But now I'm getting emails about "panic." I'm reading the housing blogs (yes, while on vaca), and they're running quotes of respectable mortgage brokers saying that this week is going to be scary, because no one knows how the lenders are going to respond to Wells Fargo with their rates.
So back to Cramer. I know he's a passionate guy; I know he's prone to meltdowns, but this one was big even for him, and while I've never even met the guy in person, that says something. He claims we have "no idea how bad it is out there." I think we do, I just think no one wants to admit it. I got about 20 emails on Friday from local Wells Fargo brokers berating me for my reports. Should the Fed "open the discount window" as Cramer pleads? I'm not sure.
Clearly the credit market needs some help. The fear factor is overwhelming some of the basic fundamental facts, but not all of them. I just worry that if you lower interest rates you're essentially reversing an important, albeit painful lesson. American homeowners got greedy, bottom line. They saw these low rates, they saw these "exotic" mortgage products, and they bought themselves homes they should never have owned in the first place. Now they're in trouble, and many of the them should be.
Yes, there was plenty of predatory lending and plenty of illegal and immoral practices going on in brokers' offices in every state of the U.S., but the bulk of the boom was driven by straight-up brokers with straight-up documents that just happened to offer very cheap money for a short time. People didn't read their papers, didn't take the time to understand their investments and now they're getting burned.
I have to admit I'm torn. People need relief. The housing market needs relief. The credit market needs relief. But is the answer to open the barn doors again and see the rush of blind bulls say, 'It's all ok again. It's time to buy more house. It's now time to forget what we can all afford again?'
I'm not so sure.
Questions? Comments? RealtyCheck@cnbc.com