Jim Cramer: Hey, you know who’s really to blame for the mortgage mess?
posted at 3:45 pm on October 7, 2008 by Allahpundit
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Hard truths delivered from an unlikely soapbox. Enjoy it while I run to the ATM. You’ll see why.
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I ain’t got not soundser… wuts booyah say’n?
ninjapirate on October 7, 2008 at 3:54 PM
I’m not going to sit through 6 minutes of that guy. Can somebody tell me who he blames?
Mark1971 on October 7, 2008 at 3:55 PM
Colbert doesn’t know how to spin it. The audience was just silent when Cramer said we can’t blame this on Bush.
jimmy the notable on October 7, 2008 at 3:56 PM
That was supposed to be funny? Why am I standing on a ledge?
Cicero43 on October 7, 2008 at 3:56 PM
I like how Colbert changed the “blame” subject right after he got the “wrong” answer.
jgapinoy on October 7, 2008 at 3:56 PM
…That would be Jim Cramer….
He makes me mad.
And madness is what makes the markets irrational.
Of course, I can blame Ace (a little bit) too because he makes (a little) me mad too.
Mcguyver on October 7, 2008 at 3:56 PM
Anyone dumb enough to run with his stock tips knows who to blame for their poor financial situation - Jim Cramer.
NoDonkey on October 7, 2008 at 3:56 PM
Dems. He said the Bush admin is not responsible.
He said all this before on MSNBC but the panel didn’t want to listen to him.
progressoverpeace on October 7, 2008 at 3:57 PM
He blamed Congress & F & F. Colbert tried to blame Bush too, but Cramer would have none of it.
jgapinoy on October 7, 2008 at 3:57 PM
I can’t believe my ears and eyes! Cramer, from MSNBC, stating that you can’t blame the Bush administration (though he did say he wished you could) and that it’s the Democrats fault. It was an entertaining interview from a show that I normally hate.
Torch on October 7, 2008 at 3:58 PM
It’s pretty scary when comedy shows report more real news than the MSM. SNL and Colbert,we report you decide.
Tazz 55 on October 7, 2008 at 3:58 PM
I had a beer with someone this past weekend that tried arguing with me that Colbert was a right wing nut. Thankfully I was on my third and could just sit there and smile.
Hening on October 7, 2008 at 3:58 PM
I thought that was pretty entertaining. It’s about the calmest interview I’ve ever seen him give, considering. And, he didn’t blame Bush, which is somewhat refreshing.
CP on October 7, 2008 at 3:59 PM
What? It’s not Sarah’s fault? Somethings screwy. Are you ok Allah?
Fuquay Steve on October 7, 2008 at 4:00 PM
Well, when they put it that way, why am I worried?
AubieJon on October 7, 2008 at 4:00 PM
It’s going to start sinking in with the American people….
TheBigOldDog on October 7, 2008 at 4:00 PM
This is not funny.
Funny though how the Fed and Treasury want a ton of money but then want to dither on lowering the Fed rate while the market continues to tank.
So now are we going to bailout B of A since they bought two lemons?
Starlink on October 7, 2008 at 4:00 PM
ATM not giving money.
If you’re a college student like me isn’t ATM synonymous with DAD or MOM.
Hmmm…Better check on them.
theguardianii on October 7, 2008 at 4:01 PM
Get use to it folks. Our leaders do know nothing. If they were truthful to us they would have you quaking on the floor in a fetal position. Things are bad out there. Liberlism is not the answer. the leaders took to long on the bailout. they allowed people to see the house of cards. Damn liberlism for getting us into this position. the poor do not deserve credit. They are poor for a reason. Being poor is a state of mind not a birth defect.
unseen on October 7, 2008 at 4:01 PM
Their is a gold commercial on Hannity’s radio show right now.
Elizabetty on October 7, 2008 at 4:01 PM
I am absolutely sick of Colberrrtt.
Cardiganfox on October 7, 2008 at 4:02 PM
The Dow is down 500 now. Sure am glad we got that bailout to give confidence to investors.
carbon_footprint on October 7, 2008 at 4:03 PM
Well, that was six minutes of my life I’ll never get back. Just helped to confirm why I never watch the Daily Show or Colbert.
