Hey, I thought this was a "free market" system. Not a system where government bails out greedy banks, lenders and people!

Here comes the Fed to rescue American business...

The dollar is the weakest in decades, significant credit problems are bombing major banks, oil is around $93 predicting a major gasoline price increase soon, home foreclosure numbers are bad and growing, housing is literally frozen and falling, grocery and energy prices are soaring with electricity and natural gas expected to go up 15-20% this winter, the huge illegal alien problem remains, medical costs are jumping, and manufacturing jobs continue to go overseas...and we have a $12 BILLION A MONTH war we can't seem to win.

It is interesting how business HATES government BUT runs to it quickly for money and bail outs whenever business screws up!

http://www.openenergycorp.com/news/video/NHF45493_01.wmv

That funny Cramer, because mortgage interest rates have gone UP since the last fed cut. This is about risk takers getting a bailout, not helping the little guy from staving off forclosure. Where was everyone's concern for the "little guy" when the borkers and banks were willing to give hundreds of thousands of dollars in ARMs to people with no income documentation?

Cramer can be fun. But, when was the last time he or any of the other yahoos worried about the dollar or inflation? Sadly, the party that went on for the last five years, is over and the clean-up must begin. Those of us who acted responsibly and saved and invested rather than borrowed and spent, deserve the bargains that will now come. You want to know why I didn't buy a condo? Because they were overpriced. God help us if the messege we're left with is; 'only suckers save and think about paying for what we buy.' John

I see Cramer like so many others has just not done his research on the Inland Empire--Many of those who live here do not work here-- they work in higher paying LA and Orange counties which substantially changes the affordability ratios. What will wipe out the Inland Empire is a widespread loss of jobs- not mortgage resets.

Jim, how much of the 500 billion has already taken place?

I am having a hard time understanding the significant losses from the sub prime collapse. If a person had a $100,000 house and got a 95% loan then defaulted, the lender should be able to sell the house quickly for $95,000. The costs to the bank would be foreclosure expenses--which whould be about $5000. Where are all the losses?

Thanks,
JOE

Seems like it's a catch 22 to me. If they don't lower the rates, foreclosures and companies invested in these mortgages will suffer. If they do lower rates the dollar will drop further and foreign investors will put out of US market. Just seems like this will be troublesome times no matter what decision they make.

The Fed is there to protect the dollar and fight inflation and not to protect the stupid bankers and mortgage lenders who should have known better.

7 millions defaults = 12% of all US homes! ???

You know Im so tired of hearing about all these poor people. Subprime or A rating if you can't afford it you can't period. They were trying to keep up with the next door neighbor i.e. who had the largest home and they got over extended. Noone put a gun to their head and everyone has 3 days right to change their mind(hire an attorney/cpa to review the contract ) if they have any doubt's about the loan. Gov. has to stop bailing out the idiot's Im tired of it and looking now for the good deals to start happening in San Diego.

Thank you the Jones's you are making me rich. Btw just put an offer on a condo sold for $265,000 in 2005 offered $125,000.

In the natural course of the economic cycle there is what is known as correction. Housing prices went through the roof and the regulators were asleep at the wheel by keeping interest rates super low too long and allowing people with no money and bad credit to buy homes that they cannot afford to begin with. Housing prices must fall or the dollar will keep losing value. Plain and simple.

I worked as a lawyer on Wall Street for thirty-five years. It's amazing how once risk-oriented traders and investors have now come to expect bailouts in the form of government-spawned easy money whenever trouble looms in the marketplace. They want to speculate freely, but with a government put attached to place a floor under losses. Mr. Cramer's professed concerns for mortgage borrowers lacks credibility. This is all about Wall Street, where many won't be satisfied until interest rates are basically zeroed-out, permitting asset value inflation to continue. As someone who worked and invested so I could spend my retirement years clipping coupons on Government securities, this is bad news.

I do agree with Mr. Cramer on one item. There will be a real estate implosion in the Inland Empire (and also the neighboring Coachella Valley, where I've now retired to). The area has been grossly over-developed, and will pay a heavy price, no matter what happens to interest rates or even the Southern California economy.

Cramer has his data wrong and his Wall St. bail is wrong - and he is wrong about forclosures too.

Hey Ben - Leave the rates alone and don't worry about foreclosures!

http://www.bloggingstocks.com/2007/10/30/hey-ben-leave-the-rates-alone-and-dont-worry-about-foreclosur/

Cramer here is the problem, if the feds cut the rates, then it may give some relief with the housing issues. But in the same time gas will be so expensive so that families that were able to keep their houses will freeze because they cant afford the heating oil and they wont be able to cook on their gas stoves. Also then families will have problems with driving to work because gas will be hitting $4-$5 a gallon. This will aslo bring food prices up. If anything the fed should do a rate increase to save our plunging dollar, bring down oil prices out of the atmosphere and let buisness deal with their mistakes. They saw easy money with these loans but they are now paying for it in their bank accounts. We must take care of the many in the country rather than the few.

Cramer is not telling the truth about his motivations. He doesn't give a rat's tail about foreclosures or homeowners. He is worried about his hedge fund buddies who are getting margin calls on their short-sale stocks they backed with CDOs (which plummeted in value due to the sub-prime panic) and are being forced to either cover their positions a ta loss or sell their long holdings to raise cash. A lot of them took big risks and may go under. And that's as it should be. But that's who and what he cares about. Fess up Cramer.

Rate cut or not rate cut - it does not matter. No matter what is done the foreclosures will continue. The Fed does not have a magic wand and Bernanke is not Harry Potter. An abundance of cheap money, greed and stupidity is now showing it's downside. Although the media tends to both show and blame the little people at the bottom, they, and their defaults have always been around. They have never caused a problem on this scale. They also do not qualify for 1/2 million and up properties, even at 1% interest. Common sense states that more than half of the defaults are people with resources that should have known better. Jim, you are a finance pundit. If I buy 50,000 shares @ 5.00 and it goes to 2.00 - will the Fed pick up the loss? Does the IRS let me write off 150,000 as a capital loss?
We both know the answer is a big fat NO. Why is housing different? There is no double standard and the investor has to eat the loss.
A rate cut will encourage inflation, push the consumer further and pressure our trading partners using other currencies. It will in fact, cause more default.

What is wrong with this country? We are a free enterprise society (at least this is what I thought we were) why are bailing out the over extending home purchasers and the greed from the banking community? Our government once again disappoints the people who make the U.S. a strong and viable country. Our government has no fiscal responsibility to its patrons. No other words can make me express how disappointed I am with our bailout practices, no wonder our standards of living are going into the toilet let alone the middle class.