Jim Cramer's Best Blogs

What seems to be missing in this morass is a plan -- a plan that is active, not passive and reactive -- from someone of responsibility in this government. They are so steeped in laissez-faire that there's an actual debate about doing NOTHING to help figure out this house price depreciation -- they are actually debating the fate of the U.S. economy and whether anything should really be done to fix the banking system. What an incredibly preposterous position! What are we doing? Teaching everyone a lesson at the taxpayers' expense? Why doesn't the government just close the ne'er-do-wells and take them over and then redistribute the equity after sanity replaces recklessness? Why can't they be SMART?

I am aghast how predictable all of this is. The SEC suspends the short-selling rule just when the earnings collapse of the banks allows short-sellers to help the rout and make capital-raising impossible. That then drains the FDIC and causes a total lack of confidence in anything that the agencies or Treasury says, let alone the institutions like Citigroup (C Quote) and Washington Mutual (WM Quote) that so desperately need to raise capital -- of course, they would deny that in a heartbeat.

How can all of this obvious collapse-to-be not be stopped?

Simple: Because they don't want it stopped. On the one hand, they leak to Barron's that they are going to take over FNM and FRE; on the other hand, they strenuously deny it.

One or the other.

Can't have both.