The only reason I ever watch Cramer is in anticipation of the day when his $%R#!# head explodes on national TV.
johnsteele on October 7, 2008 at 4:03 PM
I’ve never quite got how any money guy can be a Democrat, but good for Cramer to say it’s Democrat’s fault–mostly. But he is right Republicans did think home ownership was a good plan. I still think pride of ownership is a good plan. Everyone has to pay rent. A mortgage payment in the same amount should be doable for most people.
The only real big problem was loans with low payments that go up over time. That is just plain stupid.
With a reasonable payment if someone was late once in a while they still wouldn’t be in the position they are in now. With a $50K income and living in a $400K house with a $600K mortgage because it was interest only for the first year.
They hardly even build in the $100K range in Phoenix anymore and that is the range $50K people should be living in.
How in the world did anyone think ARMs were going to be the answer for anyone?
petunia on October 7, 2008 at 4:05 PM
carbon_footprint on October 7, 2008 at 4:03 PM
It’s about liquidity and banks not the damn DOW.
Cardiganfox on October 7, 2008 at 4:06 PM
Mad Money=CNBC=NBC=GE=Democratic Party= George Soros (Owner of everything)
Mad Money cancellation 5…4…3…2…1…
It wouldn’t be a total lost, if actually followed his advice you would have lost it ALL.
Lance Murdock on October 7, 2008 at 4:07 PM
It’s not Dubya’s fault, it’s the Demos?…I’m in shock.
I love Jim…even when he’s yelling. I’d put him in my cabinet or maybe my pantry if I was McCain. And I’ll take Colbert over Stewart, in a pinch.
Christine on October 7, 2008 at 4:08 PM
Being poor is a state of mind not a birth defect.
unseen on October 7, 2008 at 4:01 PM
Unseen, you are indeed correct, but it will alway be here and that is truly sad.
foxone on October 7, 2008 at 4:08 PM
Phil Gramm: http://www.youtube.com/watch?v=6rpoYvsc3ho
AJB on October 7, 2008 at 4:08 PM
I’m switching to Federal tourniquet stocks. It’s a growth industry.
Fletch54 on October 7, 2008 at 4:09 PM
Bwaney Fwank just subpoenaed Cramer. He wants to talk to him about pumpkins.
Western_Civ on October 7, 2008 at 4:09 PM
Cramer would be more effective if he learned English.
Mr. Joe on October 7, 2008 at 4:10 PM
I understand, but this bailout was supposed to give confidence to the damn DOW.
carbon_footprint on October 7, 2008 at 4:11 PM
He doesn’t blame BOOOOSHHH
PappaMac on October 7, 2008 at 4:12 PM
I saw this last night and thought Cramer’s take was pretty powerful. It’s strong because he admits he wishes he could blame Bush. I know Cramer is a blusterer, but this had an honest, thoughtful tone.
Let me also say this about people who bought houses they couldn’t afford: our PC culture has made it dangerous to live in affordable neighborhoods. There are plenty of houses I can afford in Washington, DC, but I don’t wanna live in a neighborhood where I’d run a good risk of being shot. We need to make affordable neighborhoods safe again.
boko fittleworth on October 7, 2008 at 4:14 PM
Still, the logjam is starting to break on this story… Just like with Jeremiah Wright, there comes a point when the story gets big enough that the MSM cannot keep containment.
So now that MSM containment has been breached on this story, expect the narrative to change. I believe the MSM will try to deflect attention by making this a race issue. At this year’s NCBJ (a prominent annual bankruptcy lawyer symposium/gathering), they had speakers saying that over 50% of all subprime loans went to African Americans. Moreover, Fannie and Freddie were both aggressively promoted and supported by the CBC. Watch for the Democrats to argue that McCain’s criticism of Freddie and Fannie and the Democrats is, in fact, a clandestine appeal to racism. The MSM will pick it up and run with it.
Frankly, I hope they do. That’ll give conservative pundits an opportunity to decry “financial affirmative action,” since opposition to affirmative action plays HUGE in blue collar and middle class America.
