From hope to hopeless on budget talks
We have to determine where the market can find firm support on a definite lack of real negotiation.
It's going to get old real soon. That's how I am starting to feel about this Washington situation. If neither side is choosing to negotiate in earnest on the fiscal cliff issues, then the market will have to reach a level where everyone has figured out there will be no earnest negotiation, and they aren't selling regardless.
Last week seemed incredibly confusing. On the one hand, there was plenty of talk about how a deal could be reached. I keep thinking about that comment from Goldman Sachs (GS) CEO Lloyd Blankfein in particular -- the one that said the sides were real close. How could he say that if it weren't at all true? Wasn't it based on something? How about all of those CEOs? Don't they make any difference? We thought they did last week.
On the other hand we have the perception that, if Washington was near a deal, something critical broke down -- because the positions got further apart over the weekend.
What happened in those intervening days, when the business leaders were hopeful and when President Obama went to the Pennsylvania toy factory? Did Treasury Secretary Timothy Geithner misjudge things and play too much hardball?
- Also see: 'Mad Money' recap: reasons to worry
I am thinking like this because it is highly unusual to see a situation go from hope to no hope in three days without anything really changing.
I have to tell you that, behind the scenes, the presidents' people are very certain that there will be a deal -- so certain that it's a bit daunting. Maybe that's what the business leaders were imbibing.
To me, the important thing is how quickly the complete transformation was made. This went from last Wednesday's happy belief that a deal will be struck, to a harder line by both sides Friday, to a total collapse by Monday. That last stage was on the heels of a Republican offer that someone would put out only if they wanted to end talks. Sure, I am certain some people thought Monday's Republican gambit had some substance, but to me it was more of the same.
Get that "total collapse" offer into the market. Figure out where there is no hope -- and then the market will have some firmer footing, which is certainly lacking right now.
Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and has no positions in stocks mentioned.
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Treasury Secretary Timothy Geithner need to withhold payment of congressional salaries, health benefits, cafeteria eating credits, and all other perks congress receives to have congress get serious about the problems facing the nation. Payments should be resumed only AFTER a resolution is found for the fiscal cliff!!???
WE ARE HOPELESSLY UNREPRESENTED
The members of the Congress have totally failed to represent the wishes of the American people long ago. They are nothing but a special interest group out to get all they can for themselves.
Without a major change in attitude - "WE THE PEOPLE" - should take our country back by removing every incumbent that is trying to regain their seat in the congress.
SHAME ON YOU- YOU DO NOT REPRESENT ME IN ANY WAY AT ALL
Does anyone recognize that the "fiscal cliff" represents $500B "savings" per year over 10 years.
This means we bring our deficit from (depending on which figure you believe) $1.35T to $850B per year? So in 10 years, even with this "unimaginable" cliff, we will still rack up $8T MORE debt.
I am sure they will compromise at some point. Obama's "plan" is to raise taxes $1.6T over 10 years. The GOP "plan" is to cut spending and raise revenue $2.2T over 10 years. Both plans lead to downgrades and default in 10 years.
Where is a "real" plan to balance the budget, ever?
bestest possible solution: thru the eyes of nancy ivelostmyfakeasssmile pelosi; GIVE OH'bomination UNILATERAL CONTROL TO RAISE DEBT CEILING!
remember now........you da mudderuckers who voted in this garbage!
I hope the Republicans stick to their guns - Detroit, as are other cities are broke, and have declared bankruptcy...what amazes me is the pushing forward of these entitlment programs that bring our ruin closer by the day. Stay the course conservatives - lets take the pain now. Oh and send out additional "flamers" for Greece and the European contintent to get their acts' together....what a joke!!
Romney was CORRECT!! Almost half of this great Nation are gold-bricks that want the checks to keep arriving in the mail. Good Lord - four more years; wonder if we will survive it.
Cramer is a liberal hack.....
I stated last night to friends that the ****s in DC will implement an 'emergence extension' on into next year until they can come to terms. More can kick-age.
From Hope to Hopeless............that's OBAMA's AGENDA
He is up to destroy America..........as Rev. Wright preached him to do!
A Revolution is coming.................
Miracles start at home. First of all, Congress should not pass any laws that are not also applicable to them. Congress entitlements should be on the table too to reduce the deficit. To begin with, let's cut spending by removing some of their outrageous entitlements like full pension after only serving five years and their tax payer subsidized health insurance. They should all contribute to and get their pension from Social Security after the age of 65, like everybody else. As for Health care, they should all be placed under Obamacare.
So V.L. a business is not to even think about making money it should lose money as long as it doesn't hurt employees? If that is the mindset we are about to take on,Lord help us.Most of the small business owners I talk to are more worried about regulations,and the costs that go with them.Mortgages probably aren't going out like we would like because of stiffer rules-Remember Dodd-Frank we don't want to revisit the late 90's and early 2000's do we? Or would you relax them in an attempt to spur Housing.
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Some ETF investors are worried that the unrest will cause economic damage.
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