying Americans should get adjustable mortgages. Then Bush put a Medal of Freedom around Greenspan's neck. Ultimately scheme ran out of greater fools.
Now we're on the downside. There's a ton of shorts & puts. If ever there was a time to find Osama, the time is getting soon, because there's a whole lot of unwinding to come.
wow, i don't think our corrupt government liked this one. Video seems to be removed.
It now says this video is not available, is the REIC engaging in censorship. Wow, American home mortgage down 87% today, anyone short on that, what a sweet profit that would be!
Correct the youtube link.. use the one on housingdoom
Is this the moment of implosion. All these months of the MSM, the FED, the REIC trying to prop up the market. But you can't defy the laws of economics. And when the nation has such gigantic levels of income inequality, I got a laughable 3.5% raise this year.
I'm getting a message when I click on the link - "this video is no longer available". Maybe they pulled it for being too controversial? Anyone else have another link to this?
This is why we cannot have a Japan-style 15 year real estate deflation. Americans are not going to faithfully pay these loans back oh hell naw!!! It's going to be much more violent a crash than the one in Japan.
Otherwise upstanding middle class families mailing in the keys? YES
A home was never supposed to be pimped the way it has been the last few years.
The amount of people who's savings have been exhausted and are heavily in debt have never been higher. Sound fiscal policies don't attempt to induce such behavior. And the dollar is going to pay for it. And everything traded in dollars.
The Chinese have gone from bicycles to cars. How odd that we're going to go from cars to bicycles?????
Video taken down....stop the panic is the order, next comes a gag order on Cramer.
How long before Larry Kudlow criticizes his former bunkermate? Larry's world doesn't work when people walk away from their obligations. That's hippieish.
"Video is no longer availible"
Looks like someone pulled this one fast. Beware of the REIC...
Alan Greenspan got awarded a presidential medal of honor. If Jim Cramer gets an invitation, it's likely to be a presidential strangle.
YouTube killed the link
But you can go to thestreet.com, look under videos, then Cramer on Demand.
The video is dated July 31st and is titled "That's Right - If your house is down..."
Here's the link to the Cramer on Demand page
http://videoplayer.thestreet.com/?puc=tscnav&ts=1185917120953
http://food.yahoo.com/blog/continentalchef/739/dress-up-ramen-for-dinner-in-minutes
The TRUTH is now out ... there is no way to keep hiding what's really going on.
The REIC will have a full-time job soon attempting to pull videos which expose the sordid truth about the housing catastrophy, and it's far-reaching effects on the economy.
In the preceding comment ,"the govt has decided," implies some conspiracy by some corporate-media-financial- ivy league-world government elite.
As Napoleon said, "Never ascribe to malice that which be adequately explained by stupidity."
Question to a sheister....er lawyer in the house. Suppose an FB mails they keys in with a note saying "I'm taking Cramer's advice". Can the lender sue Cramer? Imagine thousands of FBs walking away and blaming Cramer for it...dude could be toast in lawsuits.
Doooopey...
Doooopey...
How's that CFC long working for ya?
How's that permabull bullshit choking you today?
LOL... DOPE!
Before he spouts out giving advice, the network should consult a lawyer.
In most states if you default on mortgages, lenders can go after all of your assets, including retirement plans, 401k, Roths, etc. Not only will the lender take the contents of those accounts, but they will be liable for additional taxes for what is considered early withdrawl of funds. If that is still not enough money, wages will be garnished, and for certain jobs that require high degee of trust that will result in demotion or dismissal.
If you are in one of the few states that has non-recorse mortgages, borrowers should be aware that if some bit of fraud is found during the process of applying for the loan (such as lying about income, lying about using the house as a primary residence, lying about marital status, lying about other debts owed) the lenders will be able to get the court, or the borrower to invalidate the non-recourse element of the loan, under the threat of refering the matter to criminal court for fraud prosecution.
Also, borrowers should also know that in states that have non-recorce mortgages, non-recorse only applies to the first mortgage at the time of purchase. If you refinance or take out additional loans, they are all considered recorse mortgages.
"marketmonkey said...
Cramer is a wealthy guy. He has no long term debt. Why should any FB or 20-something credit card junkie take his dumb advice? The "walk away" is bullsh_t because the mortgage holders will simply turn people over to the collection agencies. When that happens, credit scores drop, and many of those "important" credit cards will get called in or capped. Then the poor bastards who took his glib advice will have a tough time renting, buying insurance, or even finding a job because all of those now involve background credit checks.
