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Jim Cramer: Would the Market Closing Help Calm the Volatility?

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Video Duration:
1:49

Jim Cramer weighs in on whether or not the market should close.

He also wrote a late night column on his thoughts

"As we stare into still one more futures abyss, at what point do we simply say, okay, this period doesn't count? At what point do we look at balance sheets and say we should pick these stocks or avoid those stocks because they can't withstand a prolonged downturn? I want to explore a concept that I have been loath to consider because I think it is always vital to keep the markets open," wrote Cramer. "Consider this, though. Our markets used to be the place where companies, both new and used, so to speak, can raise capital. It's been since the Great Recession that we have seen many underwritings of already public companies although we have seen insider selling secondaries from time to time."

Watch the full video above for more.

Video Transcript: 

Katherine Ross:
Let's talk about closures, because there are a lot of rumors floating around that the market should close for a vacation. You actually wrote about this for your Real Money column late last night, but with the Fed's actions seemingly ineffective, would this help calm the volatility?

Jim Cramer:
Well, what I was hoping was to be able to get it so that we got to where we're going to obviously go. I think that we could, for instance, every day we could go down, but say we go down 20% every single day. Well, I mean, I think that that's a colossal failure of imagination by all of us, because the companies are going down because people need their money, but we live in a Twitter world. I re-posted something that David wrote, which is that maybe we should have ... David Faber, maybe we should have this holiday. Immediately, [inaudible 00:05:22], "Oh, so you hate the people who are on fixed income and need the money. You despise the people who are not as rich as you."

Jim Cramer:
What it says is that, okay, okay, I am trying to come up with something that says that people should lose less money than they are, and that perhaps the way that I suggest in my Real Money column would believe it so that the most people would lose the least. That's my goal. My goal is not to disenfranchise anyone. My goal is to make it so that we have a common sensible way to get people out who need the money, and yet we don't wipe out whole companies, because there's a lot of selling. What we learned in 2007, there's a lot of great lessons, what we learned in 2007 was that when stocks really go down, the institutions themselves get called into question. Let's take the company, I always find it's much better to actually think about companies, let's take a company like Macy's. Okay, so Macy's is at $6. Then if you're a creditor to Macy's, what you're saying is, "Wow, that stock is down at $6. I don't know if I want to advance them any credit so they can buy their merchandise."

Jim Cramer:
Then it becomes very self fulfilling. It ends up that the stock market is the reason why Macy's is in trouble and not vice versa. Now you can say the stock market's very...but I also think that the stock market is a cruel mistress. Carnival Cruises is at 15, okay? I don't know how Carnival Cruise stays in business. I don't, because they provide a service that's no longer needed or is even suspect. What will matter is the stock's down so much it'll just hasten that. I don't know whether it should be hastened. I mean, maybe it should be that they get a little more time before they go under, but I don't want the stock market to be dictating our economy. I want the economy to be dictating the stock market, which is why I wrote that piece about how it's a shame that we don't have this hiatus, because the hiatus may be better, but the people who say, "Listen, we need our money. You're being punitive," you can't win. You can't win.

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