Jim Cramer Predicting 2000 Point Stock Market Drop
I just saw Jim Cramer a few minutes ago on MSNBC and he was saying something along the lines that if the government didn't bail out the mortgage insurers that we were looking at a 2000 point drop in the Dow at some point.
This is pretty much what I was telling this one buddy of mine who is only a few years from retiring who insists on putting GINORMOUS amounts of money in the equity choices of his 401(k) and then comes to me sounding suicidal when the market drops a couple of hundred points.
I think Cramer's right.
I think we're looking at hundreds of billions of dollars worth of exposure that only something the magnitude of the federal government can even attempt to bail out.
Unfortuantely with the political pressure, you can't bail out the home owner's without also bailing out the bond holders so that whole thing will probably be allowed to implode and then we're looking at real 1930's-type conditions - real starvation, real hopelessness.
Crying shame the power won't probably be on often enough to even blog about it when it hits ...
Is a mortgage insurer crisis imminent? - Don't Mess With Taxes
And On That Note: