This Day On The Street
Continue to site
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

Jim Cramer's 'Mad Money' Recap: A Deadly Washington Game

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.


NEW YORK ( TheStreet) -- The buyers in this are starting to think Washington has become a big joke, Jim Cramer said on "Mad Money" Wednesday, but he fears that the punchline could be deadly.

Simply put, Cramer said the market, and our economy, simply cannot afford to see a default on our debt come Oct 17. He said investors from around the world buy U.S. bonds for safety, stability and income, and if Congress takes those away, those investors will move their money elsewhere. This is a big deal, Cramer warned, and one investors should be taking seriously.

Yet, today's initial public offerings of Remax (RMAX) and Burlington Stores (BURL), operators of the Burlington Coat Factory chain, were up sharply despite the fact that real estate will be hurt badly by a bond default and apparel has been among the hardest-hit retailers this quarter. Cramer said investors are betting that a deal will come in the knick of time, but aren't factoring in the downside if it doesn't.

The buyers of these stocks are either worried they'll miss the rally if they don't get in now or they feel that stocks can withstand a default, but neither could be further from the truth if a deal is not reached and our country defaults on its debts, Cramer said.

Executive Decision: Marty Mucci

In the "Executive Decision" segment, Cramer checked in with Marty Mucci, president and CEO of Paychex (PAYX - Get Report), to see how the government shutdown and Obamacare are affecting employment in our country. Paychex last reported a one-cent-a-share earnings beat on better-than-expected revenue with the important metric of paychecks per client rising a modest 1.6%.

Overall, Mucci painted a bullish picture for small business in America. He said while some businesses are sitting on the sidelines and others are confused or delayed by the new laws and government shutdown, small business is starting to make a comeback as evidenced by 14 quarters in a row of rising checks per client.

Mucci said the biggest factor for small business formation is consumer confidence. He said if consumers are buying products, then entrepreneurs will open new businesses to meet those needs.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

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
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

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
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG
ENB $52.98 0.00%
PAYX $48.28 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs