Comments on: Cramer's 2007 Solution: Here's How It's Working Out http://housingdoom.com/2009/09/03/cramers-2007-solution-heres-how-its-working-out/ Sat, 11 Feb 2012 07:12:54 +0000 hourly 1 http://wordpress.org/?v= By: Gainesville Real Estate http://housingdoom.com/2009/09/03/cramers-2007-solution-heres-how-its-working-out/#comment-17330 Gainesville Real Estate Fri, 04 Sep 2009 03:39:25 +0000 http://housingdoom.com/?p=4147#comment-17330 Cramer is always right because he is contantly on the buy side and only very recently came up with his "sell block" segment. In theory, nearly every stock will be worth more in the future so he's never wrong. He just waits until the price goes up and then says "See if only you bought it at $5, now you have a big profit." I think his street.com charitable trust portfolio actually has performed much worse than if you just would have held everything. Cramer is always right because he is contantly on the buy side and only very recently came up with his “sell block” segment. In theory, nearly every stock will be worth more in the future so he’s never wrong. He just waits until the price goes up and then says “See if only you bought it at $5, now you have a big profit.”

I think his street.com charitable trust portfolio actually has performed much worse than if you just would have held everything.

]]> By: Tobby http://housingdoom.com/2009/09/03/cramers-2007-solution-heres-how-its-working-out/#comment-17329 Tobby Thu, 03 Sep 2009 19:49:13 +0000 http://housingdoom.com/?p=4147#comment-17329 At the time of this rant Cramer assumed that the debt instruments were fine as long as rates stayed low. The market recognized the toxicity of these securities and didn't buy them at any price. The hedge funds blew up or closed. It wasn't the just the low interest rates that inflated the housing market, we have had effective low rates many times in history with no bubbles. The root cause was a failure to regulate rating agencies. No AAA rating, no CDOs, no CDOs, no NINJA loans. No NINJA loans equals fewer buyers. It was the extension of housing loans to dead beats and/or anyone with a pulse. Traditional underwriting would have kept this in check had Wall Street not offerd to buy anything the lenders could sell. At the time of this rant Cramer assumed that the debt instruments were fine as long as rates stayed low. The market recognized the toxicity of these securities and didn’t buy them at any price. The hedge funds blew up or closed.

It wasn’t the just the low interest rates that inflated the housing market, we have had effective low rates many times in history with no bubbles. The root cause was a failure to regulate rating agencies. No AAA rating, no CDOs, no CDOs, no NINJA loans. No NINJA loans equals fewer buyers. It was the extension of housing loans to dead beats and/or anyone with a pulse. Traditional underwriting would have kept this in check had Wall Street not offerd to buy anything the lenders could sell.

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