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NEW YORK (
) -- Those who complain about the markets are wearing their political hats and not their financial ones, Jim Cramer said on
Thursday as he opined on the deluge of criticism towards Ben Bernanke's latest moves. Cramer said in the end, the
has made him feel better about the future, and that's all that matters.
With the very real possibility of a 1995-style government shutdown upon us, Cramer said it's only logical the Fed would not introduce tapering ahead of what could become a very debilitating economic event. Every past government shutdown has been met with big market declines, and there's no reason to think this time it will be any different. The economy is already slowing, as evidenced by weakened outlooks from just about every major retailer this quarter.
Cramer noted that some critics say the Fed has lost its credibility, but that's just not the case -- just a few words from Chairman Bernanke were able to shave a quarter point off of interest rates in a single afternoon.
There are certainly anomalies in the market, Cramer admitted, with stocks like
moving on little or no news. But those are rare cases, and even these high fliers will offer little protection once Washington starts its wrangling again.
Executive Decision: Alex Smith
In the "Executive Decision" segment, Cramer spoke with Alex Smith, president and CEO of
Pier 1 Imports
(PIR - Get Report)
, the home goods retailer who disappointed Wall Street with a 4-cents-a-share earnings miss on weaker-than-expected revenue, news that sent Pier 1 shares 14% lower.
Smith said he's definitely not happy with Pier 1's performance in the quarter, but he's not blaming the macroeconomic environment for the shortcomings. Instead, Smith admitted he made some mistakes such as focusing too much on his company's online business and failing to drive enough shoppers into its 1,000 retail locations. In retrospect, Smith said the over-excitement towards online was not a smart decision.
Going forward, Smith said that the focus will return to Pier 1's retail stores, with TV ad spending picking up between now and the end of the year. With a new crop of holiday ads, Smith said the company is very optimistic about the upcoming holiday season.