Jim Cramer Blog

The show started with Erin Burnett discussing the housing market as the hurricane season approaches. She then spoke with Daniel Mudd, Pres. & CEO of Fannie Mae (FNM)- the top source of mortgage funding. U.S. sub-prime markets are not operating well, and Mudd does not predict an end soon. He discussed their $417,000 limit and possible regulation changes. Some people in sub-prime mortgages could get out. Mudd says we need to minimize foreclosures and maximize transparencies in lending. They borrow from the government and are exempt from certain taxes. FNM provides liquidity by buying and repackaging mortgages for sale. Kenneth Heebmer of CGM capital management says housing weakness expected to continue, and is impacting consumer expenditures. Thinks home prices will drop to 50% of 2005 prices, doesn't think that it will evolve into recession. Housing sector weakness will be a continuing trend. Charlie Rangel was next on the show, discussing expanding the tax base and lowering the rate. Chris Hoene was on to discuss property taxes. 29% of cities have increased property taxes, mainly due to the troubled housing market. Darren Rovell discussed the high profile sports magazine SI signing with Dan Patrick, who worked at ESPN for 18 years. SI.com accounted for 15-20% of SI's total revenues. Crude oil closed at record high at 89.55.
Faber report: Discussed the pressure facing newspapers. Declining readers result in a decline in advertising. Craig Moffett was on to discuss Telecom in the U.S. AT&T is investing in their strengths, while Verizon invests in the weaker market. Likes what AT&T is doing better. He predicts slow down in market revenues in next 12-16 months due to saturation. Google is working on a $30 million space tour program.
Cramer's stop trading: Jim Cramer is in Georgia tech today. Says PNC, STI doing good. JP Morgan has not done great, just hasn't done as bad as others.

Labels: CNBC, Erin Burnett, Faber report, FNM, Jim Cramer, PNC, SI, STI, Street Signs