The Fed Finally Moves on Mortgages By Jim Cramer About this article: This housing situation could have been avoided! It could have been avoided by the Fed buying mortgage paper. But no, the Fed thought it had everything under control. Now they are doing it. Now. And the impact is huge, given that we have so much room to drop for mortgages. There is no doubt in my mind that the key to the resurrection of Bank of America/Wells Fargo/JPMorgan Chase is the return of housing. Housing returns when mortgage rates are down big, and pricing is down big, and that's what we have in Florida and California, the two hardest-hit areas. Not only that, the Fed at last has given us some pocket change through refinancing, or at least through applications. That, plus lower gasoline, can lead to something better in 2009. It bothers me immensely to see that the Fed just totally blew this. Buying government-sponsored enterprise debt was... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200. More Stories From RealMoney Durable Goods Up Move Down the Tech Food Chain Jobless Claims Still High Bulls' Tenacity Is the Big Question Mark Should You Buy It? Pharmaceutical Product Development Bad News Trumps All Support for Banks Holds, For Now Bummer, Yields Are on the Rise Money on the Line Makes a Big Difference Structured Products: Unsafe at Any Price MORE STORIES FROM REALMONEY

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