Outlander on October 7, 2008 at 4:15 PM
The bloodletting continues on Wall Street. The DOW surrendered early gains and plunged over 500 points.
Mike Honcho on October 7, 2008 at 4:15 PM
That actually wasn’t half-bad! I’m surprised, I usually can’t bear to watch Colbert.
TMA on October 7, 2008 at 4:15 PM
McCain needs to use this tonight. And when Democrats reply with you just want Wall Street to run wild. Republicans need to come back with
Theworldisnotenough on October 7, 2008 at 4:16 PM
At one point, Colbert wonders, should he hide his money in a “hollowed-out pumpkin”. Am I reading too much into this or is that a sly reference to Alger Hiss and the Pumpkin Papers?
LastRick on October 7, 2008 at 4:17 PM
Actually that was a pretty good clip. Glad Cramer is telling the truth, although I am sure he will wake the sleeper at MSNBC and get a visit from Olberman and Matthews to rein him in.
Mr. Joe on October 7, 2008 at 4:17 PM
“One person should own every house”
Typical lame libtard attempt at humor: these people are so thoroughly ignorant that they can NEVER actually be funny.
Everything is political to them–but I already knew that
another waste-of-time thread………..
Janos Hunyadi on October 7, 2008 at 4:18 PM
Was that a pumpkin futures reference?
YYZ on October 7, 2008 at 4:18 PM
You can safely blame everybody who was trying to get something for nothing–borrowers, mortgage servicing companies, Fannie, Freddie, investment banks, and Congress. The way Congress got something for nothing was more indirect. Instead of having to spend more money on urban redevelopment, and housing subsidies for low-income constituents, the normal way, Congress did it through the GSE guarantees. Low-income constituents got homes, and as long as the real estate values were going up and up, they created lots of appreciative voters–both bankers and borrowers with higher net worth.
RBMN on October 7, 2008 at 4:19 PM
You should watch it. He flat out says it isn’t Bush’s fault.
Though I don’t get his point about ATMs. If our money is safe in banks, then why won’t we be able to take it out of ATMs? Is that just a joke or what?
Esthier on October 7, 2008 at 4:20 PM
He admitted at one point in his popular-no-more radio show, to helping stock prices move in his favor.
It was widely considered as a slip of the tongue.
In other words, par for course as far as liberals’ head-in-ass diseases go.
So in others word, just benefiting from market swings that are caused by their own doing as all effing liberals (and those who voted for Obama in the primaries) do.
In others words, business as usual.
Mcguyver on October 7, 2008 at 4:22 PM
Come on. Cramer is the most obnoxious POS on the television, and that includes Keithy Baby. Plus I already read that he’s telling people to sell all their stocks — which would crash the whole economy.
rightwingprof on October 7, 2008 at 4:23 PM
Colbert’s real personality couldn’t blame a Democrat for something as long as a single Republican was alive.
Speedwagon82 on October 7, 2008 at 4:27 PM
I think his point is is that everyone will rush out to get their money from their bank and the ATMs will run out of money.
Pent. on October 7, 2008 at 4:28 PM
3:11 in is where it’s useful.
drjohn on October 7, 2008 at 4:29 PM
OT: Is Hot Air really, really slow for anyone else today?
MadisonConservative on October 7, 2008 at 4:31 PM
Well when it stops coming out of the ATM you have to go ask Uncle Sam to reimburse you.
ronsfi on October 7, 2008 at 4:31 PM
The bloodletting continues on Wall Street. The DOW surrendered early gains and plunged over 500 points.
Mike Honcho on October 7, 2008 at 4:15 PM
the selling on wall street is due to a large measure because Obama is up in the polls. If you are an investor and a man that says he is going to raise your capital gains taxes, your div taxes, your corp taxes, your income taxes is leading in the polls and the market looks like a bad plavce to be regardless would you not pull your money out and start hiding it?
