- the huge governmental mishap and
- reasons why the market hasn't gone up.
Politicians Are a Losing Cause Posted at 2:38 p.m. EDT on Thursday, Oct. 17 Terrific, we get a reprieve from the government running out of money until Jan. 15. I feel better already. Let's face it. The deal was a total disgrace for all sides. There turned out to be no point to it whatsoever. Nothing was gained. Much was lost. We are a laughing stock globally and it takes two to create a laughing stock, or, more accurately, three: the Democrats led by our president, the old-line Republicans led by John Boehner and the Tea Party rejectionists or patriots or whatever you want to call them, nominally led by Sen. Ted Cruz, but actually led by no one. Nobody has clean hands. The rejectionists raised the cost of borrowing money for the U.S. government, perhaps permanently, in the name of lowering borrowing. I sympathize with any desire to cut taxes and cut spending, but you don't teach people a lesson by forcing them to break their word and we gave a promise to the nation's borrowers that we would make good on those bonds even if we hate doing so. The old-line Republicans demonstrated a shocking inability to lead their party, once again embracing stances that are both anti-large business and anti-small business. These guys talk a huge game about the job creators and they hail the small business people, but have they ever talked to any?
Why Isn't the Market Up More? Posted at 2:47 p.m. EDT on Wednesday, Oct. 16 Someone just asked me why the market isn't up more in the face of the debt deal that's been reached. Let me offer four reasons. First, we don't know if a deal's been reached yet. What happens if House Majority Leader Eric Cantor says he can't live with the deal and tells House Speaker John Boehner that Boehner's out if he brings the compromise to the floor? What happens if Boehner says that his conscience dictates that he has to change his mind and go against the deal? SWK) took our collective breath away and drove down many industrial companies, even as the weakness was in its security division and not in its hand tools line. Don't forget how much the government shutdown has hurt outfits like Dell ( DELL) and Cisco ( CSCO), both of which sell a huge amount of equipment to the government. Third, once we get through this morass we are going to start hearing about the Fed no longer needing to buy back a lot of bonds, in part because the main reason it didn't taper was because Chairman Ben Bernanke saw this disaster in Washington coming. The reasoning is he feared he would need the mandate to buy all the bonds that could be sold by companies that couldn't own them if the U.S. defaulted. Finally, Tuesday's sell-off snapped a four-day win streak. The market had gone up on the backs of buyers who smelled a deal even if there wasn't one initially. They were right and now they are taking profits. Business as usual. At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long CSCO.