Mad Mail: Buy a House – Now

Jim: I thought you were of the opinion that banks could not bottom before housing bottomed. What changed? --Dana in Florida

Cramer says: “We saw quarters from Wells Fargo, from USB. We saw a quarter from JPMorgan. We saw a quarter from Bank of America. And those guys had already put charges in that made it so that when housing does bottom, they will be overreserved. That’s the ticket. That’s what Wachovia did. They anticipated a housing bottom and they’re going to be right.” The Federal Housing Authority will put $300 billion to work to help homeowners with exotic loans and that will put a bottom in housing. “I was the first guy that said torch your house for the insurance money. I am now telling you that between now and the next six months you have to buy a house.”


Jim: Booyah from the land of Chesapeake! They're drilling on my land. Can we say royalty checks?! Question: The Sirus -XM merger…will it go through in some form or another? Are you still a player on this merger? --Bruce in Texas

Cramer says: “One year, 156 days. Exxon, Chevron and Conoco could have merged overnight versus this deal. It’ll finally get done. The restrictions are not great. I am concerned that there will be much more financing that needs to be done that will make it so the common stock is not a great bet. But I do believe, as I say in Stay Mad for Life, that it’s perfectly OK to have one speculative stock in your portfolio. And if that one stock is Sirius Satellite out of, say, five, I bless it.”


Jim: I give up. When Wachovia missed earnings estimates by a ridiculous margin and their stock went up, and XTO Energy who beat estimates, went down. What's going on here?!? My head is going to explode. A head spinning, mind-boggling booyah to yah! –Todd in California

Cramer says: “The answer is, be some of both. Own some Wachovia, and own some XTO. That way, whatever’s killing you in one, will be making it in the other.”

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