This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Jim Cramer: Where to Buy on Cataclysmic Days

NEW YORK ( Real Money) -- For some companies, a default, or at least a whiff of it, is a terrible thing to waste. There are companies that are so itching to get their hands on their own stocks that any pending selloff might be a remarkable moment for them, as they know that their businesses won't be that badly impacted by even an actual default because they think they have seen the movie before when Lehman defaulted.

So, I think they will buy with both hands, knowing that eventually the government will cure the default, even if it's painful and while nothing saved us from Lehman and the money just vanished.

Now, let's understand each other. A default, an out-and-out default, is cataclysmic and I think the President will not risk being the only president to ever default on the national debt. When history looks back, they won't remember the Speaker of the House, they will remember the president. That's a weighty thing to be tabbed with. But as long as the interest on the debt keeps being paid, in some form or another, even if it means other services really are shut and other payouts really are curtailed, there will be no default. The economy will be crushed. Of that, there can be little doubt. You can't have the $60 billion a day that the government pays out, at least according to the Treasury Secretary, not spent and think the economy won't collapse. That's just a gigantic swath of checks that are no longer in the mail.

At that point, the economic pain will be too hard for even the most obstinate of those who refuse to vote in favor of a debt ceiling increase, so we have to figure things finally budge. Obviously, we hope that it never gets to that. But the idea that it is as unlikely as a meteor hitting Washington or a one in 10 million shot or whatever hyperbole we keep hearing, just flies in the face of the anger, bitterness and rancor that matches the level of partisanship at the time of the Civil War.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Real Money
Try it NOW

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Back to Nasdaq


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs