Paul Ryan makes no difference to markets

While Romney's VP pick may be a good talking point this week, investors are still watching Europe.

By Jim Cramer Aug 13, 2012 10:49AM

Here's what I don't get about the choice of Paul Ryan. What rich person who wants his taxes lower thinks Ryan will make that much of a difference? For people voting on their tax rates, haven't they already settled on the idea of voting for Romney? Other than rich people, are any Americans willing to sacrifice Medicare when the program pays for endless best-in-the-world health care? Is there anyone other than the rich -- who can afford it anyway -- who would change his mind?

 

What Ryan gives Romney is something for people to talk about, because nobody was talking much about Romney at all lately.

 

So he's good for that.

 

But as far as the stock market is concerned, what does Paul Ryan have to do with the price-to-earnings multiple of Bristol-Myers (BMY)?

 

Nothing.

 

This week, like the past 10 weeks, will be about whether European stock markets can continue their amazing rally -- one that I believe is starting to drag U.S. markets with them. We all want to focus on bonds, because we think they are the only securities that accurately depict these economies.


But what I saw Monday was a Greece economic growth number that, while down, was not down as much as people had thought. What happens if that's the first surprise of many? Or do we really think that 10 straight weeks of climbing stock markets in Europe means nothing -- that it's just an aberration?

 

One thing is for certain: We haven't seen many numbers out of Europe, other than German employment, that have been better since the crisis began.

 


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 is long JPM.

 



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72Comments
Aug 13, 2012 1:23PM
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When I read some of the ignorant tripe that is posted here, I want to break down and cry. Many get their facts from some fool propaganda news station, some get it from their left leaning local newspaper and some just have no touch with reality. I think every student in America should be forced to pass a civics class, an economics course and a reading course before being allowed to vote. I'm not sure that some of these posters ever showed up a day in the classroom! 

 

 "Those who fail to remember history are doomed to relive it."

Aug 13, 2012 3:54PM
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Stay out of politics, Cramer.  You barely qualify as a financial pundit.  Don't push your luck.
Aug 13, 2012 1:46PM
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'It should probably come as no surprise to anyone that someone like Paul Ryan would trade on inside information gained through his position as a congressman to line his pockets, but this particular instance is especially egregious. Ryan attended a closed meeting with congressional leaders, Bush's Treasury Secretary Henry Paulson, and Federal Reserve Chairman Ben Bernanke on September 18, 2008. The purpose of the meeting was to disclose the coming economic meltdown and beg Congress to pass legislation to help collapsing banks.' 

'Instead of doing anything to help, Ryan left the meeting and on that very same day Paul Ryan sold shares of stock he owned in several troubled banks and reinvested the proceeds in Goldman Sachs, a bank that the meeting had disclosed was not in trouble. This is the guy Republicans want one heartbeat away from the presidency? He seems more than a little shady to me.'



'Have a look at Ryan's financial disclosure form for 2008--you can click on each page to enlarge them. The "Transactions" section begins on page 12--scroll through and look at all the trades Paul Ryan made on "9-18-08":
Aug 13, 2012 2:39PM
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Cramer is an idiot; always has been. How he got to be a name in the media is beyond me. Must be his crazy, wild demeanor because it sure can't be his track record.
Aug 13, 2012 1:00PM
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Cramer really doesn't get it.

At least Ryan will have started the debate over having a federal balanced budget, and the consequences of excessive government spending.

The American people are idiots if they don't understand that spending without limit will result in a day of reckoning, that will be far more painful than if we reign in spending now.

Aug 13, 2012 12:16PM
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Yes, Medicare pays for endless, best-in-the world healthcare.  That's part of the problem.  The Medicare program is going bankrupt and needs to be fixed.  Ryan is the only politician who's even talking about this issue (Dem or Repub).  The other politicians are too afraid to even talk about it, let alone propose a way to keep it from imploding.
Aug 13, 2012 3:03PM
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"Medicare when the program pays for endless best-in-the-world health care"

Why do you use "best-in-the-world" to describe our healthcare? Cite your reference, Cramer. LMGTFY. France seems to be winning, and for less money per person. Google, Cramer, Google.
Aug 13, 2012 4:01PM
Aug 13, 2012 2:41PM
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"Ryan makes no difference to markets"........And why should he at this early stage ?  Cramer, did you expect the markets to shoot up to record highs and beyond just because of Romney's VP pick ? Sounds to me like your choosing Political sides and airing them for all to see. This country is so far into the crapper, there is not one single thing, man, woman or story that will make a dramatic long term positive change to the markets or anything else. No one should expect a miracle of any kind, especially you.

If you want to do something POSITIVE for MSN cramer, tell them to block these stupid friggin "date" ad posters.

Aug 13, 2012 4:08PM
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Like it or not Romney & Paul Ryan are business people. It would be wise to build salt water to fresh water plants in dry areas like Southern California now than send money overseas for other countries health care. Solar & wind energies would drive down costs. Their is a drought and it is getting serious. I'm an American for the health of American & Americans. One country ruling or policing the world never has worked. Take care of your own backyard before pointing fingers at others.
Aug 13, 2012 3:14PM
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the title should be,"who pays attention to cramer anymore"?haven't watched him for the last two years.

jim used to be a pretty good stock man and was entertaining to watch and listen to.since he became a morning guy he has gone political and stinks.jim doesn't have it right now and probably won't as long as he's selling msnbc crapola.

regards jb   

Aug 13, 2012 12:26PM
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It would appear rather more credible if the Democrat comment-kidz assigned to Cramer's posts could at least pass the Econ 101 first-week quiz at a community college.
Aug 13, 2012 4:30PM
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Cramer,

What does this article have anything to do with the markets?  Or with politics?  Nothing.  What a stupid and utterly senseless article.

Aug 13, 2012 4:55PM
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Does anyone really believe  whether you get Romney-Ryan or Obama- Biden in the White House it will make any difference in the course of this country?  Both groups -democrat and republican- are owned by the banks along with your congress, the supreme court, the SEC, wall street  and the mainstream news media.  It's just one part of a much larger corrupt rigged system - and Bobo knows this because he's one of the bank's con men.
Aug 13, 2012 3:20PM
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Here's a deficit reduction/debt reduction plan, that really works.
fix-fiscal-america . us

 

Aug 13, 2012 2:57PM
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I love how Cramer writes an article about Ryan and the stock market and finds a way to fit a plug for BMY in here. Since he recommended it it is down a little over 10% and yet he still marches on. Poison for your wallet! Unless your shorting his positions that is...
Aug 13, 2012 2:58PM
Aug 13, 2012 2:12PM
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Isn't it so interesting Paul Ryan would ultimately like to do away with Medicare when all of our Congressman receive their full salary for life and the best healthcare money can buy. No wonder Republicans want to do away with social security which is NOT an entitlement and medicare.  After all, our elected representatives, are far too special to receive social securtiy or medicare.  Does anyone honestly think Republicans stand a chance to win this election?  Duh!!!
Aug 13, 2012 2:54PM
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This country will be over 17 Trillion in debt by the time Obama gets booted out of the WH. That's over $200,000.00 for every man, Woman and Child. That in itself will destroy US from within.
Aug 13, 2012 4:44PM
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Jim,

 

You should stick to picking stocks.  Medicare is broke.  There is no Social Security trust fund as it gets robbed by the Congress.  It is about time we have a debate in this country (adult one, not the you are a right wing nut job, or lefty socialist name calling) about the role of government and the truth about entitlements. 

 

You are entertaining and know about business, stick to that. 

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