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NEW YORK (
TheStreet) -- "I screwed up," Jim Cramer confessed on his "Mad Money" TV show Wednesday, as he admitted that he was way too bearish on what the health care reform vote would do to the stock market.
Cramer said the markets were down for only 20 minutes at Monday's opening after he had predicted a sizable selloff last week.
What went wrong? Cramer outlined 10 reasons, or misjudgments, he made about Obama's health care reforms.
1. Cramer thought the health care reforms would negatively impact earnings. Instead he said those impacts were pushed far into the future.
2. Cramer thought too many money managers were counting on the bill not passing, and thus would be caught off guard. But in the days leading up to the vote, everyone got wise to what was coming.
3. Cramer thought the market would sell off ahead of new, higher tax rates on dividends and capital gains. In actuality, those measures aren't coming until 2011, or later.
4. Cramer thought that an Obama win would reignite his pro-labor agenda. But instead, it appears Obama spent all of his political capital on health care, he said.
5. Cramer thought the budget deficit would rise causing a selloff, but it apparently hasn't reached that point.
6. Cramer said the selloff would have be buying opportunity, but the markets were just too strong.
7. Cramer said he felt new from Washington would trump everything. In reality, the market now seems used to the endless barrage of news.
8. Cramer said he didn't want to be greedy, and felt the market was due for a pause, but that pause only lasted for 20 minutes.
9. Cramer said he thought the health care bill would be worse for small business, causing a spike in unemployment. He said it turns out the 50-employee cutoff is high enough to not cause a wave of firings.
10. Cramer said he let the news and media hype interfere with what was most important, analyzing the fundamentals of the companies he follows.
For all of these reasons, Cramer said he let down his viewers, and vowed not to be swayed by the negativity in the future.
