You'll come away from this video thinking:
1) homedebtors are PISSED that someone is on national TV saying housing is crashing
2) the NAR is run by discredited monkeys who simply cannot and will not tell the truth. Period.
3) Cramer has the guts to stand up to the REIC. Little late to the party, but nice to see someone of his popularity and stature added to the HP/Peter Schiff/Robert Shiller mix
4) Housewives all over America are now freaking out
5) People don't want to hear the truth. America has based its economy and retirement on housing. When it blows up, the whole thing blows up. Blame the messenger, put your head in the sand, but don't admit the truth: IT WAS A GIANT PONZI SCHEME THAT IS NOW COLLAPSING!!!
6) HousingPANIC has finally gone mainstream
I especially loved it when Matt asked the NAR idiot where would be a good place to buy a home and he couldn't answer the question! He finally and hilariously said Indiana and Michigan and Cramer called him a lying idiot just trying to sell overpriced homes right to his face. Could the NAR be doing a worse job right now? Idiots I tell ya!
The correct NAR answer to the question (while still spinning) would have been "home prices are going to come down so there'll be some great deals out there for buyers, and sellers need to be realistic with their prices if they want to sell"
But that's what an intelligent person would say vs. the idiots the NAR throws out there...
Enjoy the video. I sure did.
September 30, 2007
Housing Crash Goes Mainstream: Here's the youtube video of Jim Cramer on the Today Show Friday debating the NAR president-elect
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I'm only 1/2 jokingly saying this, if Cramer says don't buy it's buying time. Has this guy been right about anything in the past 5 years?
Chevy Chase says, "Stated Income Is Back". Unf**king believable.
http://www.chevychasewholesale.com/rates/whlbrokerweb.pdf
The correct NAR answer to the question (while still spinning) would have been "home prices are going to come down so there'll be some great deals out there for buyers, and sellers need to be realistic with their prices if they want to sell"
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But that will cut into the RE agent's cut!
Three comments on this video:
#1: Did you hear the reic boss try to play the emotional card? "Sheltering those who are most precious to us in our lives", or whatever crap that was? A rented house will do just as nicely, and leave money left over for luxuries like food and clothing.
#2: At the end, he tries to shout over the host that "houses aren't stocks". REALLY???? This is news to me. Treating housing like stocks has been the game plan for the last several years for the reic.
#3) Then he cites a study that assumes 5% appreciation? Why didn't Cramer smack him down with the negative appreciation that many are experiencing? Oh well.
Mostly, we got a sneak peek at the new hustle coming from the NAR. The pitch:
* Buy a house or you are neglecting your 'precious ones'.
* Houses are a place to live, not a stock.
It's a great time to buy.
Hug your realtor, it's gonna be a rough fall.
B
Why you dissing housewives?
I'm a housewife and an HPer!!
* not ripping housewives - just pointing out that's who watches The Today Show and as go housewives, as goes America
* The NAR idiot quoted a "harvard report" which you just know was one done by The Corrupted Nicholas Retsinas and his REIC-bribe-supported Harvard Joint Center for Housing Studies. The REIC pays for the report, and then uses it to justify their evil deeds
* Cramer has found housing jesus. But what took so long? My guess is that he didn't want to come out until he could sell his personal real estate holdings
It's too bad Cramer was so wrong about real estate for so long. I'm sure that all the uneducated folks who heard him SCREAM that THERE IS NO HOUSING BUBBLE back in 2006 are wondering why they listened to him.
The fact that I've seen him interviewed on this (as the voice of reason) so many times recently makes me sick. Not once has anyone said, "Are you sorry for screaming that there was no housing bubble back in 2006? Are you sorry that you probably convinced thousands of people to buy houses at the very very very top of the market and their lives will be ruined because of it? Can you understand why these people HATE YOU? Like REALLY HATE YOU, CRAMER? Do you get that??????????????"
Get off your high horse you piece of shit!
I just checked out a 4-bedroom house for rent last month in West Michigan. They were asking $2,500 per week.
That's $10,000 per month!! NOT a good deal.
Although it had a great view and it's own sandy beach front on Lake Michigan! Nice!!!
Speaking of Retsinas, where has that little REIC bijon-frise been hiding lately? Haven't heard his empty, high-pitched yap for quite some time.
But Cramer has is doing us a favour in 2 ways: 1) he is helping to make the notion of a housing bubble that much more mainstream; 2) he is helping to discredit Realtors and their corrupt influence on quality of life.