Cramer is a tool.
July 31, 2007 10:05 PM"
Good reasoning, monkey. But one problem: the problem is societal. The bills still need to be paid. Debtors and mortgage flunkies will get housing because someone is needed to pay the bills. Either that, or throw out capitalism.
No link embed code that I can find so go here now
http://tinyurl.com/2kqgnf
or housingdoom (who kicks ass by the way)
Here's the transcript thanks to housingdoom:
Transcript:
Torabi: "I have to bring up a video we did yesterday that was entitled ‘Walk away from your house’".
Torabi: "Jim Cramer says, y’know, ‘there is a time to walk away from your house’. To re-visit the video yesterday, you said, ‘when your house is down 20%, essentially, when you have no more equity left…’"
Cramer: "Right"
Torabi: "…that’s a good time to sell…"
Cramer: "Yeah"
Torabi: "… but what [unintelligible] because that"
Cramer: "Well not just sell, to walk away. You can’t sell it."
Torabi: "How do you walk away?"
Cramer: "Well you just default on the mortgage. It makes huge economic sense. You go rent. Uh, you don’t want to lose your job, so you keep your car. Uh, you keep your credit cards so you can buy, and all that really happens is is that you made a bet and you lost, so don’t compound it by continuing to pay."
Torabi: "Now the hierarchy of debt, you were saying also that y’know, your credit card debt should be less of a priority than if your house is losing value"
Cramer: "Oh, yeah, credit cards are much more important than your house. Remember, your house is only a good bet if you can build equity. But if you are going to lose money each month, you might as well rent. You shouldn’t own."
Torabi: "And, but, yesterday you’re also saying there are no places in this country where there is value in homes. A lot of homes are depreciating…"
Cramer: "No, No, there is no place where [mumble] you wouldn’t be down on your home if you bought it in 2006, that’s what the issue is. So, I’m saying that buying homes in 2006 was like buying the Nasdaq in February of 2000. They’re very very similar - it was better to be margined out than to continue to put capital against those Nasdaq stocks."
Cramer: "There was a report this morning by David, I believe it was David, uh, Blitzer, on, when I was on with the wonderful and fabulous Erin Burnett and it was that the, some housing prices have, uh, been, have actually stopped going down and some are going up and I just think that’s not true. I think, like, bad CDOs, and, like, bad leveraged loans, the actual mark to market is down everywhere. I get that from the 5 homebuilders whose conference calls I listen to. There are no up markets, and there are markets that are falling 20-30%, and those are the ones where it’s much smarter to walk away from your house."
Torabi: "Is the 20-30%… what’s that based on, or is that just…"
Cramer: "It’s where the, uh, purchase prices are, uh, when you back in the discounts. The discounts are very hard to see, cause all the homebuilders do two things: One is is that they offer incentives that don’t surface, so the list price is $250,000, but you’ll get rebates just like a car, so the list price of a car is $25,000, y’know, but you’re really only paying $18,000, so take in that, and the second thing is is that there’ll be Realtors, and what’ll happen is is that you’ll say ‘look - the list price is $225,000′, but you can negotiate down and go $190,000. I’m using the negotiable prices.
Cramer: "This is happening in the inland empire, in Sacramento, uh, it’s happening in Phoenix, it’s happening in Denver, and it’s happening in Las Vegas, and in southern California, uh, anywhere near the bread, the so-called bread basket, Modesto, these are all places where there’s tremendous overbuilding, and where it may pay to leave your house."
Wow! Kramer, given all the recent vitriol about blogs and the attack on free speech in this country as of late (see Bill O'Reilly, DailyKOS and Implode-O-Meter) you might want to check yourself before you wreck yourself into a court room with that kind of provocative recommendation to listeners.
Oh, and for the record, Hi Jim! I, and many like me, admire your candor and your show, man!
And a great big BOO-YA from the insanely overvalued OC, California!
Jim Cramer is smart and cynical.
On CNBC, he is making up batches of koolaid.
On his own videos (e.g. TheStreet.com) he is cynical and honest. He talks about all sorts of manipulations that funds do which are mostly illegal but nobody gets caught.
Why does he do this? Because he knows CNBC is propaganda, and as long as their checks clear, he will keep to the propaganda line---while on the air on CNBC. I'm sure his contract with them says that whatever he says off-CNBC is his own business and not theirs.
