Thursday, June 04, 2009

Jim Cramer says what?

Jim Cramer says housing prices have bottomed:

I disagree:

You would expect price declines to slow before they stop. It seems that Jim Cramer is confused by the difference between housing sales and housing prices.
Posted by at 6:39 AM
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15 comments:

  1. AnonymousJune 04, 2009 6:59 AM

    Is this the 100,000,000th time the bottom has been called over the past 4 years or the 100,000,001th time? I think I have lost count.

    How many more times is it going to be called over the next year or two do you suppose? Who wants to put a prediction on that number instead of home prices?

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  2. AnonymousJune 04, 2009 7:25 AM

    "How many more times is it going to be called over the next year or two do you suppose? Who wants to put a prediction on that number instead of home prices?"

    About a million more. Especially now as the bottom clearly is coming into view. Just like it was during the runup when "the bubble is now bursting" was called
    nearly daily starting in 2004. Its just human nature I guess.

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  3. AnonymousJune 04, 2009 8:02 AM

    Gotta get the last sheeple in before they shear em. He he

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  4. AnonymousJune 04, 2009 8:34 AM

    Another thing I read, just today:

    "We are not even close to a bottom on housing"

    This has been repeated every day since 2005 and will continue to be repeated for about 6-12 months after the bottom has passed.

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  5. AnonymousJune 04, 2009 9:31 AM

    We're not at bottom. But it's possible that we're close enough that buying now would make sense. In my College Park neighborhood, we're closer to bottom than to top, as evidenced by a foreclosure auction on May 19, where a house went for 155k. That house was bought for 361k in Oct 2006.

    But IMHO there's no reason to feel forced to rush out and buy now because there's a near zero chance that house prices will start appreciating in real terms for a long time. Prices only got so high because the massive appreciation fed into a "buy now or be priced out forever" buying frenzy. Especially if you're not looking in a lower priced neighborhood like mine. The bottom rungs of the housing ladder failed first, but the rot hasn't reached the medium/upper levels yet. People who live in one of the Chevy Chases are less likely to lose their jobs, and usually have more savings to burn through than in my neighborhood. Nice neighborhoods haven't seen the massive levels of distressed sales that my neighborhood has.
    --Jim A.

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  6. DavidJune 04, 2009 12:01 PM

    Jim Cramer is often wrong about economic issues. I would not put much stock in what Jim Cramer has to say (or shout). Boo Yay!!!

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  7. AnonymousJune 04, 2009 3:17 PM

    unbelievable ! i cant count how many times he's been wrong on different subjects! no way in hell have we reached the bottom ! im so tired of the spinning ! cnn, cnbc , of course jim cramer , not to mention several others ! get real! i sure hope the majority of the people do not fall for this crap !!! i know. wishful thinking !

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  8. AnonymousJune 04, 2009 4:45 PM

    There is a reason that he is wealthy and you are not. Being correct on a regular basis apparently does not factor into that equation either way. (either for you or for jim cramer)

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  9. AnonymousJune 04, 2009 6:04 PM

    They need people to buy and support the current home prices, so the capital markets can do business. There will be more calls for bottoming out till it reaches real bottom. Currency is just trade products not really a product by itself.

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  10. AnonymousJune 04, 2009 7:40 PM

    lol you are kidding right ! CALLS FOR A BOTTOM ! there is nothing that can be done to keep housing from falling in price . cramer or anyone else! im not even going to try to explain it . if you havent figured it out by now you never will . cramer influences those who are weak , uneducated and cannot think for themselves.they believe the spin and refuse to take off the blinders ! im looking forward to cramer eating crow !

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  11. UnknownJune 04, 2009 10:08 PM

    as anon 9:31 said, the rot hasn't climbed upward yet. i am seeing upper income professionals lose jobs for the first time in their lives. and, yes, they tend to have better cushions than those farther down the economic scale, but their cushions are not unlimited. this group also tends to hold out for a new job that pays them the same or more than the one they lost. ego, i guess. then it's too late -- there's more competition for the remaining jobs. i saw this happen alot after the dotcom bust.

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  12. AnonymousJune 04, 2009 11:04 PM

    I stopped disliking cramer a long time ago. It's like picking on a kid with emotional issues: it was fun until you realized he really was slightly mentally retarded. Of course cramer's TV appeal is his retarded antics on his program and that's the only thing keeping him going.

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  13. AnonymousJune 06, 2009 5:24 PM

    Coming inflation increases will take care of all of this. House prices will stabilize and the rest of the correction in the red curve will be due to increased inflation.

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  14. AnonymousJune 08, 2009 1:35 PM

    Cramer is sometimes amusing. And at the end of the day, THAT is his job. He's an entertainer, not an analysist. Sometimes there is a fact or two hidden in his histeronics, but really, that's not why he has a show. --Jim A

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  15. AnonymousJune 09, 2009 2:46 PM

    It appears that you have not updated the US House Prices graph and data for some time. This seems to be true of all the graphs in the mysite.verizon.net/vzeqrguz/housingbubble/ site. When can we expect to see these updated?

    Thanks,
    David Barbour

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