If you’re thinking we will soon be entreated to a 2008, once every 100 years decline — you’re wrong. While the bubble is frothy and filled with air, there are none of the signs of meltdown now like there was in 2008. Cramer is making some obvious points here.
CNBC’s Jim Cramer says Wall Street should not assume a recession is on the horizon.
This time around, he argues, it’s not concern over consumer confidence, credit or derivatives that’s causing markets to fall.
Cramer cites former Fed Janet Yellen who said the yield curve inversion as a recession indicator appears different this time.
Remember what 2008 was all about. Absolute homeless people buying $800,000 homes with HELOCs attached, getting BTFO when Greenspan hiked rates. Had Greenie kept rates low, that homeless dude’s house would’ve been worth $1.5m today. Instead, Joe Blow from the sanitation department bought it.
Housing is the biggest risk to the system. Everything else can be handled and dealt with.
Markets jumped off at the open and are now melting the fuck down. This is typical and customary after large decline.
My best guess is for flush out if we go negative, followed by a bounce. Let’s see how it plays.If you enjoy the content at iBankCoin, please follow us on Twitter