Why is Cramer comparing 1990 economics to 2007 economics?

Question

The housing market is already worse than back in 1990 and we still have a ways to go.
Investing in the American economy and the dollar now is just plain stupid.
Abu Dhabi is on crack.

All very true statements just not complete statements.
The dollar is MUCH weaker now than in the early 1990's.
Property values (for example in So California) are still super inflated in 2007(that was not as big a problem in 1990) and will have to fall tremendously for anyone here to purchase them. 7.5% of families here in SD County can afford a median priced home at just over $500,000. Even homes at $400,000 like condos in suspect areas are not affordable for most. They are going to have to fall MUCH further in price but that will take alot of time .
Couple years at least In the meantime the glut get bigger. 2008 will hurt even more.
Gas has risen from 50 to 100 in like 5 months???? To think the US economy can afford that???
The lost homes from the wildfires many with out insurance or not enough coverage,
Bee Colony Collapse raising costs for farms
Wall street ignores this
Look at the buying frenzy today.
Arabs decide to buy part of America???
Citicorp???
Sell High??? YOU HOPE!!!!

Oil has risen I meant to say

Answer 1

Because smart investors buy low and sell high, and the best time to buy low is when the stock market is doing poorly. The lower dollar increases our import prices, but encourages American exports, so in the long run it could prove slightly more beneficial.

Also Abu Dhabi is investing in American companies because the country makes so much money from oil that it causes inflation, and eventually hyper inflation, and there is nothing better for a countries future then investing, so when the oil runs out they can collect dividends and sell stocks.

Answer 2

housing is worse in some areas of the country. The hot spots are no longer hot. But as long as we can keep people employed then they will make money and have a need to spend the money. Housing provides a way to spend it and it also creates assets. Look for housing to come around in about a year but if you wait too long then you miss the boat. too soon now but be prepared. rates will be 3% next year

Answer 3

It's all relative, it seems worse now because YOUR going through it. There is some truth to history repeating itself, but that's only if you let it. We are now smarter and can change the results. It's always better to be proactive rather than giving up on it. Sure there is a write down situation, but that can be an opportunity if you know where to look. There is always at least 2 sides to every transaction, so know where to look.