back to blog homepage

Jim Cramer's Current Rant

Below is the current rant from Jim Cramer. I know a lot of people that read this also follow Cramer on TV, so I thought I'd share his writing today.

Last week, I had a couple of graphs on this blog showing the reaction of the traders each time the President came on TV. They immediately started selling, reversing rallies. I took the graphs down as I didn't want anyone to think I was trying to be political on the blog – the purpose was simply to show that the investor class is scared and that until their sentiment changes we will not see a recovery in the market. And without a recovery, the impact on 401k's – and people's ability to retire and their sentiment to act as a consumer – will continue to be negative.

Cramer has taken this concept and ran with it, blaming the President and his recently announced policies of an even bigger trashing of the market ahead of us. I am not offering an opinion on whether Cramer is right or wrong, but since so many people follow his advice I wanted to share with you what he has to say – it has a tendency to move markets, for better or worse.


Hey, Obama! The Stock Market Matters!
By Jim Cramer

3/2/2009 11:09 AM EST

They are not listening. The president is not listening. His advisers are not listening. They are not watching or listening to the stock market. It seems to be meaningless to them.

I am not asking for a Plunge Protection Team. I don't want to see the president coming to Wall Street and saying, "we feel your pain." But there should be some sense that the market is totally falling apart and that we could be at levels that will wreck so many people's live savings — yes, there is that much in the market — that it wouldn't be so bad to say, "Here are my goals, I want to do cap and trade, I want to make it so we are being prudent about health care and I want to balance the budget and I want to raise taxes for the wealthy, but I also recognize that the moment is so perilous that we must wait for my agenda until we are more on terra firma."

We need to hear from the president, "We see that there is a terrible reaction to what we want to do, and that's fine given how many things were done wrong before me, but that doesn't mean we need to force the agenda because the agenda is pushing down everything, not just the banks."

In other words, I have thought that the banks could be dead meat with Tim Geithner at the helm. I have not been recommending the purchase of any bank stocks beyond what you might have. But, I also think that the president's actions and talk and budget have put a bull's-eye on EVERYTHING else — the drug stocks, health care, the utilities and construction, the oils and the gases — you are taking on pretty much every sector that matters to this market.

We have failed to cordon off the banks from the rest of the market because of Obama's actions. He has made people scared, made people worried about their money and their spending because they fear where their taxes are going and because they recognize that there may be no bottom in the economy.

I know that a young president with a vigorous agenda and a Congress that senses blood in the water against the Republicans might find changing the world irresistible. But I also know that when you have the Dow go below 6000, or even 5000, it will trigger poverty and despair among far more than just the rich.

Think of it like this: We can handle the decline of 10% of the S&P from these levels — the financials. But do you think that Hartford (HIG) or Pru (PRU) or Principal (PFG) or Lincoln (LNC) or Allstate (ALL) or MetLife (MET) — or anyone else that has invested your money for future payouts — can possibly make those payments?

Stability matters here. Stability as measured by the stock market. That's vanished here. The president needs to forbear with what is now regarded as a radical agenda if we want to stabilize the stock market and therefore people's live savings.

No president can be oblivious to the stock market after the previous president spent eight years talking about the ownership society with the ownership being your house to the stock market. You can't trash 'em all without causing a tremendous surge in poverty. I repeat, THE STOCK MARKET DOES MATTER.

I am not saying give 'em a Bloomberg terminal. I am saying let him see the destruction. Let him know about it. It's almost if he thinks the stock market must correct to get us where we have to go. But to me, they have also become part and parcel, and where we go — say 6000 or 5000 or even 4000 — is being put on the table right now, right here with this current agenda.

And I don't mention below 4000, because I want to be taken seriously even though being serious includes mentioning levels below those prices. When we were last at 4000, there was a great new world ahead of us with the dividend coming from the fall of the Soviet Union and the remarkable blooming of capitalism worldwide. A repudiation of communism and socialism. Plus a remarkable multiyear move ahead of technology where the PC passes the mainframe, the where email replaces snail mail, where the Internet takes the world by storm and the cell phone goes from something for the rich to something for everyone.

Oh, and perhaps most important, the public discovered stocks as a place to put their retirement, and corporations handed off their pension obligations to the people, and their IRAs and the 401(k)s went almost entirely into stocks as the only long-term investment.

Now, despite Warren Buffett's bullishness of the future, the future of ahead of 1994 was a heck of a lot brighter than the future as I see it now. With what seems like mandated wealth destruction trumping wealth creation, it seems perfectly legitimate to compare the two, and 2009 compares highly unfavorably to those old levels. Put simply, with this president's agenda and with the times as they are, the future looks far worse than the past.