Yes you would. We are seeing the Obama selloff. Wall Street always looks about 6 months out. They see a recession, they see a socialist/communist set to take power. Of course they are going to hide their money. Thatr is what the wealthy do. The wealthy think they can controll Obama. They are wrong.
unseen on October 7, 2008 at 4:32 PM
Yes. I keep getting Page Load Errors. I was wondering if it was just me.
Makes me wish I was back waiting tables again. At least then I always had plenty of cash.
I guess that makes sense. Thanks.
Esthier on October 7, 2008 at 4:34 PM
OT: Is Hot Air really, really slow for anyone else today?
MadisonConservative on October 7, 2008 at 4:31 PM
Yes - I thought it was my own computer - I’ve even been kicked off (went to AOL Search) and came up “site not found”.
That was really strange.
tru2tx on October 7, 2008 at 4:35 PM
Government had 2 hands in this whole mess:
a) dems who decided that it was a good idea to lend hundreds of thousands of dollars to anyone, even if they were broke.
b) repubs who labeled capital requirements and believable accounting standards as “burdensome regulation” and gave the green light for investment firms to go leverage their positions 300 times over.
Business has 1 hand in this whole mess…no one did their effing homework.
No one at moody’s or standard and poor’s decided to really see how these physicists and math geniuses were designing these derivatives and securities with insane calculus that would make your head spin
No one at the institutions that invested in them thought twice about taking out huge insurance policies (CDO’s) on billions from small firms that had capital positions in the hundreds of millions.
Basically, anyone with a hand in this is guilty. Guilty as sin. Placing all the blame on fanny and freddie is detrimental to anyone looking for a solution.
The idea that certain regulations were “overly burdensome” even though they were absolutely necessary to keep people from getting drunk on debt was absurd, and we should learn from that mistake.
ernesto on October 7, 2008 at 4:36 PM
Excruciatingly so.
carbon_footprint on October 7, 2008 at 4:37 PM
That video is garbage designed to fool people that don’t know much about the situation.
toliver on October 7, 2008 at 4:39 PM
Yes, slow and sometimes times out. I blame Palin.
Bishop on October 7, 2008 at 4:39 PM
I think it was GREAT! Colbert has a younger, more liberal audience. There must have been explosions going off in their heads hearing that this is the Democrats fault. Colbert looked STUNNED! IF this message is hammered home, McCain should win. If not, America deserves to go down the drain.
Star20 on October 7, 2008 at 4:39 PM
If you’re talking about a FIXED-RATE mortgage, a mortgage payment equal to rent is doable in most situations, IF property taxes aren’t out of sight. Since mortgage interest and property taxes are both dedectible from income taxes, a person can actually come out ahead buying a home relative to renting, if property taxes are less than 1/3 of the mortgage payment (at a 25% tax bracket).
Loans with low payments that go up over time ARE just plain stupid, but then so are many borrowers. Start them off with a 3% teaser rate, and lots of starry-eyed young couples jump at a $400K “dream house” for $1,000 a month. Then when the interest rate jumps to 6% or 8%, suddenly they can’t afford it. Wonder why? Why didn’t they ask up front how high the interest and payments could go?
I bought a condo in 1982 with an ARM with a “teaser rate” of…11% (thank you, President Carter!), and was stuck with huge payments for years, after property values went down. When interest rates came down during the ’90’s, the payments were lower, and I gradually got the principal down to where I could sell and break even.
So when I looked for a house in 1997, I insisted on fixed-rate only. Started out at 8.5%, refinanced to 5.6% over 20 years in 2001. Since then, I received hundreds of ARM offers in the mail at ridiculously low teaser rates, all of which went straight to the dumpster. Been there, done that, no thank you! But how many younger people who don’t remember the 1970’s fell for it?
Food for thought: do Hot Air readers think new regulations should be instituted on ARM’s? Such as: calculate monthly payment at highest interest rate, such payment can’t be more than 30% of income? This is a criterion frequently used to qualify for fixed-rate mortgages–if this were applied to ARMs, very few people would default on them, and very few people would want them.
Steve Z on October 7, 2008 at 4:41 PM
It’s really slow for me, too. Also got ’site not found’.