Now we just need someone to adequately discredit Cramer and this morally corrosive mindset that it's okay to get rich from gambling on the stock market, doing little of material value whilst enslaving your fellow man.
There is a reason why gambling (on stocks or in casinos) is considered a vice - it's popularity is one hallmark of this morally bankrupt society.
Can someone post the youtube links when they're up because cnbc never works for me.
Will low rates in combination with a bailout of sub prime save real estate?
Will the lending industry get regulation?
How will the fed work with the new administration?
Will the debit and deficit become an issue causing a reduction of government spending?
How will housing employment recession impact the broad economy?
How does high inflation without increases in wages factor into loan affordability?
Is high gasoline part of my expense in buying affordable housing far from my work?
Is it possible that people will spend less when their perception of the economy is unfavorable?
I feel things may improve in a year but do not have a good longer term outlook.
Wow, it's like we've traveled back in time to a place where internet video didn't work (though we'd pretend it did).
The last few videos wouldn't work on my work computer, XP home computer, or my iMac.
Maybe it's just me.
OK, I got it to play partly. I missed the end though where the Realtroll started saying "there was a Harvard study that shows given a 5% rate of annual appreciation ..."
The video cuts off for me there. I presume he was saying that if houses increase at 5% per year, you'll make a ton of money. It doesn't take a Harvard study for that, any monkey with a spreadsheet can figure that out. And of course there is that pesky historical data showing housing beating inflation by 1% at best over the long term
Question -- would someone who was able to watch it summarize the remainder of the clip? I hate the bastards at NBC -- a youtube link would be even more appreciated.
I here that word alot - "PISSED" ... it's right up there with "COOL" and "NO PROBLEM".
House debters should be REALLY PISSED that this news didn't come out along time ago on the major media networks.
These real-estate cheerleaders have become really laughable, and deserve no credebility as they continue to paint an obvious housing catastrophy as a rosy picture.
Anonmyous Said ...
#2: At the end, he tries to shout over the host that "houses aren't stocks". REALLY???? This is news to me. Treating housing like stocks has been the game plan for the last several years for the reic.
Exactly - and like a novice in the stock market - it's easy to get burned hard.
2) the NAR is run by discredited monkeys who simply cannot and will not tell the truth. Period.
How long before that statement gets accused of being racist? Not saying it is - just saying that someone is bound to bring it up.
examples
Cramer is a dick. One week he's screaming, crying and begging Bernanke to bail out his hedge fund buddies and a few weeks later he's urging GM to break the UAW. He lacks a moral and ethical center. He exemplifies everything that is ferile and corrupt in our current financial system.
The real story is the continued existence of this blog. I mean come on Keith. Your work is just about finished here. The statue has been toppled. The dragon slayed. CNN/Time polls show NAR credibility below that of car salesmen (the main reason IMOHO that David Lereah was fired). Time to go on vacation. ;)
I've got a study for you...
If you buy a house with 0% down and assume an annual 40% returns, what are you left with... a bubble of epic proportions.
And that harvard study is "assuming" 5% gains. Sure, 5% would be great right 'bout now in the housing market, but what are we seeing? 5% losses. So let's flip his number upside down, and you're not seeing 90% returns in 3 yrs, you're seeing 90% losses.
From the horse's mouth.
cnbc video does suck - someone give me a youtube of this cramer stuff
anyone?
I would, but don't get the today show over here...
TULIP BULBS ARE STILL WORTH 2 MILLION A DOZEN!!!
BUY NOW BEFORE YOU ARE PRICED OUT OF TULIPS!!!
DOPES!!!!
To the guy who said: "The last few videos wouldn't work on my work computer, XP home computer, or my iMac"
I've got a Mac Pro. I can play the CNBC videos in the Firefox browser if you load Flip4mac. They won't play in Safari. Haven't tried Opera.
I run a virtual machine on the Mac with Vista. The videos play fine in IE 7...
Observe mr retard real estate agent didn't mention the 10% cost of turning over the house with commissions, taxes etc...
Cramer needs to invite some bubbleheads on the show...
The real story is the continued existence of this blog. I mean come on Keith. Your work is just about finished here. The statue has been toppled. The dragon slayed. CNN/Time polls show NAR credibility below that of car salesmen (the main reason IMOHO that David Lereah was fired). Time to go on vacation. ;)
================================
At some point a good name for this blog might be:
HousingPANIC - The Aftermath
This blog has become a great discussion group on: USD, GOLD, GEOPOLITICS, and more. There is no reason to shut it down either now or after housing starts is ultimate recovery phase, at perhaps 60% off of todays prices.
