Loading ...Cramer goes insane - screaming for Bernanke to cut the rate
Posted on August 3rd, 2007 in Offbeat News
This is must-watch Cramer - a great way to end this insane week on the market! Cramer flips out about two minutes in - screaming, yelling, begging for Ben to cut rates, talking about people on the Street losing their jobs, armageddon, etc.
August 3rd, 2007 6:17 pm
All I have to say is, “Wow!”. I mean, how bad is it behind closed doors. Cramer was in full meltdown panic. Astonishing!
August 3rd, 2007 8:20 pm
I completely agree, cut rates, inflation can be managed easier than a recession. When property values decreases even more, middle America feels poor and wont spend money; the strength of the dollar wont be a factor.
August 3rd, 2007 9:53 pm
So…Wallstreet, Lenders, Realtors, and Mortgage Brokers create this mess, and then BEG for the Fed Chairman to cut rates to help save what their greed got them in to?? Man oh Man this upcoming week is going to be good…can you imagine Cramer if the fed keeps rates as is. Also, Did not Paulson state this is contained?? things that make you go hmmmmmm…………………
August 4th, 2007 9:10 am
Rene,
Cutting rates is what is creating these problems in the first place - doing so again might provide some temporary relief but would only make the inevitable correction (you can’t inflate forever) that much worse.
As for the strength of the dollar, if the supply of dollars is increasing, the buying power will decrease - even more so if the foreign holders of dollars have no American goods to purchase.
A fool…
I pretty much agree with what you’re saying - it’s a joke - hilarious to watch. And the irony is thick.
August 4th, 2007 9:56 am
As Justin said, cutting rate is not going to fix the problem. This mess started when Greenspan panicked during LTCM crash and cut rates. We have gotta pay the piper his dues.
August 4th, 2007 10:16 am
There are ups and downs in the business cycle, but the borrowing of the past six years by our government has postponed a downturn which would have occurred in the natural order of the economic universe.
This postponement suggests that when the inevitable downturn occurs it will be far deeper and last far longer than it might otherwise have been.
August 4th, 2007 1:41 pm
Agree with the previous post. This mess was created by cheap money lowering the funds rates. If they lower it again, it will provide a temporary relief, but the bubble will be much worst than now (and it is bad right now).
Bernanke needs to sit tight and let this mess fix itself. There will be lots of pain, but it needs to happen.
August 4th, 2007 4:56 pm
Agree with what others have said in that delaying a minor recession 6 years ago has created the chance of a whopping great one now. Rather akin to an earthquake richter scale 9 instead of a smaller one at richter scale 5, by delaying its arrival it builds up more.
August 5th, 2007 4:05 am
Lower rates will bring the USD to its knees (everyone should buy gold and silver bullion as a hedge) but it is inevitable and the situation is made worse by turning on the monetary inflation in order to finance Washingtons attempts at world domination, a funny goal for a country whose currency has an intrinsic value of ZERO.
What else could now send the dollar into a bolivian? Well let’s cross that BRIDGE when we come to it provided of course that the bridge is still standing…..one down and a thousand more to drop whose structural integrity is doubtful…oh that’s gonna cost lots of money..better bring the troops home and rebuild our country instead.
August 6th, 2007 11:07 pm
Mr. Cramer’s meltdown demonstrates how convoluted Wall Street has become. The Federal Reserve’s job is NOT to eliminate risk in markets. The question that remains is if lowering interest rates to multi year lows created this mess, wouldn’t we just be compounding the problem by lowering them again/more?
Nobody complains when the market expands, so why do guys like Cramer complain when it contracts? Markets– in “free market” ecnonomies are self correcting. Pleading for rate cuts interferes with free market dynamics and replaces it with greedy, self serving interests.
This correction is set on the foundation of ‘repricing risk’- something that is long overdue and was aided and abetted by (supposedly) independent rating agencies. Giving Wall Street a blank check by bailing them out every time they get themself in deep, only seems to fuel this corruption.
And I’m supposed to feel sorry for greedy hedge fund managers who have lined their own pockets with investor cash, while failing to accurately assess risk in all of this?
Cramer embodies everything that has gone wrong with Wall Street in the last 10 years. This guy is an imbecile.
K
August 6th, 2007 11:10 pm
Abolish the Federal Reserve…
Eliminate the IRS…
Smaller government with less intervention…
Restore sound money…
Ron Paul 2008
August 8th, 2007 6:15 pm
I want to correct someone on this site, A fool and his money said that it is Wall Street, Lenders, Mortgage Brokers, and Realtors that created this. Some is true. What is not true is that this was caused by Realtors and Mortgage Brokers. It is true that Wall Street and Lenders came out with programs that are called liar loans which created this some of this mess.
Now lets talk about the economy, gas prices, health care, food prices, trade defecits, unemployment, ETC
I am in fact a mortgage broker, it is not our fault that cunsumers overspend, spouces die, couples get a divorce, people loosing their jobs, people get sick or hurt and they are unable to work. The news media and the government want to blame us mortgage professionals for all the foreclosures in the country, they also state it’s due to adjustable rate mortgages. They state that people can not afford their house payment after the adjustment period, well has anyone looked at the real truth behind this? Do you realize that most of the foreclosure are initiated before the first adjustment?
