Jim Cramer's Stop Trading Dec. 6th
Fannie Mae (FNM), Freddie Mac (FRE)
While many criticize the government's strategy for dealing with the mortgage crisis and call it a "bailout," Cramer commented, "I'm tired of hearing that this is a bailout. Who cares? I'm about the money." While he believes a recovery is imminent and "there isn't going to be a collapse" he would stay away from companies with subprime exposure because there is a lot of money bet against them. Rather than spending time pointing fingers, Cramer thinks it is time to acknowledge the responsibility for the current crisis is shared by the market, the government and the homeowners; "I don't care who did bad. I don't want Fannie Mae (FNM) insolvent!"
Concerning Fannie Mae and Freddie Mac, Cramer said, "They're totally insolvent! Give me a break. They're completely and utterly insolvent. Its just we're not allowed to say it. ... The only reason I mention those two ... is that those two are less likely to go after me." He identified fear of liability as the reason more people are not telling the whole truth about the mortgage problem. "It's like when Enron filed a lawsuit against me. ... It's a good thing they went out of business."
"Everybody knows we've got to slow the process down so these companies can raise money. ... Fannie and Freddie are fine because they have the implicit backing."
Finally, Cramer wanted to clear up a misunderstanding concerning his comments about the Chinese. While he praised the initiative of individual Chinese, his antipathy is directed mainly against the Chinese government; "The government itself has got to reign in some of the companies that are rapacious in taking advantage of us."
Published By SeekingAlpha
While many criticize the government's strategy for dealing with the mortgage crisis and call it a "bailout," Cramer commented, "I'm tired of hearing that this is a bailout. Who cares? I'm about the money." While he believes a recovery is imminent and "there isn't going to be a collapse" he would stay away from companies with subprime exposure because there is a lot of money bet against them. Rather than spending time pointing fingers, Cramer thinks it is time to acknowledge the responsibility for the current crisis is shared by the market, the government and the homeowners; "I don't care who did bad. I don't want Fannie Mae (FNM) insolvent!"
Concerning Fannie Mae and Freddie Mac, Cramer said, "They're totally insolvent! Give me a break. They're completely and utterly insolvent. Its just we're not allowed to say it. ... The only reason I mention those two ... is that those two are less likely to go after me." He identified fear of liability as the reason more people are not telling the whole truth about the mortgage problem. "It's like when Enron filed a lawsuit against me. ... It's a good thing they went out of business."
"Everybody knows we've got to slow the process down so these companies can raise money. ... Fannie and Freddie are fine because they have the implicit backing."
Finally, Cramer wanted to clear up a misunderstanding concerning his comments about the Chinese. While he praised the initiative of individual Chinese, his antipathy is directed mainly against the Chinese government; "The government itself has got to reign in some of the companies that are rapacious in taking advantage of us."
Published By SeekingAlpha
Labels: FNM, FRE, Jim Cramer, Stop Trading
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