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NEW YORK ( TheStreet) -- President Obama's speech today has created some real urgency in the market, Jim Cramer said on "Mad Money" Tuesday. Unfortunately, without the markets falling a lot more, that urgency just won't help get a budget deal done.
Cramer tried to add some perspective to the market's decline, noting that with the S&P 500 just off 4% from its highs, there really hasn't been a lot of pain created by Washington's inability to get anything done. Stocks will roar back once a deal is reached. We just don't yet know when that will occur, he said.
Cramer said it's worth noting that some in Washington have changed their rhetoric from saying a debt default "will never happen" to "we're prepared if it does." That's a significant change as the entire world runs off of U.S. Treasury bonds.Back in 2012, when the "fiscal cliff" was upon us, Cramer said the markets fell precipitously, helping to usher in a last-minute deal. Unfortunately, until that happens again everyone in Washington appears to be sticking to their guns and waiting for the clock to tick a little closer before they're forced to blink. What happens next continues to be unclear and the markets will continue to fall, Cramer concluded, so investors need to be ready.