CNBC "Mad Money" host Jim Cramer often showcases erratic and unpredictable behavior and the same goes sometimes for his analysis of the stock market.
While the economy continues to struggle through the recession, the forward-looking indicators known as the financial markets continue to perplex Cramer for not going up when some positive signs, also known as "green shoots" by the financial media, are starting show. According to his analysis - it's the government and a reliance on oil futures that have scared off investors.
"How did we reach this point where investors just can't be bothered to respond to clear unalloyed positives or be tempted by low, low prices of so many stocks?" Cramer said. "I think we've been worn down, I think we've been worn down by two different things - first, the government and then oil. And they're what's keeping everyone apathetic about stocks."
Cramer explained threats of taxes and regulations have made investment in the United States and uncertainty.
"The government seems to propose a tax a day to keep your profits away, and a regulation a day," Cramer said. "And it's one of those main reasons why we've been down for four straight weeks. The federal government makes us all feel like we should be investing in another country."
His solution - shut Washington down by sending everyone off to the Delaware coast and imposing a media blackout on House Speaker Nancy Pelosi.
"It makes me think we could rally as much as 500 points," Cramer said. "If everyone in Washington just went down Rehoboth or Bethany Beach for a couple of weeks ... and stop coming on TV already. If the news media would just blackout the Bolshevik Speaker of the, did it again. I mean, the Democratic Speaker of the House Nancy Pelosi, it couple be worth a couple of hundred points on the Dow too. Come on Madame Speaker, do it for the good of your country! Or, at least for the good of our portfolios."
The other impediment according to Cramer is oil. With the price of oil falling and threatening to go much lower, some investors are interpreting that as a sign the economy won't recover in the short-to-mid-term future.
"Then there's oil," Cramer said. "The market seems to think if oil's going down, then everything should go down. How dumb is that? Weren't we almost strangled by $147 oil last year? Doesn't cheaper fuel mean more money in the consumer's pocket?"
And as the "Mad Money" host explained, oil has its own supply and demand considerations besides it future contracts. He said what was being ignored is how lower energy prices could be a net positive for companies and a good reason to invest in them.
"I mean, come on, how about having more cost savings for companies that have to spend a lot on transportation or plastics," Cramer said. "How is cheaper oil bad? Everyone just keeps pretending that the price of oil is a legitimate barometer of the world's economic health, even as we know it was manipulated going up. So how could we be bothered by the decline when we know the oil futures are rigged? Taking your cue from the oil futures is like taking your cue from whether the Yankees or the Red Sox are in first place, dead heat. It's totally irrelevant to the market."




















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Cramer and Obama's arse !!
July 10, 2009 - 20:35 ET by PaarlSorry about the scatological reference but sometimes I wonder how Cramer gets his fat skull up Obama's skinny arse. Sometime in April Cramer lost all objectivity and became in a shill for Immelt and GE and the effort by GE to be a primary beneficiary of Obama's industrial policy esp in regard to alternative energy and health care infrastructure.
I have followed Cramer and he is not bad in his education of the public about the market and the opportunities. For those not familiar with the mkt and how it really operates Cramer, over the years, has pulled back the curtain and he was dead on target in March 2003 and the start of the bull run...to the day , hour and minute.
But GE has an investment in Obama and it is affecting Cramer's analysis of the economy and hence the market. There are no green shoots...just green sh-ts from all the geese. I am in the trucking biz in New Jersey and the bottom is falling out of the bottom of small and mid size industrial sectors in Newark, Elizabeth, Jersey City, Linden, Rahway, Carteret etc...the whole industrial belt in NJ. Maybe the number of newly unemployed may start to stabilize in the sense that the number will be 525,000 per week instead of 650,000 per week but the real issue is continuing unemployment. AND NOBODY THAT I KNOW IN SMALL AND MEDIUM SIZED BUSINESS IS HIRING....owners of commercial warehouse and industrial space are giving it away...just pay the real estate taxes plus 5 % or something like that.
So in the end Cramer has voided his own worth over the past 6-8 weeks by shilling for obama miseconomic policies......he better get on the straight and narrow or he is gonna be on the unemployment lines....along with Immelt who is a complete nincomppoop !!
Paarl of Rhodesia
PS Back in the truck again to earn my keep...my partners as well..
Paarl... I wish you and
July 10, 2009 - 22:04 ET by bigtimerPaarl...
I wish you and all you know the best, it will hurt us all in the long run if businesses big and small don't make it, or leave this country...no matter what the cost will be passed on to all of us...and they are just beginning.
We'd better have some fighters in 2010 so the midterms make a difference...a big difference.
Doubling down on stupid is not a particularly good idea. ~Andrew Breitbart
spin-happy
July 10, 2009 - 21:59 ET by konoUnder Dubya's watch, all the money reports on the news kept trying to explain how the market could be showing all these positive signs, even though it's still in the crapper; under Obie, they try to explain how the market could still appear to be lagging, even though everything is going great.
The old media are not reporting on the news, but trying to convince viewers/listeners/readers not to believe their eyes: The market was doing pretty well most of the time under Bush, while it's doing pretty lousy most of the time under Obama so far, and all the MSM reports are attempts to dismiss what's obvious by saying it's illusory.
Too bad propaganda isn't more nourishing and satisfying, because we seem to have no shortage of it being crammed down our throats each day by the traditional media news heads.
Pelosi's up for re-election
July 11, 2009 - 15:14 ET by RR GOPPelosi's up for re-election this year. My God, we have to hope that San Franciscans will vote her out. I wonder what it will take even them to wake the hell up?
But, I'm certainly not holding my breath.
One of the 34% who thinks George W. Bush was a great President. One of the 61% who wants to bring back the stock and pillory (yep...approval for Congress now at 39%...do you believe that!?).