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Cramer: 'Dysfunctional' Banking System Puts U.S. 'Totally' at Risk of 'Great Depression No. 2'
businessandmedia.org ^ | September 11, 2008 | Jeff Poor

Posted on 09/11/2008 2:52:43 PM PDT by Rufus2007

The fragility of the U.S. banking system puts the country in a more dire position than many people realize according to CNBC “Mad Money” host Jim Cramer.

Cramer, in his September 11 “Stop Trading” segment on CNBC’s “Street Signs” told host Erin Burnett the situation puts the United States in danger of “Great Depression, No. 2.”

Burnett questioned Cramer’s assertion that banks should be bailed out by the federal government, in turn passing the cost off to the taxpayer. “It’s obvious the bank system is falling apart,” Cramer said. “Let’s save it before it goes to zero.”

Here is the blow by blow:

...more (w/video)...

(Excerpt) Read more at businessandmedia.org ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: banking; banks; cnbc; crooks; fanniemae; fraud; freddiemac; govwatch; greatdepression; jimcramer; theft
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To: hiredhand
The Just In Time inventory method allows a company to significantly reduce its costs. It basically shrinks the required size of the warehouse or distribution building. Thus, the companies warehouse lease costs are much lower. IMHO - It really should be up to individual consumers to provide themselves with a disaster storage of food. Mine is about 10 days worth now and I am slowly increasing that. I live in earthquake country however.
61 posted on 09/11/2008 11:33:08 PM PDT by justa-hairyape
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To: Toddsterpatriot

So when will silver be a good buy again ? Wont fall back to $6 will it ? Seems to be trying to develop some $10 support right now.


62 posted on 09/11/2008 11:36:20 PM PDT by justa-hairyape
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To: RatRipper
I understand the principle that these guys have to take risk to make money. But at what point does taking calculated risk turn to drunken gambling? These guys were either drunk with greed or inept.

Fannie and Freddie allowed millions of people to acquire 30 year fixed rate loans at rates lower than the corner bank could or would offer. Once they deviated from their risk model, they got in trouble. If they wouldn't have become involved with trading sub-prime paper, they would still be viable.

63 posted on 09/12/2008 3:46:26 AM PDT by EVO X
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To: TigerLikesRooster; Travis McGee; M. Espinola
Here is a very bitter one minute comment on the F & F bailout:

Video Comment Here

So we just nationalized F & F at the drop of a hat, without any debate, without amendments. Now Congress wants to give crooked former CEO Franklin Raines a $5.3 million severance package for cooking the books. The man belongs in jail. $6.3 billion in obvious accounting fraud.

And Congress wants to give him a Golden Parachute ______________ ? ! $ 200 million in political bribes goes a long way these days.

64 posted on 09/12/2008 4:54:43 AM PDT by ex-Texan (Ecclesiastes 5:10 - 20)
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To: Notary Sojac

Yep, loss of intergenerational memory is a major part of the business cycle between crashes.


65 posted on 09/12/2008 5:27:12 AM PDT by Travis McGee (--- www.EnemiesForeignAndDomestic.com ---)
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To: Toddsterpatriot

I’ll buy any .999 silver coins or bars you have for 12 dollars an ounce.


66 posted on 09/12/2008 5:28:31 AM PDT by Travis McGee (--- www.EnemiesForeignAndDomestic.com ---)
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To: Toddsterpatriot

PS: that would be actual physical silver coins or bars, not paper ETFs or other manipulated make-believe from the land of naked shorts.


67 posted on 09/12/2008 5:54:57 AM PDT by Travis McGee (--- www.EnemiesForeignAndDomestic.com ---)
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To: Travis McGee
I’ll buy any .999 silver coins or bars you have for 12 dollars an ounce.

Averaging down?

68 posted on 09/12/2008 6:53:47 AM PDT by Toddsterpatriot (Let me apologize to begin with, let me apologize for what IÂ’m about to say....)
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To: Travis McGee
PS: that would be actual physical silver coins or bars, not paper ETFs or other manipulated make-believe from the land of naked shorts.

As soon as I cover my shorts I'll let you know.