He is the anti-Kudlow, who apparently really does believe all the BS that comes out of GWB's arse.
To some degree, Cramer is right about this. Think about it like a Vulcan or a hedge fund trader.
In any transaction, there are two sides to the trade. There's risk and reward for both of them.
The banks were making a much much fatter interest margin off the subprime loans---the profit is really mortgage minus bank's cost of capital (roughly treasuries), so a subprime at 9% is much much more profitable than a prime at 6%.
What, did they think all that profit was there for free?
Any hedgie with experience knows there's no such think as free money without a catch.
No, there is somebody on the other side of the trade (the borrowers) and they just decided to vomit their position.
Borrowers' defaulting on the loans is nothing more than the Risk Event the banks were hoping to avoid---and avoided for years---while they made fat profits.
Telling people to hang on is just rewarding the banks when the banks made the wrong trade.
When that happens, credit scores drop, and many of those "important" credit cards will get called in or capped. Then the poor bastards who took his glib advice will have a tough time renting, buying insurance, or even finding a job because all of those now involve background credit checks.
If it's one person that person has a problem. If it's a million, society has a problem. If the alternative is being out $100,000 in cash versus a potential problem of undefinable terms, most people will take the problem and avoid the cash hit.
They'll just say, "Yeah I got suckered by the mortgage fine print, like lots of other people, and my wife was hormonal for a house. You know how it goes. I know alot better now sir and I'll do a good job."
Will Cramer be on CNBC for his show today? I have a feeling today will be a rerun.
better to rent? did I just read that correctly? I declare today 7/31 shall from now on be officially recognized as RENTER APPRECIATION DAY
booo-yaaaaaa
Don't clear your browser cache. It might still on your computer. It's a .flv file. If you watched it with Internet Explorer click:
- Tools
- Internet Options
- Settings
- View Files
- (Temporary Internet Files folder launches)
- Sort by size
- If still have it will be several mega-byte size file pointing to YouTube.
- Right-click on the Name and click copy
- Paste it to your desktop to save
file
- Can upload to YouTube or Google Video for hosting.
DOPES, the market's up 100 points again today and.....oops, make that 50, and......hmmm, make that a flat market, and.......oops, down 150. OK, so I'm the dope.
>>>Then the poor bastards who took his glib advice will have a tough time renting, buying insurance, or even finding a job because all of those now involve background credit checks.<<<
That is how it has worked during normal times when foreclosures were infrequent. If enough voters, I mean people, start walking away from their homes they very well may get some legislative relief. One option may be the FB's suing the bank, appraisers, and everyone else for fraud, etc.
Once a problem becomes large-scale the way it is dealt with changes. (sometimes)
Just some food for thought.
Cramer remembers all the bad advice he gave his following during the dot-com bust. Lost his investors billions. He was crucified for that. He doesn't want to let that happen again.
What happened to the video link? can someone repost it?
The original video is still on YouTube.
http://www.youtube.com/watch?v=c7e9H4zTqk4
If the video disappears, shout out. I saved it to disk.
"Anonymous said...
DOPES, the market's up 100 points again today and.....oops, make that 50, and......hmmm, make that a flat market, and.......oops, down 150. OK, so I'm the dope.
July 31, 2007 10:43 PM"
Well done!
"THE TROLL HATES OUR FREEDOM!!!!"
Two Things:
1. He must be an HP fan. He included Phoenix and Las Vegas in the worst markets list which most MSM reporters (or bloggers for that matter) will not do and he used the term "Mark to Market" which has been a major player on HP over the last month. I haven't seen any other bloggers use that term.
2. This blog often discussess when FBers will move from Denial to Fear. I have never seen anyone in the MSM come out with a statement like that. Will 08-01-2007 be the day Denial becomes Fear?
Market rally find of fizzled today. If there's no rally in the next few days we have finally reached the endgame.
Cramer has always been a cheerleader so I'm totally blown away by these last two videos.
Its soooo funny he says the Inland Empire/Riverside/909 area code in CA should be PLOWED UNDER!! LMAO
He must have lived there. Its truly awful. All the high prices of CA and none of the beaches and no high paying jobs. Its hell. Los Angeles County welfare magnet also just like palmcaster.
Hmmm...
I wonder how Greg Swann Dive feels right about now?
