Cramer about to meltdown again I think...CNBC now. Fed

[Subdivisions]

votes to leave interest rate at 5.25%.

Now let's see what happens.

[Lex]

1. Why would leaving the rate alone cause Cramer to melt down?

:shrug:

[hatrack]

3. He wants big emergency cuts to save his friends in the mortgage sector

Either that or all those thousands of people losing their homes for whom he's suddenly (and bafflingly) displayed heart-wrending concern.

[Lex]

8. Cutting the short-term interest rates wouldn't help those

already in foreclosure anyway, and probably not those in trouble right now.

I'd say saving his friends in the mortgage sector is right on target.

[AlCzervik]

13. the feds will cut the rate i bet within a month. If they announced it today

i imagine the market would panic which it may do anyhow today.

[HereSince1628]

7. Cramer's been looking for a rate cut since late last winter.

Much of his advise was based on the notion that a cut would come in the second quarter. It didn't.

It's a hard time to be the bull he always wants to portray.

[mikelgb]

2. ah the Fed

always lookin out for us

[ProudToBeBlueInRhody]

4. He's always melting down

I'd enjoy watching the guy if I actually had any clue what he was saying.

[npincus]

5. saw that on NBC Today Show...

Cramer forsees "7 million american homes going into foreclosure" if Feds failed to lower interest rates.

[PearliePoo2]

6. what's happening is

the dow is now heading straight down

[Lone_Star_Dem]

10. It was down just over 57 points when I looked.

Not to bad really.

[HereSince1628]

11. Yes, about a 100+ point drop since the top of the hour.

[Ikonoklast]

9. He has the right idea

Help the small mortgage borrowers, and let the hedge fund managers bail themselves out.

This will depress housing prices for the immediate future, next spring may be a good time to pick up some real estate at a good price.....

I don't want to sound like a bottom-feeder, but I just finished securing a line of credit for this very circumstance.

[AX10]

22. "Help the small mortgage borrowers, and let the hedge fund managers bail themselves out."

I hope it works out that way, though I can see it not going so because the system is rigged to aid the wealthy.

[Ikonoklast]

26. Yeah, who would you bet on?

I always bet on the billionaires, for some reason they always seem to win against the little guys.

[Sapere aude]

12. More people will lose their homes if rates go up. The payment on variable rate loans will go up

also. And new loans will be not as available to many slowing down the sales of new and existing homes. My house has been on the market for over 6 months now.

If rates fall we may have a better housing market again. Even if housing prices fall the rising interest rates will make them just as hard to buy as before.

[maxrandb]

15. What if you're in an ARM

and you planned to refinance and "lock-in" if the rates go up? We've got great credit, no financial problems, steady income, but if there's no money available to borrow, am I stuck?

[question everything]

23. First, look if you have a pre-payment penalty

that would prohibit you from refinancing without paying a ton of money.

This is a trick that too many ARMs loans have been using, and that Clinton is intend on abolishing.

If your credit history is good, start looking around. Lenders do want "traditional" borrowers with a history of good payments. But such borrowers are now sitting on the sidelines, waiting for home prices to drop.

[roamer65]

14. Bernanke is walking a tightrope.

He has to maintain the interest rate differential with Japan and Europe, otherwise the dollar goes right into the crapper. So how will he address the credit crisis? Massive inflation of the M3 money supply. I expect M3 money supply will go well beyond the current 13%/annum growth rate. They're gonna push massive amounts of money into the banks to keep them liquid. They're gonna do exactly what the Bank of Japan did in the early 1990's in response to their credit crisis.

[AX10]

17. Either way, we have a real problem here.

A crisis can now come at anytime. If they keep on putting money into the system, the value of the dollar will become less and less.

[aint_no_life_nowhere]

25. And I don't see the general media paying much attention

With the exception of finance and investment channels like CNBC, I don't see much being discussed on cable news or the networks. Is this going to be yet another major problem that creeps up on America and suddenly catches it by surprise?

[Ikonoklast]

19. I'm afraid that you are right

Bernanke is hoping that some 'magic' will happen before he has to inflate the money supply, so the problem goes away with him having to do anything to solve it.

Ain't gonna happen. We're headed down a very dangerous path; deflation can spiral out of control and is harder to stop than inflation. Downward pressure in housing prices on a nationwide level could turn into a runaway train.

[newportdadde]

16. Rates need to go up, this feed trough of easy credit needs to dry up, inflation is rampant.

[Myrina]

20. "easy credit" ?

I wish. :(

[aint_no_life_nowhere]

18. Cramer only looks serene and composed when he's gravely ill

For his sake, I'm glad to see that he's his normal, unhinged, and healthy self.

[ProdigalJunkMail]

21. dow reacts...

down 109...about 150pt swing in the last hour

sP

[Tsiyu]

24. Just read a blurb from Cramer from a link at mediabistro

Daily News Feed.

He claims he wanted a clear conscience and that's why he went off, saying something like "you're supposed to be calm on TV but..." says he spoke his mind and is done with it.

But maybe not,,,,,

[shireen]

27. wouldn't lowering interest rate hurt the value of the dollar even more?

I don't understand much of this stuff, can someone explain the big picture?

[notadmblnd]

28. I got the impression he was talking about his housing investor friends

on the video of his meltdown. You know, the ones trying to get rich quick doing all the "flipping."