Mulligan on October 7, 2008 at 4:44 PM
Unless the ATM machine is one that actualy belongs to your bank…. like a STAR ATM or PLUS… then what they do is give you money based on your bank paying them back (for a fee)…
They essentialy borrow money, give it out at their ATMs and then get it from your banks, essentialy a short term loan. If credit dries up too badly, they won’t be able to get the short term loans themselves to provide this service.
Romeo13 on October 7, 2008 at 4:44 PM
Heh…looks like some libtard ratted me out to the YouTube folks. The bailout video I posted got flagged and ditched. Gee…will the Sandlers come after ME now?
ManlyRash on October 7, 2008 at 4:45 PM
Yes. Terribly slow.
txsurveyor on October 7, 2008 at 4:48 PM
Yes it is. And it is using copyrighted music:
Hey ManlyRash - report this A hole so youtube yanks his POS video.
wise_man on October 7, 2008 at 4:51 PM
@Madison: Yes, painfully. So much so that my work computer is giving me error pages - and with our firewall, the “taking too long to load/404 error” pages look exactly like the “site blocked” pages except for a few lines of small text near the bottom. Kind of nerve-wracking to see every other time I try to post or so that screen and think HotAir’s been blocked.
Careful, he’ll try to buy your wife. :O
*eats*
Grue in the Attic on October 7, 2008 at 4:54 PM
Did they say why (copyright, whatever)?
*eats*
Grue in the Attic on October 7, 2008 at 4:57 PM
Will do. Let’s see if they yank it.
ManlyRash on October 7, 2008 at 4:57 PM
Steve Z on October 7, 2008 at 4:41 PM
You missing the point. ARM’s were needed because the price of the house went above the increase in wages. Therefore for people to afford a house relative to their wage they had to invent ARM’s. that was the call that housing had entered a bubble. The [price of a house was no longer trading within fundementals (i.e what people could afford to pay) At that point Housing was too expensive and needed to correct. Instead of the gov seeing this and letting the housing correct by banning ARM’s the dems in congress wanted more ARM’s because the price of housing was too high. It was too high because of increased demand due to the congress push for more ARM’s. the dems attacked the wrong threat.
Price is a function of supply and demand. because the dems artifically increased demand, supply fell and the price went up. Instead of attacking this demand they figured out a way to attack the price. Because the price was artifically kept high homebuilders kept building increasing supply because they thought the increase in price was due to increase in demand. It was not. therefore the entire supply/demand connection got out of wach and caused a massive increase in supply at the same time that demand was falling. yet due to ARM masking the price this was not seen.
thus we now have a massive supply of housing, no demand because of price and the home vaules must fall long and hard until the demand comes back.
unseen on October 7, 2008 at 4:57 PM
unseen,
I don’t disagree. Keep in mind that Obama, in addition to raising all sorts of taxes, is also talking about granting the courts sweeping powers to reset the principal on mortgages.
Mike Honcho on October 7, 2008 at 4:57 PM
Now that seems to explain everything. I hadn’t thought of it that way.
Esthier on October 7, 2008 at 5:00 PM
Heh heh heh…here is the response I got (emphasis mine):
Not only does the artist himself or his representatives have to file the complaint, but there is a chance they will drop the hammer on me for filing a false complaint.
Paging Eric Arthur Blair….will Eric Arthur Blair please call the front office…
ManlyRash on October 7, 2008 at 5:03 PM
A BIG shout out to the left for our financial woes!
Let’s hear it for the left!
Hip, hip, dumba**!
Hip, hip, dumba**!
Hip, hip, dumba**!!
madmonkphotog on October 7, 2008 at 5:03 PM
Mike Honcho on October 7, 2008 at 4:57 PM
I prediucted last year DOW 7,000 if Obama is elected. I can see DOW 1500 (yes 1500) after 8 years of Obama. Obama is a communist that believes in wealth redistrubution. what reason would people invest in companies that are not going to inccrease their divs, have their profits stolen by the gov and taxes for the privilage.
what people forget is that the #1 reason for the stock market is captial formation. It is the way for companies to raise capital to build new plants, hire new workers, expand their business, the IPO market is about zero right now. there is no new capital formation going on, thus no new companies forming growing etc.
unseen on October 7, 2008 at 5:04 PM
That’s *%^@!ing BS. Grrrrrrrrr.
