[video] Jim Cramer Quick Take: Blame It on D.C.
NEW YORK (TheStreet) -- The third quarter earnings season unofficially kicked off this week and TheStreet's Jim Cramer and Debra Borchardt take a look at how the government shutdown could affect reporting.
Very few people predicted that the government would actually shutdown and that includes plenty of corporations that didn't expect their businesses to be affected.
But lo and behold, the government shutdown, which began Oct. 1, continues to drag on.
Cramer said that aside from actually affecting some businesses and their revenues, it also makes it hard for others to forecast their guidance because of the lacking resolution.However, very large corporations should be fine, since many operate on an international scale and are well-diversified, he added. But since the government is holding back checks for furloughed workers and social security, it's definitely going to have its effect. Cramer went on to say that Europe is making a comeback and that August was likely the bottom for auto sales. So is it probable that we'll see companies use the government shutdown as an excuse for current earnings or for guidance? Of course! Cramer concluded that companies might as well use it as an excuse, because it's such an easy event to blame. Video
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