Jim Cramer's Best Blogs

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.

Click here for information on RealMoney, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.

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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) and Freddie (FRE Quote) 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) and Wells Fargo (WFC Quote). 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!