Jim Cramer was on Hardball tonight talking about the economy and Bush’s big plan. To say he isn’t impressed with Bush’s plan would be an understatement. Like Cramer points out – how much do tax credits help? No one will see those for months, if that. The economy doesn’t have that long.
Besides that the most interesting thing that has not been brought up by any one in Washington is the companies that insure these mortgage companies. Yup – there is another layer to this cake that is about to fall. With the mortgage crisis these insurance companies are looking at having to pay out hundreds of billions of dollars, which they don’t have. That means we will see these companies going belly up and sinking Wall Street even more. Cramer says he expects to see this in 2-3 weeks and you can plan on a 2,000 point hit to the market. I guess that isn’t important enough for D.C. to worry about though.