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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And the LIBERALS, keep on spending....Damn...??
Is that who has the War Machines in their District....And give the Pentagon Carte Blanche.
Bob..skull dicker....Here's the deal dude...
That half the Nation....That you heap little praise on...Along with that idiot, moron(Morman) that ran for Prez.....IS WHAT MAKES THIS COUNTRY TICK..
Without them.....We would be nothing and still living with the Indians.....IMO.
No disrespect to the Indians...I am.
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 am sticking with it's all grand standing, the deal is already done and both sides are making the situation look so dire so they can go back to the extreme right and left and say they had no choice.
Unless the cliff is the deal....
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