Tuesday, June 2, 2009

Jim Cramer Calls The Housing Bottom

Greg: Hello?

Cramer: Did you see the Pending Home Sales numbers today? This is THE BOTTOM!

Greg: Really? Are you sure?

Cramer: Absolutely. This is patently obvious.

Greg: So, what do we do now?

Cramer: I am frantically trying to buy properties right now. I will literally buy a building in the next 10 days because of these numbers.

Greg: Gosh Jim…the situation seems awfully complicated…what makes you so sure?

Cramer: If you combinate the affordability with interest rates and then add in the $8,000, you are gonna crush the inventory.

Greg: If you what?

Cramer: This number is definitive. And buy Bank of America.

Greg: What about negative equity? Aren’t you worried that more people are going to walk away from their homes?

Cramer: If you think your house is going to continue to depreciate, you have to walk away…it’s a good economic decision.

Greg: Wait…so why is this the bottom?

Cramer: You don’t know how to do fractions.

Greg: Good luck with all of this Jim…I hope it all works out for you.

Cramer: Hey, Greg, aren’t you going to start buying some property out there in San Francisco?

Greg: Can’t, Jim. I lost all my money after you recommended that I buy General Motors. That stock was supposed to go to $80!!!