Oh, nevermind. He's in class studying to become a repo man.
The Stages of Truth
1. Ridicule
2. Violent Opposition
3. Acceptance
Moving now from stage 2 to 3.
Oh puhleeze get a grip folks, I was just messin' with you. Sometimes it's too easy to get under people's skin.
Thanks for the advice, Jimmy. Like always, you're about 2 years late to the party. ;-)
Nice to see him at least finally clue in.
I'm sure there are many who are now "amazed" by what's now coming out of the mouth of talking-heads like Kramer.
However, it is logical, and Kramer
will start looking pretty foolish to keep denying what is now becoming more apparent by the day - housing is a bust in this country.
It's also logical that so much of the world will be impacted by the losses to follow - so much was tied up in speculated real-estate values.
This is just the tip of the iceberg.
~~~
Mark in San Diego said...
I saw this on Housing Doom, and couldn't belive it either. . .I remain speechless from yesterday's Jim Cramer - KEITH - are you now coaching Jim??? Are you now writing his scripts???
Even I had doubts that this housing mess would crash the entire economy - I felt the financial system could handle it, but now a few more French funds shut down today, and all over the world people are in panic . . .we haven't even heard about Chinese losses on CDO junk. . .it is only the first 5% of the 95% of the revalations. . .
This is AWESOME!
I am a long term RE Investor that bought a while ago, and during this "boom" have been dealing with lower than average rents because the banks were handing out free money. Now the MSM is telling everyone to rent. Damn! I guess it is going to be a good year....BTW, I am in fixed mortgages, and have plenty of cash in many different places earning a good yield, so things would have to return to 1998 1999 prices to hurt (which may happen, but oh well). See, there IS still a way to make money in RE. We just got off the buying bubble, now comes the rental bubble. Do you think people will start lining up early in the morning for a rental contract and outbidding each other for monthly rent.....
I guess Cramer is right, there is a bull market somewhere......
Damn, and they will no longer be able to give me the song and dance I have had to put up with when I want to raise rent "Well if you raise our rent, we will just move out and buy, you know I can buy just as cheap as rent because my Realtwhore told me so"
Bring it on Cramer - Cramerica may be a good place after all!!!!
Strangely enough, in many jurisdictions you can be sued for encouraging someone to breach their contract, it's called, "Tortious interference." But I would assume as a journalist, he would be protected by the First Amendment, or at least he would have.
Note to last poster - rents will collapse in this country
* Millions of unwanted unneeded homes that will be rented out by desperate investors and homedebtors
* Massive REIC-led job loss
* Jobless hispanics go home
* Recession/Depression
Sorry to break the bad news. But it was pretty obvious, no?
Greg Swann has one listing
http://www.bloodhoundrealty.com/listings.php
i'm pretty sure he's joking folks and making fun of HP types, come on lighten up here
I'm pretty sure you're an idiot. He is clearly dead serious.
Cramer said he lost $200,000 on his last house that he just unloaded
Cramer is a momentum trader. He just goes with the flow -- people see this as an erratic contradicting opinion.
Maybe he just sees the big flow in the downward direction. Going with the flow...
Where's that dumb "bubbles are for bathtubs" bimbo nowadays?
YouTube still available...
http://www.youtube.com/watch?v=c7e9H4zTqk4
What would lead anyone to believe he was joking? He clearly tried to revise his earlier statements by saying he was talking about people who bought real estate in 2006. If it's satire, it's very poorly done.
Organization Accused of Plumping Foreclosure Numbers for News Media and Congress
http://tinyurl.com/2rudl9
The Mortgage Bankers Association is basically saying that all the foreclosure data is overhyped. When everything comes crashing down and you need someone to blame, always blame the messenger.
Seems to me like a full-on panic is underway.
We are all about to learn a valuable lesson concerning liquidity/debt and real money stock. Cash is king, and credit is toast. To say that we will see folks defaulting on everything imaginable is an understatement.
Those that moved aside while the sheeple jumped on board will get all kinds of assets for pennies on the dollar.
As an aside, they pulled his "market manipulation" segment, and now this has been pulled. LOL! Boo-Yah indded!
Anonymous said...
Obviously some triggering event has occurred in his mind that has caused Mr. Kramer to suddenly start advocating such an HP position. What it could be one can only speculate, but either he has a new backer that wants him to adopt this position or he truly has decided to come clean as to what everyone else wants to keep nder the surface or something in b/t.
