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Spurious Arguments

By Jim Cramer

 About this article:
 I see a couple of shibboleths being tested right now. First, no housing bottom is ever going to happen. Second, toxic bonds aren't worth much and are all marked too high on all banks' P&L statements. So, let's straighten this stuff out. There are many regions where housing bottomed and is coming back. The magic 40% decline plus the $8,000 tax credit, plus the low mortgage rates -- which could go even lower tomorrow when the Fed starts buying -- make many homes cheaper to buy than rent, especially the foreclosed ones. If you clean up the foreclosures, you clean up the reason to leave your house. Sure, if you lose your job, it's going to be a problem. But you might qualify for the loan modification program. What you need to understand is that at the margin there is less of a reason to walk away...

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