69 posted on 09/12/2008 6:54:27 AM PDT by Toddsterpatriot (Let me apologize to begin with, let me apologize for what IÂ’m about to say....)
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To: TigerLikesRooster; Travis McGee; M. Espinola
JMHO . . . for whatever that is worth . . .

Goldman Sachs Will Be Next !

Or maybe not. We will see. But the stock is at least 50% out of whack with other share values on the street.

70 posted on 09/12/2008 7:14:25 AM PDT by ex-Texan (Ecclesiastes 5:10 - 20)
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To: JerseyHighlander

JerseyHighlander,
Thanks for the extra explanation and correction.

The guy from Forbes said this method of putting “projected tax credits”
as capital is technically possible but apparently not a Kosher thing
to do.

What also got me is that he said Congress had called at least one
of the groups onto the carpet over irregularities in 2003.
Sounds like either Congress punted and/or the Freddie Mac/Fannie Mae
accountants sweet-talked their way out of the situation then.
But it appears either way they just managed to continue operations
and continue to pile up problems.


71 posted on 09/12/2008 7:20:55 AM PDT by VOA
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To: TigerLikesRooster; Travis McGee; M. Espinola
My evidence: Here is the latest data on how short interest has changed over the past few months and where bets are being made.

Data from Thomson Reuters shows that short positions for some of these banks are still up from where they were six month ago. However, in the last few months, some banks' short

interest has risen while the short interest in others has fallen.


72 posted on 09/12/2008 7:38:17 AM PDT by ex-Texan (Ecclesiastes 5:10 - 20)
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To: ex-Texan
If Goldman Sachs goes down, I suspect all bet are off and everybody will make a mad dash for exit. However, as you said, would it really happen?
73 posted on 09/12/2008 7:40:05 AM PDT by TigerLikesRooster (kim jong-il, chia head, ppogri, In Grim Reaper we trust)
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To: Toddsterpatriot

I got it from a seminar that we attended by Dave Ramsey. You can get more current info by going to www.daveramsey.com and searching his site for - “consumer debt”. Look for a PDF in the search returns titled, “A Special Report on the Business Cost of Financial Stress.” I think the same info is contained in it.


74 posted on 09/12/2008 7:43:19 AM PDT by hiredhand
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To: hiredhand
Thanks for the link. I didn't find that claim in the PDF. I did see that consumer debt was $11.5 trillion in 2005. That's less than $4000 per person. Makes this...

When 90%+ of our citizenry carries $20k in consumer debt, spread across two credit cards, makes a house payment, two car payments, and is using credit to put one youngster in school, the outcome can NOT be good.

...sound vastly overstated

75 posted on 09/12/2008 7:51:58 AM PDT by Toddsterpatriot (Let me apologize to begin with, let me apologize for what IÂ’m about to say....)
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To: Notary Sojac

Buying up junk paper in an attempt to reinflate the housing bubble, treating the debt binge by supplying more debt, is a cure worse than the disease
//////////////
Excellent!


76 posted on 09/12/2008 7:59:17 AM PDT by TomasUSMC
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To: RatRipper

only 10 large banks account for over 50% of the banking system’s assets
//////////////////
It should have been easier for the government to check up on 10 banks than 30. But I guess the bribes were that much bigger also.

Nevertheless, the oversight folks should get a little jail time too.


77 posted on 09/12/2008 8:04:59 AM PDT by TomasUSMC
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To: Secret Agent Man

No one is talking about the greed of the Housing industry. As American Family average size has gotten smaller the average size of home has increased.


78 posted on 09/12/2008 8:07:51 AM PDT by TomasUSMC
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To: Black Birch

Greed over origination fees and fees from securitization.


79 posted on 09/12/2008 8:28:55 AM PDT by RatRipper
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To: ex-Texan

So we just nationalized F & F at the drop of a hat, without any debate, without amendments. Now Congress wants to give crooked former CEO Franklin Raines a $5.3 million severance package for cooking the books.
///////////////
Should we change the independence of the Fed? It sure seems that they are starting to abuse that independence. First 400 billion, then more, now 200 more, and this FF bailout...does that make us liable for the trillions in loans they had out?


80 posted on 09/12/2008 8:41:36 AM PDT by TomasUSMC
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