Filed under: CIT Group (CIT), Federal Natl Mtge (FNM), Countrywide Financial (CFC), Lennar Corp’A’ (LEN), Washington Mutual (WM), IndyMac Bancorp (IMB), Housing, Cramer on BloggingStocks

TheStreet.com’s Jim Cramer says most people — including the Fed governors — haven’t spotted this market Achilles heel.

Round up the usual suspects: Radian (NYSE: RDN) (Cramer’s Take) - MBIA (NYSE: MBI) (Cramer’s Take) - MGIC (NYSE: MTG) (Cramer’s Take) - Ambac (NYSE: ABK) (Cramer’s Take) - PMI (NYSE: PMI) (Cramer’s Take).

Throw in walking dead ACA Capital (NYSE: ACA) (Cramer’s Take) and Security Capital (NYSE: SCA) (Cramer’s Take), and I think you produce what is really wrong with this market.

Anybody who takes even a casual look at the October delinquencies knows that these companies are going to be severely capital-challenged. Meanwhile, value guys like Third Avenue Management (Radian) and fellow travelers (Old Republic and PMI) make Pyrrhic stands and engender short squeezes that are mistakenly not used to recapitalize. And outfits from E*Trade (NASDAQ: ETFC) (Cramer’s Take) to Fannie Mae (NYSE: FNM) (Cramer’s Take) are left holding the bag on this stuff.

Continue reading Cramer on BloggingStocks: Don’t ignore the mortgage insurers

Permalink | Email this | Comments

Share This

This entry was posted on Tuesday, November 20th, 2007 at 1:06 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.