Jim Cramer Says COVID Economic Impact 'Hasn't Hit Yet'

Jim Cramer has some concerns about August as economy continues to reel from the coronavirus pandemic.
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Could it get worse from here?

Jim Cramer said that we might be seeing a bumpy August.

He detailed his thoughts in a Real Money column Tuesday morning.

In fact, his opening graf is pretty stark, "It hasn't hit us yet. The pandemic has not, as a nation, been nearly as upended as we thought it would have when we saw the depths of the horror in April. Most companies did not foresee that May would be better and that June turned out to be a pretty good month."

So, how has Cramer come to this conclusion?

"First, when the $600 additional benefits, meant to actually keep you at home rather than work and spread COVID, goes away, you will see a contraction in consumer spending much larger than bricks-and-mortar retail is ready for. A $1,200 check helps, but helps who? Robinhood traders? I would say Walmart (WMT) , Target (TGT) , Costco (COST) , Home Depot (HD) and, of course Amazon (AMZN)."

And Cramer isn't alone in his concerns. Trend Playbook notes that the current environment shares more than one unfortunate similarity with 1929. 

Senate Republicans unveiled their $1 trillion virus aid package that would include cutting the current federal $600 weekly unemployment supplement down to $200 a week and send $1,200 payments to most Americans.

Democrats, on the other hand, are pushing for a $3.5 trillion plan that includes money for schools and local governments.

Cramer further explains his thoughts in the video above.

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

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