Jim Cramer predicts that a lot of people will whine about the federal takeover of Fannie Mae and Freddie Mac—especially those shorting them—and say it won't help. But they're dead wrong, Cramer writes on TheStreet.com: it's going to turn housing around and bring the rest of the economy with it. “Put simply, there will be no reason to foreclose” once Treasury gets involved.
The economy tanked because trillions of dollars were wagered on house appreciation, leading to “a financial Armageddon quality we have not seen EVEN IN THE GREAT DEPRESSION,” Cramer writes. But when feds hold the mortgage papers, “ANYTHING can be worked out.” And, he says, "With mortgage paper turned into federal paper, the holders worldwide, from Russia to China to Europe, will be made whole. The world will rally and something good, at last, will occur."
(Read more Jim Cramer stories.)