I think we got us a Yut-Yo Moment folks. For those poor souls who actually thought the FED cutting rates would matter. Poor poor dears!
This most definitely qualifies as a Yut-Yo Moment:
Libor Costs Soar as Banks Seek Funds Over Quarter-End (Update3)
By Gavin Finch
Sept. 28 (Bloomberg) -- The cost of borrowing pounds, dollars, and euros overnight rose as banks sought funding over the quarter-end amid a credit squeeze, and as U.K. lender Northern Rock Plc borrowed more money from the Bank of England.
The London interbank offered rate that banks charge each other for overnight loans in pounds rose 20 basis points to 6 percent today, the highest in 10 days, British Bankers' Association figures showed. The corresponding rate for dollars rose 21 basis points to 5.30 percent, and the euro rate climbed 6 basis points to 4.23 percent.
Interbank market rates have soared as concern that losses on securities linked to U.S. subprime mortgages will spread keeps lenders from providing money to all but the safest borrowers. The Financial Times newspaper said today Newcastle-based Northern Rock had been forced to return to the U.K. central bank for more money after a Sept. 14 bailout to stay in business.
``Coming up to quarter-end you would expect to see a small spike in Libor, but with the market so short on cash it's particularly vulnerable at the moment,'' said Oliver Mangan, chief bond economist in Dublin at AIB Capital Markets, a unit of Ireland's second-biggest bank. ``People are reluctant to lend cash while banks are scrambling to hoard as much of it as possible. This is keeping rates elevated.''
Libor for pounds, euros, and dollars has typically risen between 4 and 11 basis points over quarter-end for the last four quarters, the BBA data shows.
`Abnormally High'
The cost of borrowing pounds for three months was unchanged at 6.3 percent, after touching a nine-year high of 6.9 percent on Sept. 11. The cost of borrowing dollars was also little changed at 5.23 percent and the euro rate stayed at a six-year high of 4.79 percent.
The pound three-month rate exceeds the Bank of England's key interest rate by 56 basis points while the equivalent dollar rate is 48 basis points over the Federal Reserve's benchmark. The difference between the rate for euros and the European Central Bank's refinancing rate is 79 basis points.
``Libor spreads to official rates continue to sit at abnormally high levels,'' said Charles Diebel, head of European rate strategy at Nomura International Plc in London. ``Spreads have scope to re-widen.''
Northern Rock has borrowed a further 5 billion pounds ($10 billion) since the bailout and it now owes the central bank almost 8 billion pounds, the FT said.
Northern Rock fell as much as 5.4 percent today, while the value of U.K. home-loan providers Bradford & Bingley Plc and Alliance & Leicester Plc, which also seek financing in money markets, declined.
keith said...
* not ripping housewives - just pointing out that's who watches The Today Show and as go housewives, as goes America
---------------------------------
I have to agree with Keith on this BIGTIME! Think about it. Probably most (over 50%) of the flippers, brokers, real estate agents,etc. were and are male. But remember the old phrase "Behind every great man is a great 'woman' etc. etc.
Same principal applies here. Since big money was involved in real estate, lots of guys were naturally drawn to the whole charade. It was an ego/selfish monied interest. But, and this is a big BUT, the nesting instinct, the emotional attachment that comes with it, is primarilly, although not exclusively, a female/motherly attachment. In other words, Guys spearheaded the whole housing bubble, but women propped it up with their emotional/instinctual nesting proclivity.
In short, both genders are at fault for this mess. BUT EVE MADE ME DO IT!
Anytime you buy something that is overpriced, it is a bad investment. The goes for houses, stocks, cars, boats or even clothes. Houses have been overpriced in most of the country since 2004 and will probably be overpriced until 2009. There will be a worldwide housing crash of epic proportions. I only hope that is doesn't drag everything else down with it. Thanks greedy REIC participants
What is Cramer up to?
He plies a solid trade as a lunatic shiller.
And his Nuts! outbreak with Erin was all about succouring Wall Street.
But on Colbert he presented himself as man of the people,looking out for poor homeowners.
Now he's pitching himself full strength against the corruption of the NAR.
Is this a radical change in media strategy? A bid for prime time?
Maybe he's the new Dr Phil - a shoulder to cry on for a nation of fcuked debtors?
