I think the facts he cites are correct. I don't believe for a second that he concerned with the 7 million home owners who might lose their homes, nor do I believe that Cramer wrote most of this article. I think someone with much better knowledge and a much better command of the English language wrote everything except the last two or three paragraphs.<p>
I think the most important point the article makes is the part most folk don't understand. The credit expansion upon which all the paper has been built may become a credit contraction that will cause money and credit to dissappear. The money which the large institutional lenders, ( the secondary market ), was loaning, was borrowed and mortgage and other credit paper was the collateral. As that paper is revalued downwards, it may not matter what the Fed lowers the Fed funds rate to. The lenders can not borrow without sufficient collateral and even if they do have collateral, it may not be in their best interest to use that collateral to loan more, especially if the new loans are suspect. Sorry, am being called to dinner.