Now as far as the Feds, I believe they need to step in and lower the rates, people are living on their credit cards today, the use of credit cards and balances are through the roof. This is not a mortgage brokers fault, this is caused by people not working, our unemployment ratios are high as well.
Thanks for listening.
August 13th, 2007 5:26 pm
[…] of Americans are in deep trouble. CNBC’s Jim Cramer “flipped out” last week in a torrent of truth about the current economic […]
August 13th, 2007 5:35 pm
[…] of Americans are in deep trouble. CNBC’s Jim Cramer “flipped out” last week in a torrent of truth about the current economic […]
August 14th, 2007 8:50 am
Hysterical!!
One of the very rare times where Cramer was true to himself???
August 14th, 2007 12:11 pm
Jim,
It is not you mortgage brokers that caused this. It is the banks that EMPOWERED and ENABLED you to sell such crap loans that caused this. If a bank is willing to loan money to almost anyone, then I’d expect you to broker a loan to almost anyone. However, you should be quite upset too, you know why? Because now the market is at a standstill. And there is no end in sight.
Sure, people overspend, but banks have an obligation to the economy to use good lending practices. You’re just the guy who find the available loans.
HOWEVER Jim, I’ve heard the insane radio ads that people in your profession make (convincing uncreditworthy people to buy homes). Many of your contemporaries are at least partners in this problem.
August 14th, 2007 12:40 pm
And Cramer: Lowering the rate will only encourage more predatory lending. Don’t beg Bernanke. Beg congress to create some legislation that prevents lenders from writing so much sub-prime crap in the mortgage market. Rehabilitate the problem, don’t just put a band-aid on it.
August 14th, 2007 8:31 pm
[…] millions of Americans are in deep trouble. CNBC’s Jim Cramer “flipped out” last week in a torrent of truth about the current economic […]
August 14th, 2007 9:35 pm
Our money system is a ponzi scheme, I think it is called fiat and only is as good as the faith behind it. That is why countries really always want more immigrants because they want more poor people on the bottom to prop up the fiat money system.
Kramer I never watch, but if he had an insane rant then he must have money he has invested that he is very worried about. I feel sorry & have compassion for anyone who loses money or home.
I do believe we have too many crooks working the money systems for it to not collapse. It appears banks are hiding other failed loans under the mortgage fiasco making it appear all of the loss is due to bad housing loans when, in fact, it is theft.
Of course, the American family unable to pay their home mortgage will be hated and blamed for everything as fingers are pointed. This continues the victim/abuser relationship the people have always endured from the cartel of international ruling Elites.
August 14th, 2007 9:38 pm
Sorry have to disagree with all of you,I’m old enough to have lived thru that era where they asked the last one leaving Seattle to turn out the lights,these are real people your talking about leaving in the lurch,people with kids,people who trusted their lenders when they were told they qualified for the home of their dreams,people who can’t afford health ins,a decent home,good schools for their children,I’ve seen how this thing ends and it ain’t pretty and the ones who suffer are not the banks,mortage people etc,its the America family again taking the hit.Maybe lowering the interest rates is not the answer but there must be a solution that takes into account the millions of familys who are going to be affected and shame on all of you for being so academic to not even consider the results of your cavalier solutions
August 15th, 2007 1:18 am
The “father of Reaganomics,” Paul Craig Roberts, has written a number of good articles recently on the mess we’re in. His most recent is an interesting tale of how China has the US by the balls, despite what Treasury Secretary Henry Paulson and others have been saying:
http://www.informationclearinghouse.info/article18154.htm
August 15th, 2007 3:30 am
The fed was designed to create these ever more drastic cycles, the deepening despair is a hallmark of its blossoming into full maturity. In 6 years Americans everywhere will be dancing in the streets celebrating the 100th year since being blessed by the introduction of this “federal” (private) “money”(fiat) printing cabal; well, maybe they’ll actually being killing eachother for food in the streets, but that’s sort of like dancing, huh?
August 18th, 2007 8:31 pm
Current situation - pay now, or pay later.
Solution - eliminate ARM’s to prevent mortage lenders from transferring interest rate risk to borrowers.
August 28th, 2007 4:26 pm
It is not you mortgage brokers that caused this. It is the banks that EMPOWERED and ENABLED you to sell such crap loans that caused this.
Sure, people overspend, but banks have an obligation to the economy to use good lending practices. You’re just the guy who find the available loans.
Mortgage Brokers do not construct loan products, approve loans or manipulate the programs lenders are pushing at the time by adjusting the rates accordingly, lenders do. Keep in mind that the lenders, ones with a retail side, sell the same loan products… but it’s easier to find a target that doesn’t have such deep pockets.
It’s not necessarily the programs either. It’s the turn in the housing markets driven by many factors including property taxes, homeowners insurance and lack of buyers that did, depending on the state. It’s not just Subprime either. If you purchase a house with 20% down, good credit and then subsequently lost 30% in value you will loose as much as someone in the Subprime market. It’s the American way to blame others….. No responsibility placed at the doors of the homeowner’s insurance companies, property taxing authorities, lenders or the borrower.
February 24th, 2008 3:53 pm
I love Kramer for telling it how it is, but he is such a flip-flopper its not even funny. He’ll change his mind about something every week