*eats*
Grue in the Attic on October 7, 2008 at 5:07 PM
Yet another footnote-to-accepted-wisdom moment that will change nothing. When conservatives are willing to prop up the grand narrative in its infancy, how the hell do you expect Booyah boy to have an effect on it when it’s fully grown and the damage is already done?
spmat on October 7, 2008 at 5:19 PM
At least he wasn’t as bug a bummer as he had been on Today yesterday morning.
chiefeditor on October 7, 2008 at 5:22 PM
spmat on October 7, 2008 at 5:19 PM
the 905 who think congress are a bunch of idiots tend to disagree with you. Because of Congress ’s low approval an concentrated attack to blame congress for this will haver littel defenders. since it is proven fact the dems in Congress blocked this regulation by filibuster for years. they will get blamed. All the reps need to do is state the facts.
socialism and giving money to poor people does not work.
unseen on October 7, 2008 at 5:22 PM
Yeah. I got the same thing. That’s complete BS.
It didn’t let me know until after I clicked on the button to notify them of the copyright complaint.
wise_man on October 7, 2008 at 5:22 PM
chiefeditor on October 7, 2008 at 5:22 PM
Cramer gave very sound advise. do you really think the stock market is going to go up in the next 5 years with a communist in the White House?
unseen on October 7, 2008 at 5:23 PM
chiefeditor on October 7, 2008 at 5:22 PM
Cramer gave very sound advise. do you really think the stock market is going to go up in the next 5 years with a communist in the White House?
unseen on October 7, 2008 at 5:23 PM
and a communist controlled Congress?
unseen on October 7, 2008 at 5:24 PM
CRAMER’S TICKET’S PUNCHED,
HE’S NEXT UNDER THE BUS!!!!
pherrman on October 7, 2008 at 5:28 PM
Here is a hot stock tip:
Stock up on 9mm and 45acp ammo.
Since the invention of the gun, ammunition has never been worth zero.
30-06, 308, .223 are also sound investments.
TheSitRep on October 7, 2008 at 5:32 PM
Video pulled in 3 … 2 …
Ronnie on October 7, 2008 at 5:37 PM
Ramen Noodle stock just rose 300pnts
- The Cat
MirCat on October 7, 2008 at 5:40 PM
How can I send this to this Idiots on ” The View”
Texyank on October 7, 2008 at 5:40 PM
How can I send this to
thisthe Idiots on ” The View”I hate it when I do that. . .
Texyank on October 7, 2008 at 5:41 PM
…. There was a huge box of that stuff on the kitchen counter when I left for work this morning.
My roommate is currently unemployed, and plans to move back to his family’s hometown at the end of our lease (end of Nov).
Hrrrrrrrm…..
*eats*
Grue in the Attic on October 7, 2008 at 5:46 PM
Cramer, the week before the bailout, was screaming at the tv that Congress needed to pass it. He said without the bailout the market would drop to 8300 and change.
So 700 bil to keep the fall to only 9300. Cool.
On the upside, I’ve been saving like crazy to pay down my mortgage. If I time this market just right…
BadgerHawk on October 7, 2008 at 5:56 PM
Wow. Sadly, that video is slick enough to fool people who don’t know any better.
BadgerHawk on October 7, 2008 at 6:04 PM
I’m still holding some wallpaper named Occulogix he told me to buy.
flyoverland on October 7, 2008 at 6:23 PM
Jim Cramer is a combination massive heart attack AND stroke waiting to happen.
pilamaye on October 7, 2008 at 7:15 PM
I’ll give Cramer credit — he was honest and factual about the origins of the crisis. There were problems with oversight too, but the changes made and pushed during the Clinton Admin did much to start this entire mess…
eanax on October 7, 2008 at 11:09 PM
Exactly. In the tank for Obama.
PattyJ on October 7, 2008 at 11:35 PM
Here’s Cramer’s original meltdown: Yup, he’s a prophet.
PattyJ on October 8, 2008 at 12:13 AM