Jim: I've been buying U.S. Steel from $40.00 through $30.00. I'm thinking about buying more at today's prices, but I'm concerned about some stories I've been hearing about X. Do you think the prices have bottomed? --Mark
Cramer says: “What people are worried about here are debt covenants…I am so tired of trying to figure out whether letter X is good or bad. I have to have Mr. [John] Surma on, the CEO. I am not going to make a determination without checking in with him.”
Jim: How can it be a shock that foreclosures increased? Unemployment increased. A home is not an earning asset, the homeowner is the earner that supports the debt service. No income, no debt service, the house belongs to the bank, it's pretty simple. The moratoria on foreclosures didn't change the math, it just led to a surge in foreclosures when the moratorium ended. --Merrill
Cramer says: “You said it better than anybody. All the models said that if unemployment ever explodes, foreclosures are going to break loose. That’s why it’s so important to combat unemployment and housing foreclosures. It’s why we favored the $15,000 tax credit that didn’t get in [the stimulus bill]. It’s why we favored 4% mortgages for everyone, including refinance, even if you’re not struggling, because we want fairness. We’ve not been heard about our issues. But we’ll keep trying.”
Jim: Can you explain why there are so many analysts that don't agree with your take on the uptick rule? For example, how will the uptick rule impact the short ETFs? --Chris
Cramer says: Check TheStreet.com for the writings of Bill Furber and Eric Oberg. They make the best case for why we need the uptick rule.
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