D.C. Dithering Changed Equation: Cramer
NEW YORK ( RealMoney.com) -- Here's a compelling question I just got: "Mr. Cramer, didn't you just say we won't have a recession, and now you are calling for a double dip?"
Let's parse this. Before the mind-bogglingly horrible compromise in Washington that took us to the brink, we were doing OK -- not great, not bad. We had some weak numbers. We had some good numbers.
But the damage that was done from the actual talks -- that's right, the actual talks -- was significant. The collapse of any plan in Europe, when we thought that was done, was significant.
I often find that people do not understand the fluidity of a given situation. They think that if the economy is good and you say it is good, and if big fundamental changes occur for the worse, it is just important to stay positive and just not admit, not that you are wrong, but that the facts changed dramatically.Let me ask you, if we had a grand bargain to cut spending over time and have some taxes raised on the super-rich and came up with a plan to stop the mindless hiking of Medicare costs -- all of which were close to fruition -- do you think we'd have this morass? Do people believe that these events in Washington truly had no impact? That they were somehow in our past and that they didn't cause some damage? It is so easy, in hindsight, to say, "The government will almost fail, and we will almost not pay Social Security or the military or our bond interest, so sell everything." I wish I could have seen that coming. But it happened. We almost got there. That's a very big breakdown of a government that people counted on.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV