This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

Cramer: Fiscal Cliff Not Overhyped

Stocks in this article: NYT SPY

NEW YORK ( TheStreet --

Debra Borchardt:

Jim, we have been talking about the fiscal cliff for a couple of weeks now.

Jim:

Right.

Debra Borchardt:

And we've got probably a few more weeks to talk about it, but now we're starting to hear people saying, "You know what? It's been overhyped. It's not that big of a deal." And I guess now it's a point for us to step back and say, "You know, are we overhyping this, or is this a real concern? We really do need to let people know."

Jim:

Right. Well our own Doug Kass was interviewed in an amazing article this morning in the New York Times (NYT - Get Report), and Doug feel adamant that we're maybe overblowing it, here's my issue.

Debra Borchardt:

And Barry Ritholtz.

Jim:

Yes.

Debra Borchardt:

The Big Picture, he thinks it's getting overblown.

Jim:

I think it's really not overblown, and I'll tell you why. By the way, the market says we'll have a deal. I mean, I want to distinguish two things. One, is will there be a deal ultimately, okay, versus no deal? Ultimately if there's a deal then we'll be fine.

Debra Borchardt:

Like the game show Deal or No Deal.

Jim:

Yeah, or no deal. Yeah. And it is a Howie Mandel. Ultimately we'll do fine. But if we don't the spending cuts are pretty harsh. The job loss is very meaningful, and for our point of view, as people who talk about stocks, it's very different from what Doug talks about. When companies start reporting, if we have not solved the fiscal cliff, why not take things down? I mean put yourself in the head of the CEOs who talk. The vast majority of CEOs are Republican or Democratic. They want the fiscal cliff resolved. If it's not resolved, it's really difficult to say that the numbers will hold up as well as if they are, and it's also easier to lay off people.

I mean because if you believe, as is the congressional budget office, that a recession is probably likely, why would maintain the same level of employment that you have when we're not having a recession? You're going to have to radically refigure. So yes, if we get a deal, ultimately December/January, it will be good. Although AMT very hard to roll back. But if we don't get a deal, I think it's kind of silly to say that there won't be any economic impact of any sort. It's too big.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs