Yup, it's really hitting the fan now.
Here's the video
We're just getting started HP'ers. The real fight will be on soon - HP vs. the government and hedge fund managers like Cramer.
Will the taxpayers be called on to bail out the banks for their corruption and terrible decisions? Will trillions (yes, trillions, not $250 billion as Cramer says) of your kids' money be used to avoid the downfall of Merrill, Citi, JP Morgan, Fannie and Countrywide (moral hazard anyone? dollar destruction anyone?)
Or will Mr. Market do its thing, wiping out the idiot insurers and the banks, and then everyone grabs a shovel and digs out of the rubble?
You won't believe what you're about to see HP'ers. If you can, I recommend taking the rest of 2008 off, get your assets into the safest non-dollar investments you can find, stock up on popcorn, and wait out this financial typhoon.
Feds Need to Buy Mortgage Insurers
U.S. banks are taking a beating in the market because of the billions of dollars in subprime mortgages they have on their books. And with the insurers who backed the loans in danger of going belly up, there doesn’t seem to be a bottom for these stocks. If that ever happened, Cramer said, the entire system would collapse dominoes style.
It’s his ultimate doomsday scenario, and he fully believes it could happen if the government doesn’t act quickly.