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Cramer on BloggingStocks: Fannie and Freddie could be the martyrs |
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| Aug 21, 2008 09:09 AM UTC |
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Tracked Blogger
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Via BloggingStocks:
Filed under: JPMorgan Chase (JPM), Federal Natl Mtge (FNM), Wells Fargo (WFC), Housing, Cramer on BloggingStocks  TheStreet.com's Jim Cramer says the common would be crushed on a government takeover, but everything else would be saved.The most important positive that must occur in this economy is for housing to stop going down. It is even more important than oil going down, because it cuts to the core of consumer confidence and credit. House prices are coming down, but that's not enough. We also need lower mortgage rates, and the spread between the mortgage rates and Treasuries is so high that it's hard to make case that you are getting any sort of bargain at all on the money you are trying to borrow. It should be a great time to buy a house -- no demand, plenty of supply -- but mortgage rates are just too high. But we all know how they would go down and go down big -- if Treasury took over Fannie (NYSE: FNM) (Cramer's Take) and Freddie (NYSE: FRE) (Cramer's Take) this weekend. If you back off Fannie's and Freddie's bonds, you get a decline in rates of mammoth proportions. It might make sense to buy a house simply because the rates would be so low. Continue reading Cramer on BloggingStocks: Fannie and Freddie could be the martyrs Permalink | Email this | Comments<map name="google_ad_map_145-1290965"><area href="http://imageads.googleadservices.com/pagead/imgclick/145-1290965?pos=0" shape="rect" coords="1,2,367,28" /><area href="http://services.google.com/feedback/abg" shape="rect" coords="384,10,453,23" /></map> 
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