A Quick Recap: The Day The Credit Died

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Dear readers – what a day. I wish I could recap everything that happened, and I might get to it this weekend; if I try now I will have been working or on the phone or responding to email or writing for the last 13 hours straight and my wife will kill me – literally. So here is a quick recap:

A commenter correctly said that NovaStar was not the only one that ceased funding today; many other lenders did as well. Here is a quick summary of those that I know who temporarily (unless otherwise noted) pulled the lending plug today:

NovaStar temporarily suspends funding due to “severe secondary market disruptions”
1st National Lending Services suspends all of the following products: Jumbo, Alt A, Pay Option Arm’s, and Seconds indefinitely (email to brokers) and throws in a round of layoffs for good measure
First Magnus suspends all jumbo ARMs and expanded and niche products (email to brokers)
Credit Suisse Wholesale suspends Subprime, Second Lien, Choice Payment ARMs and all 2 and 3 year ARMs
Wachovia pulls out of Alt-A temporarily
Wells Fargo pulls out of Alt-A
Aegis Wholesale suspends option ARMs, expanded Alt-A and second lien products (email)
Homecomings eliminates rebate on all Option ARMs (email)
Countrywide increases pricing and fees on the LTV/FICO/ Documentation type grids for all documentation types, adjustments for Subordinate Financing, Cash out transactions and larger loan balances (email)
National City makes changes
IndyMac increases pricing and spreads on Alt-A products
American Home Mortgage workers pack it up
Fieldstone stops funding
Bear Stearns says its the worst they’ve seen it in 22 years

And to cap it all of Cramer melts down on air on CNBC; so much so that the network needs to throw up a ~~disclaimer~~ or as a new friend called it DisCramer.

Get that guy a single malt scotch ASAP!

What a Friday. So now the question becomes – Will the Fed cut rates on Tuesday to calm the credit market? What are your thoughts? I have my own but I’ll save them for later.