Excerpted from: http://www.cnbc.com/id/25818021
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 US Bancorp. 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.
