Jim Cramer
Jim Cramer fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:
- the Fannie/Freddie bailout,
- the shorts' handbook, and
- lack of foresight.
This Bailout Is a Big Piece of the Puzzle Originally published on Monday, Sept. 8, at 9:35 a.m. EDT The biggest canard of all: "This is not going to be a cure-all, nor will it solve the 'real problems' of the U.S. economy." Why is it a canard? Because no one -- I repeat, no one -- is saying it is. Not even the biggest bulls. This bailout of Fannie (FNM Quote - Cramer on FNM - Stock Picks) and Freddie (FRE Quote - Cramer on FRE - Stock Picks) is a piece of the puzzle that is meant to stop house price depreciation. It is one of the major pieces. Mortgage rates are being called down big this morning, big, with some mortgage brokers thinking we will lop a full percentage point off of rates. In case you think they are biased, these people had been forecasting a big gain in rates. What's driving me crazy here is the falseness of the critics. They are all assuming that things won't be happy. It is about being happier. Let's take Bank of America (BAC Quote - Cramer on BAC - Stock Picks) and Wells Fargo (WFC Quote - Cramer on WFC - Stock Picks). These changes are huge for them. If you owned them, you are going to make a lot of money. Why? Because the competition just got diminished, and the company that was making them pay more for money is gone. No, that doesn't cure their bad loans. It does make it better!
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