Without more jobs, President Obama's agenda will "slowly squeeze the life out of this market," Jim Cramer told the viewers of his "Mad Money" TV show Wednesday. He attributed the market's recent slide and continued sideways trend to a shift in opinion among investors on just how well Obama is handling the economy. Cramer accused Obama of misreading the economy, saying that his anti-business policies and failed stimulus are not creating jobs and are instead allowing the U.S. to fall behind the recovery efforts of China and France.
A Green TradeInvestors looking to cash in from Obama's cap-and-trade energy initiatives should look no further than Baldor Electric ( BEZ), said Cramer. This producer of high efficiency electric motors is the perfect way to offset the added cost cap and trade will add to consumers and businesses alike, he said. Cramer last recommended Baldor on June 17, 2008, a call which he now said was a mistake. The stock, which traded at $36 then, slid to $10 a share before rebounding to $21 today. Cramer said he owns this mistake, but feels that Baldor is now blessed by Congress with the new cap-and-trade legislation. Cramer said the new initiative designed to cut carbon emissions will hurt businesses overall, but will help Baldor, who says that 75% of its motors will have bolstered sales from the new regulations. The company also has a 3.2% dividend yield, which Cramer said will pay investors to wait for cap and trade to take effect. Cramer said he'd be leery of Baldor if cap and trade doesn't pass the Senate. The company recently lowered its guidance for the second half of 2009, but that decline is already priced into the stock, said Cramer. He predicted that cap and trade will pass and that Baldor will deliver an upside surprise in 2010.
Outrage of the DayCramer once again sounded off against the oil futures markets, and their continued efforts to manipulate prices. He said the opposition to reform must be stopped. Cramer threw his support behind Gary Gensler, new head of the Commodities Futures Trading Commission, but admitted that Gensler's efforts to evoke change are likely to fail. He said the futures industries are simply too big and too powerful to stopped. Cramer said the futures industry will use all of the tools at their disposal, including lobbying Congress, tapping into academia and using the media to bolster their position that the futures markets are too big to be manipulated and that futures markets offer increased liquidity. But Cramer said these notions are simply wrong, and that oil, in particular, is too important to national and economic security to continue "business as usual."