The Stages of Grief

From thestreet.com 11/24/08

I spend a good amount of the trading day talking to people from all walks of trading life. On Thursday I had a profound conversation with a guy I had never spoken to before. The conference call was the result of a heated conversation I was having with a money manager regarding Citigroup(C Quote - Cramer on C - Stock Picks). I was fuming about how the shorts were crushing the stock. It felt like it was Lehman, American International Group(AIG Quote - Cramer on AIG - Stock Picks), Fannie Mae(FNM Quote - Cramer on FNM - Stock Picks), and Freddie Mac (FRE Quote - Cramer on FRE - Stock Picks) all over again. It felt like the market was going to zero. I was really worked up. My friend interrupted me and suggested I hold on while he put another trader on the conference call. "Paul" (not his real name) also was worked up about how the markets were acting so irrationally. During our conversation, he uttered a thought in passing, "This feels almost like someone is dying." ....
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Central Banks Should Go Long

From thestreet.com 10/13/08
I have spent 12 hours a day and most weekends engulfed in thought and opinion surrounding this current financial crisis. I have listened to and interviewed economists, congressmen and congresswomen, senators, administrators, regulators and CEOs. There is only one conclusion I can come to. It is clear that nothing is clear ... to anyone . There has been enough finger-pointing to fill a century of political opinion. Banks blame lenders, lenders blame regulators, regulators blame politicians, and politicians, being the carnivores they are, blame each other.
It has gotten to the point where, if I am interviewing someone and he or she starts the interview with a line about how we got here, I stop them mid-thought and ask, "We all have our own ideas about how we got here, now... can you offer any help going forward?"....
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A House of Cards on Solid Ground

From thestreet.com 9/29/08

I have watched, listened to and spoken to more senators and representatives in the last two weeks than I care to. The fact that they are all willing to get on TV and tell us why they think we desperately need a $700 billion bailout, or why we need it somewhat, or why the plan is ridiculous tells me that they know less than you or me.
The way I understand this is that the loose lending practices over the better part of the last 20 years or so is the foundation for a disastrous house of cards. Congress, the Fed and various administrations' acceptance of the "affordable housing" push was the first floor. There is plenty of blame to go around, but without this basic premise, the subprime lending boom-turned-explosion couldn't have taken place. Fannie (FNM Quote - Cramer on FNM - Stock Picks) and Freddie (FRE Quote - Cramer on FRE - Stock Picks) were encouraged to lend more and therefore generate more fees. ....
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Watch for a Builder Rebound

From thestreet.com 9/8/08

When I heard that Treasury Secretary Henry Paulson, Fed Chairman Ben Bernanke and the two CEOs of Fannie Mae (FNM - Cramer's Take - Stockpickr) and Freddie Mac (FRE - Cramer's Take - Stockpickr) were meeting this weekend to discuss a rescue package for the mortgage-financing giants, I wasn't sure how the market would react.
That is until I heard Pimco's Bill Gross talk about the way the feds might backstop the two. He would be the guy to listen to with regard to where money and influence might be applied. His assessment was right on, and the market is certainly applauding the outcome. As you are no doubt aware by now, the U.S. government will take over Fannie and Freddie under a conservatorship plan and receive senior preferred stock. This investment implies the full support of the U.S. government and should strengthen our housing market's shaky legs. .......
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