We live in unclear and interesting financial times. As a service based economy (i.e. one that does not make things) that is still a consumer economy we've gravitated to sectors that are "required" for everyday living that cannot be outsourced.
Finance, education, housing, retail, medical & legal services, etc. All of it is stuff that cannot be off-shored, so we jack up the prices to levels were they are unaffordable. Why? Because its all we have left.
But a healthy capitalist society is based upon a broad diversity of goods and services activity occuring w/in the borders of the same society that is augmented (not supplanted) with overseas competition/activity. Hence the pendulum needs to swing back to where the diversity of goods & services returns to w/in US borders to insure wealth created here is kept here and not exported. Not a protectionist, just saying that we need to keep diverse economic activity here to have a healthy economy.
My favorite was the 5% thing: he was talking about it as if you were buying a stock on margin...and then said houses aren't stocks. :)
Beyond that, putting in my sexified new patio in Oct, storm door gets installed on Wednesday.
<3 you guys - looks like I did buy near the bottom. Remember - when the story hits the mainstream and the news outlets all pick it up/endorse it, that's when it's time to go the opposite way. :P
I just can't get it through my head why the economists at the NAR can't even figure out what even a housewife knows. Okay I'm not a housewife but I wish I was one. If they make people understand that they need to lower their prices - their members can start making money again because they will actually be able to sell houses again.
"But that will cut into the RE agent's cut!"
some people are giving out bonuses to incent their RE agents. if you bought under marketcap, you have money to play with.
"Why didn't Cramer smack him down with the negative appreciation that many are experiencing?"
I don't think that people listen to arguments so Cramer was smart and said that you don't make money buying at the top. i.e. he's a pretty brilliant communicator who stays on message.
he had another interview here:
http://tinyurl.com/2ntt86
where he compares the housing fall to the NASDAQ fall.... and everyone on CNBC's "Squawk on the Street" was agreeing with him. This is where he makes his Pravda comments.
Use Internet Explorer to watch the video.
I had no problems.
I think Cramer went to easy on that moron-realtor .. he could have bitch-slapped that ediot ..
Housing is getting so expensive that it needs to be nationalized. Homes should be built and owned by the government and they will decide how much space each household needs. Housing is a right that every person is entitled to. Nobody should have to go without housing.
Here you go boys and girls. Enjoy the full video.
http://www.youtube.com/watch?v=N_WuwoDYPdQ
Get serious .Cramer wants a stock market run . Cramer sold his house and he is a cheerleader for stocks ,no different than the realtors were for the housing bubble .
On top of everything else, Cramer got a little power with his rants ,so now he has a Jesus Complex . Really, Cramer is a loose cannon .
That being said ,to bad a jerk like Cramer ,with a agenda ,gets to challenge the NAR rather than someone without a agenda .But any truth is better than no truth at all coming out into the light of day .
Realtors don't understand that the sooner homes are affordable, the sooner they can start making commissions again. As long as they keep trying to prop up the bubble markets, the longer this housing recession will last. Let prices drop 50% and people will start buying again. A smaller commission is better than no commission.
Cramer was sedate and polite on the Today show becasue most of the audience had no idea who he was so he couldn't go nuts without people thinking that he really was...nuts. I'm sure NBC told him to lower the volume for thier demographic. And he really did not need to say much as the clown from the NJ Realtor board made Cramer's argument for him.
As an aside the NAR is furious at the local NJ board for going off reservation and taking on the media by themselves. They really were babes in the woods and by complaining so bitterly to NBC gave a small story legs. Fools.
Housing is getting so expensive that it needs to be nationalized. Homes should be built and owned by the government and they will decide how much space each household needs. Housing is a right that every person is entitled to. Nobody should have to go without housing.
____________________________________
Hey socialist moron;
Move back to Cuba or 1970's USSR if thats what you want.
You get to live in a 1 bedroom rental for 400 a month if you can't afford a house. Move to the midwest and stop complaining.
(Yes for those of you in California, you really can rent a 1 bedroom for 400 a month in Michigan and a luxary apt for 650)
Owning a house and property is not a right entitled to anyone. In the declaration of independence only "land owners" were allowed to vote (a way to seperate the elite from non-elite citizens)
You are entitled to shelter, not a HOUSE. In fact if you look at all the bums on Miami beach you aren't even entitled that.
"Realtors don't understand that the sooner homes are affordable, the sooner they can start making commissions again. As long as they keep trying to prop up the bubble markets, the longer this housing recession will last. Let prices drop 50% and people will start buying again. A smaller commission is better than no commission."
What commissions are they going to earn after 50% housing decline? All the houses will be sold in auction because nobody is going to sell a home for a 50% loss when they financed 95%-100%
Greg said...
Cramer is a dick. One week he's screaming, crying and begging Bernanke to bail out his hedge fund buddies and a few weeks later he's urging GM to break the UAW. He lacks a moral and ethical center. He exemplifies everything that is ferile and corrupt in our current financial system.
September 29, 2007 5:14 PM
Greg, youre absolutely correct. The kind of thing Cramer is doing right now reminds me of professional wrestling. One day Hulk Hogan is a good guy and two weeks later he flips and becomes a hated bad guy. And this change happens in front of thosuands of brain dead fans. The wrestling fan forgets that the HULK just flipped his persona for the 100th time.
Jim Cramer was a cheerleader for this housing bubble and now because it suits him he's positioned himself as a "housing bear".
How many bubbles and financial crisis must this country go through before the population realizes that they are all fraudulent?
Owning a house and property is not a right entitled to anyone. In the declaration of independence only "land owners" were allowed to vote (a way to seperate the elite from non-elite citizens)
=============================
What Constitution are you refering to, the Confederate Constitution?
http://www.youtube.com/watch?v=jmt5_T2WAQc
Cramer a few months ago. He makes Swanny look good
Realtors don't understand that the sooner homes are affordable, the sooner they can start making commissions again. As long as they keep trying to prop up the bubble markets, the longer this housing recession will last. Let prices drop 50% and people will start buying again. A smaller commission is better than no commission.
~~~~~~~~~~~~~~
Well put - but it's greed, greed, greed.
NAR NATIONAL ASSHOLE REALTORS
Cramer is an idiot about a lot of things, but I think it actually took a lot of balls for him to tell the reality about today's real estate market. The Today Show is paid for by advertisers, and Advertisers don't like it when you tell the truth. Cramer is on their loose canon list now.
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Dat brotha done be crazy!
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The NAR guy is optimistic, Cramer is not. Who's wrong?
NAR folks really should just put a sock in it already. I'm really getting tired of their BS.
NAR folks who are optimistic on the re market should put thier money where their mouth is. Offer buyers protection by saying if you purchase a house and it looses value, well give you the difference. In cash!
The prudent consumer need only look at one thing here--This NAR bufoon makes his living only if people continue to buy the spin and buy houses-(aka, rapidly-depreciating assetts, and Jim Cramer-(wacky as he is)-makes his money by seeing people MAKE MONEY.
I don't agree with Cramer all the time, but on this issue, he is SPOT ON-- Realtors never have their customer's best interests as #1--They are driven only by attaining commissions--If they arent selling houses, they don't eat.....NUFF SAID.
It's A Terrible Time To Buy
Why?
Prices still disconnected from fundamentals. House prices are still far beyond any historically known relationship to rents or salaries. Yearly rents are 3% of purchase price. Mortgage rates are 6.5%, so it costs more than twice as much to rent money than it does to rent a house. Total owner costs including taxes, maintenance, and insurance are about 9%. Salaries cannot cover mortgages except in the very short term, by using adjustable interest-only loans. Anyone who buys now will suffer losses immediately, and for the next several years at least.
Buyers borrowed too much money and cannot pay the interest. Now there are mass foreclosures, and senators are talking about taking your money to pay for your neighbor's McMansion.
Banks happily loaned whatever amount borrowers wanted as long as the banks could then sell the loan, pushing the risk onto Fannie Mae (ultimately taxpayers) or onto buyers of mortgage backed securities. Now that it has become clear that a trillion dollars in mortgage loans will not be repaid, Fannie Mae is under pressure not to buy risky loans and investors do not want mortgage backed securities. This means that the money available for mortgages is falling, and house prices will keep falling, probably for 5 years or more. This is not just a subprime problem. All mortgages will be harder to get.
A return to traditional lending standards means a return to traditional prices, which are far below current prices.
Interest rates increases. When rates go from 5% to 7%, that's a 40% increase in the amount of interest a buyer has to pay. House prices must drop proportionately to compensate. The housing bust still has a very long way to go.
What a lying, dissembling, misleading, sales-technique spouting piece of **** from the NAR President-Elect.
Who CARES if everyone he gave a keynote to was positive?!! They are all REALTORS whose best interests is in selling homes.
This guy also is hung up on the trappings of success, not the foundations.
Keynote speaker.
President-Elect.
All image. No substance.
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