Despite RealtyTrac's recent announcement revealing that foreclosure filings surged 33% from last year, Jim Cramer is refusing to back down from his shameful housing bottom call that he made in June. In fact, Cramer took his prediction one step further on Thursday when he wrote, "the worst is over" while referencing JPMorgan Chase's recent earnings and statement about delinquencies stabilizing.
While the case can certainly be made that the banking system has been back-stopped thanks to TARP, hundreds of billions of loan guarantees made by the Treasury, and some very bank-friendly tax benefits, it is reckless for Cramer to think that the worst is over for the housing market, how could it be?
With unemployment not projected to peak for another 9-12 months and with most economists agreeing that there is a correlation between job losses and foreclosures, with a wave of option-arm defaults on the horizon, and with foreclosures already surging 33% from last year, Cramer's math doesn't add up. It's not 1991 all over again, Cramer, its 2008 all over again.