He gave away what he wants yesterday. A 1.00% rate cut by the FED. Does anyone know where he can buy Dorothy's Ruby Slippers? Poole said today not to count on the FED. It shot it's wad with housing, and has no ammunition left.
I'm pretty sure he prefaced this stuff with how he was acting like a bear - check around.
Yes, impressive. But not exactly helpful. Somewhere between yesterday and the ramp up, there had to have been a time when he should have advised people to sell. Apparently he went from "buy" to "walk away".
And Jargon Jim's walking away advice might be great for the individual FB gambler, but it's going to hurt the rest of us, no?
I love all of the talk about how "your credit will be wrecked if you go under and you'll never be able to get a job again!"
Two observations:
1) So many Americans will have wrecked credit when this whole thing is over, that "credit scoring" will go the way of the dodo;
2) Most of the Americans who are going to get nuked the hardest have fantastic "credit scores" yet still overborrowed;
3) Demand for someone -- anyone -- to rent will be so great after the crash that landlords will take just about anyone who has two cents to rub together. When the bank is demanding the mortgage on the apartment building get paid, the last thing you're going to do is turn away someone who *might* pay rent on that half-empty building (or empty house) when not many people are interested in the first place.
When will people realize, it's over? The economy is fucked. Threatening people with personal economic armageddon if they stop trying to swim in debt doesn't work when we're facing economic armageddon anyway!
Frankly, it couldn't happen to a nicer group of guys.
This is unbelievable. Are you sure that this is not some kind of a joke?
...Grab a tube of KY!
Some donk on HBB is saying that this was all a joke...whatever I think if he ever joked about this it would be very detrimental to his career.
Can't he be sued by lenders of these loans that he is encouraging people in mass to default on?
Wow! It is hard to be a troll today.
Remember earlier this year, when he brought his pal Mozillo on for a classic Mad Money CEO pump & dump session? Remeber how everything was overblown & subprime was insignificant. Now that Angelo has cashed out of all those options, Cramer can be honest. I wouldn't be surprised if all of his old buddies at Goldman have mortgage lender & home builder shorts all over the place. They gotta make their money back somehow on all that bad paper that they bought.
>>> I heard this line for years in SoCal in 91 to 96 during the bust it was :
'why should I keep paying the mortgage when I can rent the same house for half my payment?'
Then they mail in the keys.
I worked for a major major mortgage company in the foreclosure department. it was brutal and lasted so long, think Ohio, rust belt (houses are cheaper than new cars!). It can happen anywhere.
July 31, 2007 10:02 PM<<<
well if you walk on the house, they will repossess the house. then they will try to sell it and if that dosn't work then they will auction it off with a reserve price attached and if that doesn't work, then they will auction it off for what they can get.
the problem is that once they do this, they will come after the man or woman who has the name on the contract for the difference between what they got at auction and what is owed on the house. they will take you to court and then if you don't show up, etc, they will get a summary judgement without prejudice on you and this stays on your credit for ten years minimum and messes it up forever, really........because at the end of the ten years they can go to court and have the time exteneded another ten years....and this is also with interest accumulating on the principal......so sooner or later, they are going to get their pound of flesh from you, one way or the other...they might have to wait until you die and when that happens they will come and take the money owed out of your estate. and in the mean time your credit is shot and you can't get any credit cards, etc.......not only that but you cannot buy another house on credit. now this judgement is entered in the county recorder's office in the county where the house was located. a lot of times they keep up with you if you move. so they will enter it into the record of any county where you end up as well....
so if you think you are leaving your problems behind by walking on the house.....you have another
thing coming.....
oh one more thing. when you walk on the house, the bank takes a loss on the house etc...
the loss is deducted from their operating income and comes off their taxable income.....and on the other side of this, the bank will send you a 1099 for the amount of loss on the house......so on top of the judgement you have taxable income from this deal, that you must pay taxes on......its a wonderful life isn't it?....
Thank you for clearly saying what had to be said:
There is a Gawd.
Market up tomorrow dollar in the downward mode, just a thought.
Keith,
Now that we are vindicated and we know that shit is going to fly. What do we do next? What is the correct move to make? This is what Hp needs to concentrate on.
PS- Bork- How about a kiss.
Ok, I mailed back my keys, and I have contracted with an attorney. Kramer puts himself out to the public as an expert, the lawyer is drafting a letter explaining the expert advice I received. I want to make sure he's mnamed in the suit, deep pockets etc....
