I have been saying now for a while now that this mortgage problem is not a subprime problem. Back in March, I penned a post " Should Regulators Have Their Way With Mortgage Lenders?". I am glad that finally, Cramer has come around to saying the exact same thing. The Bear Stearns $900 million hedge fund that purchased mortgage bonds is under water and whats interesting is that this hedge fund did not own the riskier subprime securities.
I believe that federal regulations will have to dictate the future of the mortgage industry just like it did when the banks collapsed and many million people lost their savings during the Great Depression.
-- Faisal Laljee