Thursday, September 9, 2010
There are women (and men) who will do anything for a price. Then there is Jim Cramer who will go from hating Obama (and the impact of his policies on the market, all the while misinterpreting such impact: i.e. the brilliant “Passage of the healthcare bill means a double dip is coming“, and other such pearls), to loving the president, in the span of 40 minutes just so long as the market does not vommit for the duration of a teleprompted address. And the master of momo mediocrity may want to sit down with his “Stop Trading” friend Erin Burnett so two can clarify the official CNBC stance on Obama and his policies: Burnett: “I think the problem is you have the fastest job creation in this recovery than you have in any recession in 25 years… Technically speaking this recovery has not been tepid.” Cramer: “I can show you chapter and verse how this is the weakest post-recovery environment since World War II.” Sigh. Then again, if it makes for good theater, and the filling of some free ad slots in another Nielsen-rating impaired cable station, so much the better.
Read below for Cramer take on Obama’s speech. Or don’t – no big loss.
Obama Comes Out Swinging, by Jim Cramer
The market liked the speech. Rather odd when you consider that, to me, the speech may have been a very powerful blow against the Republicans in November. In my opinion, President Obama very effectively painted a picture of the Republicans being in the pocket of the rich. As the speech was going on, it struck me that if the Republicans don’t give in on some sort of middle ground on the expiration of the Bush tax breaks, they are not going to take back the Senate and the House.
It’s been a long time since I heard the president be this masterful. By linking himself with Bill Clinton — a man I think a lot of us in the market yearn for — he gave us some confidence that the moderate Obama could be lurking. The mention of Reagan made me feel that way, too.
Don’t get me wrong: I think it is a mistake to raise taxes in this kind of environment. But, again, Obama struck pay dirt by making it clear that the tax breaks didn’t do anything for anyone but the rich, and the economy did better in the 1990s when it wasn’t on steroids.
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I have to admit I was kind of blown away by how forceful Obama was. Given the horrid job creation — I can show you chapter and verse how this is the weakest post-recovery environment since World War II — I figured that there would be some defensive nature to what he had to say. None.
Yet there were enough pro-business sentiments, enough seeming, “You give, you will get” points to the private sector, that the speech didn’t seem like business was being bashed at all. The only targets were greedy people and Republicans.
The speech worked.
People who counted the Democrats and President Obama out in November will not be thinking that way a few weeks from now if this Obama keeps coming out swinging.
The tone-deaf Republicans have woken the sleeping orator … and for the first time in a long time, it wasn’t bad for the market.
Eye-opening. Powerful. And not anti-business. The market says, “We can live with it.” Big change, worth noting for certain.
This article was posted: Thursday, September 9, 2010 at 4:10 am