I used to make a wild wild living suing small businesses that could not conform to the Americans With Disabilities Act. I know how to play this. I'll get a copy of the lawyers draft to you for publishing.
Any way you slice it, this isn't going to be fun...houses will come down in price to levels you wanted before, but, will you still want to buy them, if they CONTINUE to depreciate...the earlier poster was right about rentals softening as well. Major, major, economic softness.
video has already been pulled.
LauraV said: I wonder if the networks will have cramers head on a plate tomorrow?
FBs need to stay current,and stay in contact with the bank,or lender.When an FB stops communicating,the bank breaths a big sigh of relief.
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The Greatest posts Ever on any blog
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Anonymous said...
"Anonymous said...
DOPES, the market's up 100 points again today and.....oops, make that 50, and......hmmm, make that a flat market, and.......oops, down 150. OK, so I'm the dope.
July 31, 2007 10:43 PM"
Well done!
"THE TROLL HATES OUR FREEDOM!!!!"
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In Chinese------------------
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Dow dropped 300pts today I see.KEWEL
Anon said: "Will Cramer be on CNBC for his show today? I have a feeling today will be a rerun".
LauraV said: I agree.
"i'm pretty sure he's joking folks and making fun of HP types, come on lighten up here
I'm pretty sure you're an idiot. He is clearly dead serious."
I dunno Mr. C. a few months back Cramer had an outrageous video out on how hedgies would engage in stock manipulation. When I watched I thought he was just screwing with the interviewer, yet the thing ended up all over the blogsphere as proof he had finally crossed over from the dark side.
I think he's stating the tongue in cheek obvious just to get a rise out of everyone. Kinda of like Serin would state the outrageous just to trigger an avalanche of hater comments....
Ah, those were the days....
Hmm. I can see that this would be sound advice if you're Casey Serin, or anyone else with negative equity and no assets. What about people that have some assets outside of their house, but bought in in the last few years and are losing money? Wouldn't the bank have recourse to seize their assets? Perhaps this applies to such a small fraction of people that have bought in the last few years that it is practically moot, but this hardly seems like sound advice for these people. The right advice would be to liquefy all assets possible and put them in an account in Switzerland or the Cayman Islands, and THEN to take a walk. Right?
I'm not a banker, broker or mortgage lender, but if one were to simply walk away from their mortgage obligation, am I correct in believing that the person doing the walking will never again be allowed to "own" a home ie. get a mortgage loan?
Mmmmmm...CRAMER...A God amongst Men...Damn, How I would love to snort a few lines off your C#$k, and talk MBS horrors into the wee hours.....
XOXO,
JanB
p.s...Keep on Rockin' in the Free World--
"i'm pretty sure he's joking folks and making fun of HP types, come on lighten up here
I'm pretty sure you're an idiot. He is clearly dead serious."
No.
He is clearly NOT dead serious.
He is also NOT sarcastic.
He is covering his ass. In 6 months he can say he was misinterpreted whichever way the market goes. I'm a bullshitting weasel and it takes one to know one.
I saw cramer on his show ( not just that video) late yesterday afternoon. He was also advising to pay up on your insurance and burn you house down, especially if you were in certain ( I don't remember specificaly) california towns. I would assume the insurance industry may have had something to do with pulling the video.
yo! my brothers and sistas.
DEBT is always paid, either by the borrower or the lender.
know the truth, and it shall set you free. but of IRS liens, never.
"The 'walk away' is bullsh_t because the mortgage holders will simply turn people over to the collection agencies."
that's probably right but I think Cramer was telling people not to put mortgage payments on their credit cards.... it was really smart advice, IMO.
I've read the horror stories about people maxing out their credit cards in order to make mortgage payments but that method only helps for a few months and then your in default anyway! So Cramer is giving sound advice, IMO!
i.e., if a home is an investment, that Cramer implies that you have to look at it as a business transaction, rationally, that means terminating it; doing otherwise would be trying to save a sinking ship because nobody is going to "buy out your debt."
My friends look at me with big eyes when I tell them: "why would I want to buy your house? because that means paying for your new car and the other things that you bought with your equity."
i never understood the whole 'mail in the keys' thing. have you seen the price of stamps?, plus you probably need to pay more than the 41cents or so for a couple keys to mail in. i say the heck with it, take the locks, doorknobs, and copper pipes with you
Cramer may think he is joking, but the joke is on him. What he describes is exactly what will happen.
