NEW YORK ( TheStreet) -- The standard of living will drop if President Barack Obama's healthcare bill is passed -- or so declared Jim Cramer during Friday's Stop Trading! segment on CNBC.

"This bill would have been the greatest thing in the world when I was a reporter and didn't have healthcare," Cramer said Friday on CNBC. But, he speculated, if taxes go up on capital gains and dividends, there will be a rush to sell off stocks. "We have seen that when we have big changes in taxes it creates a sell off. It's no secret that a lot of people who own stocks will get hurt here."

At this point either taxes will go higher or health care bills will go higher, which is why Cramer believer the nation's standard of living is going lower.

In regard to the Palm ( PALM) sell off, Cramer said the company must be bought by someone, as it has decent technology.

Cramer said he thinks Nokia ( NOK - Get Report) could be a potential buyer. But Cramer said he won't recommend the stock simply because it could be the target of a takeover, as its fundamentals are strained.

-- Reported by Jeanine Poggi in New York.

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