I've been reading about the so-called "Washington Hit List" in which the new administration is trying to discredit anyone criticizing Predisent Obama's policies. Okay while I understand the petty barbs between Democrats and Republicans, I was shocked to see Jim Cramer's name. First of all I have to admit I am a closet Cramer fan. I owe a couple of his books and at one point actually watched his show "Mad Money" (I still am amazed at Jim's knowledge of so many stocks and industries). It has changed in the past few years and the new style is not for my liking.
That being said Mr. Cramer has made some good points in his criticism of the administration. In Mr. Cramer's rebuttal to the "Hit List" he states:
Look at the incredible decline in the stock market, in all indices, since the inauguration of the president, with the drop accelerating when the budget plan came to light because of the massive fear and indecision the document sowed: Raising taxes on the eve of what could be a second Great Depression, destroying the profits in healthcare companies (one of the few areas still robust in the economy), tinkering with the mortgage deduction at a time when U.S. house price depreciation is behind much of the world's morass and certainly the devastation affecting our banks, and pushing an aggressive cap and trade program that could raise the price of energy for millions of people.
All this seems pretty reasonable to me. He is pretty much summing up aht every other economist / strategist not employed by the White House is saying. There is nothing out of the ordinary here. Where Mr. Cramer differs is that he talks passionately in what I call "market speak". He goes on, in "market speak" to state:
But Obama has undeniably made things worse by creating an atmosphere of fear and panic rather than an atmosphere of calm and hope. He's done it by pushing a huge amount of change at a very perilous moment, by seeking to demonize the entire banking system and by raising taxes for those making more than $250,000 at the exact time when we need them to spend and build new businesses, and by revoking deductions for funds to charity that help eliminate the excess supply of homes.
We had a banking crisis coming into this regime, but now every area is in crisis. Each day is worse than the previous one for this miserable economy and while Obama's champions cite the stimulus plan, it's really just a hodgepodge of old Democratic pork and will not create nearly as many manufacturing or service jobs as we hoped. China's stimulus plan is the model; ours is the parody.
So while his peers speak in terms of "slower growth" or "continued risk to the economy" Mr. Cramer personalizes his attack. While I have no issue with this approach it appears the White House does. Press Secretary Robert Gibbs took issue with Cramer on the Today Show and other venues last week. I simply ask to what end?
The reality is that some of the mistakes being made by this administration are the same ones we can trace back throughout history to Japan or the Great Depression. If we don't change our path I am worried that history is about to repeat itself. The warm fuzzy feeling I once had has now turned into one of uncertainty and nervousness about the direction we are going. Apparently I am not alone. The S&P just hit 680 - down 25% year to date.
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