It ain't over. Funds hit junk bond status. More lender implosions.
ABC looks like it might be the next one:
http://forum.brokeroutpost.com/loans/forum/topic.asp?TOPIC_ID=147343&whichpage=1
Here is one comment from many pissed off loan officers:
[We have a loan with ABC that was SUPPOSED to fund yesterday and the wire never got to the title company. We called ABC last night after being on hold for almost an hour a lady from the funding department got on the phone. She said she did not know if the loan was going to fund because she didn't even know if she would have a job tommorrow!!!! She then asked if we could say a prayer for her. It really is a sad situation for the company and everyone who has loans with them that are supposed to fund.]
[We have borrowers who have their homes packed up and in moving trucks thinking they were closing today and now just have to put their stuff in storage and wait for the next step. Yes, that was pretty risky on the buyer's side to go ahead and assume that everything would close smoothly but on the other hand it seems unethical for these lenders to all of a sudden just halt business. It really is terrible.]
The whole thread (and some others) are mighty interesting reading from the grunts in midst of the whole mess.
Cramer, I thought, gave really dumb advice. I would try and sell and, barring that, try and short sell before going through foreclosure. Credit cards? No, thanks, Cramer. I pay cash. Credit cards are for those living beyond their means. Keep the car payment? Nope. Sell and buy something that is paid for.
Cramer vs. Dave Ramsey? I'll take Dave's advice on this one.
What if China and other large U.S. bondholders "just decide to walk away?"
Maybe it's a good thing Hank Paulson is still in China.
Knock at the door...
Sherriff's department: "Eviction notice... gotta get out... you should have done what Jim Cramer told ya... you should have walked away."
If Cramer says it time to get out it must be about time to get back in.
Out of control! Blood on the street...
I have NEVER seen cramer talk like this!!!!!
He was depressed, sullen, distraught!
He said he "sold all his positions" and encouraged people to "stop buying real estate" and "get out if they could now" he says leave the banks on the hook??
Cramerica must be reading the blogs as is every other news outlet because if they don't follow the independent media's truth as it is being correctly observed and reported without any conflicts of interest, otherwise they loose their "street cred".
Way to be on top of the game Mr. Keith!!!!!!
Maybe the MSM will pay you for your insights into "the market" instead of relying on Maria (I get free flight trips and perks from citibank)or anyone else with a leveraged position with skin in the game.
copied from HousingDoom
When I hear stuff like this, I immediately run in and re-read 2 Timothy 3 : 1-4.
Does this ring a bell with the "walk away" mentality?
Perilous Times and Perilous Men
1 But know this, that in the last days perilous times will come:
2 For men will be lovers of themselves, lovers of money, boasters, proud, blasphemers, disobedient to parents, unthankful, unholy,
3 unloving, unforgiving, slanderers, without self-control, brutal, despisers of good,
4 traitors, headstrong, haughty, lovers of pleasure rather than lovers of God,
5 having a form of godliness but denying its power. And from such people turn away!
Cramer summed it all up in just one line: “Just walk away.”
Makes me wonder… How does he regard the other commitments and promises he’s made?
(wife, employees, peers, investors, others?)
I don’t know this Cramer from the one on Seinfeld… but wholesale societal acceptance of this sort of stuff is a great sign for those waiting for Christ's return!!!
(I'm not trying to threadjack this, so don't start a flame war and get all lathered up. Take it... or just leave it alone. As with all things of God, the choice is yours alone. :-)
Booyah home owners!
I agree with Jim. Credit is going to go sky high anyway soon so what if you get a default or bankruptcy on your record. You were too stupid to be borrowing anyway so you're doing yourself a good one.
Hey Keith, how about a new byline:
"Harvest time for the bubble waiters". Or something similar.
I live in the Inland Empire, up in the mountains above it actually, but I bought at the very bottom so I'm not afraid!
I can't wait to go out and play "pick your house" in what will become a house graveyard in the next few years.
By the way, it's Cramer, not Kramer.
I had a $10 strike put option on that sucker so I was happy.
I got some on IMB and ANH. I'm hoping for another harvest tomorrow.
Cramer is the only one in the media who will tell you the truth.
Don't listen if you don't want to hear it.
"Millions of unwanted unneeded homes that will be rented out by desperate investors and homedebtors"
-----------------------
Don't get me wrong, for I would love that to happen, but I don't think it will. Those unwanted homes will most likely sit empty, a total waste of space and capital. Rents may fall (Allah be praised) but the above probably won't be as great a factor in it.
The Thinker said...
Strangely enough, in many jurisdictions you can be sued for encouraging someone to breach their contract, it's called, "Tortious interference." But I would assume as a journalist, he would be protected by the First Amendment, or at least he would have.
I concur. He can not be sued for tortious interference because that requires interference with a specific contract between specific individuals. Maybe that is what you meant when you said "encouraging someone" but your reasoning regarding the First Amend. didn't logically follow. If that was so, most of us here could be in trouble for tortious interference for saying AHM is poo-poo.
Just thought I would clarify. With all the heavy lawsuits flying around on insider trading I think this is important to know.
Further, that little legal disclaimer on his website (as well as the one before and after his shows)means you should consider him no more than your personal amusement.
So in that vain. . .
DANCE MONKEY--DANCE!
RE Investor:
there will be no renting bubble, as the excess inventory will keep the prices in line with demand.
unlike the housing market, the rental market is driven strictly by supply and demand, and right now supply vastly exceeds demand.
i imagine it will be the owners who are lining up to rent their homes.
What Cramer said makes financial sense. Declare bankruptcy now and you credit is clear again in 7 years....
If you are underwater in your house now, with little or no possibility of that changing in the next 7 years, the only sensible thing to do, is to go bankrupt. Start the clock ticking sooner, rather than later.
Even better idea for Cramer would be to recommend people go out and get as many loans as they can - borrow MILLIONS (thank you IndyMac liar's loans), find some corrupt appraisers and realtors, then do cash-back-at-close deals, take the cash and move it to unmarked Swiss bank accounts, and THEN walk away from the homes.
I mean, if you're going to have no ethics and morals, might as well take it all the way.
And guess what - you'll never get caught. There's nobody minding the store.
Just ask Casey Serin.
Cramer looked like he was in a hostage video
IT's CRAMER not KRAMER morons, this isn't a Seinfeld blog
my oh my you mental midgets amaze me evry day. He clearly stated on Monday's show that he personally does not think this will happen. He said it about 10 times. He said he was giving the bear argument but repeatedly said that it IS NOT HIS PERSONAL OPINION.
It could not be any more clear to anyone with an IQ over 45.
Kramer, CNBC and the MSM know that sh*t's about to REALLY hit the fan. They'll then claim that they were "on top of this", despite years of worship at the REIC alter.
Anon said:"they will take you to court and then if you don't show up, etc, they will get a summary judgement without prejudice on you and this stays on your credit for ten years minimum and messes it up forever, really........because at the end of the ten years they can go to court and have the time exteneded another ten years....and this is also with interest accumulating on the principal......"
LauraV said: Sounds like today's FB homeowners are really screwed. What happens to all the 70+% of mostly I/O home loans going into default? How can banks/mortgage companies handle the magnitude of forclosures coming their way?
Who the heloc is going to buy all these homes in 2-10 years from now...if every previous FB can never buy another house using credit?
This is a big problem.
Anon said:"I saw cramer on his show ( not just that video) late yesterday afternoon. He was also advising to pay up on your insurance and burn you house down, especially if you were in certain ( I don't remember specificaly) california towns. I would assume the insurance industry may have had something to do with pulling the video".
LauraVella said: After what I heard coming out of jimbo's mouth yesterday, I know you are tell the truth.
reading this blog from far outside US and all the mediahype about this man, i wonder how one man can have such a power over someones mind
he seems to be your god or your devil
but you like those kind of people i
think
Everyone's opinions are wonderful. But the bottom line is, what does Kendra think?
had to happen in order to prepare the central governments ability to have a use for the sheeple in the midst of the depression2 by making mining and manufacturing of affordable housing and transports as projects to occupy the renagade and angry masses while they consolidate their power and control of the continent
ROFLMFAO!!
PLOW IT UNDER!!
PLOW IT UNDER!!
BETTER THAT THAN HIS IDEA OF FDR SUBSIDIES TO ALL THE UNDER WATER HOME OWNERS!!!
BOO-YAH JIMMY BOY!!!!
LOL!!!
After their 7-year break and credit is clear again --those who walked away will then be right on time for buying another home at a cheaper price.
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