Earnings trump debt rhetoric
Tune out the president's scare tactics and instead focus on earnings season.
Interest rates skyrocketing? Mortgage costs going through the roof? Can't afford to send your kid to college? Did the president really imply last night that all of these horrors await us if we don't pass a debt ceiling deal, we default and the ratings agencies downgrade us?
Actually, he didn't imply it, he straight out said it. Now, we don't know what will actually happen to the dollar or interest rates if -- and now likely when -- we don't pass the new ceiling. But whatever happens will be short-lived, and I was pretty shocked that the president went so "scare tactic" on this issue last night.
Sure, rates could go up a bit and the dollar go down a tad, but I simply don't regard this issue as anything other than one more we will muddle through like we have all of the other times since 1776.
One has to wonder, however: Did the president do this to have the market plummet? Did he give his speech to create enough fear out there that people will sell everything and then he can go to Congress and say, "Come on, this is what the Republicans have done here, and they will do more of it unless we get an agreement"?
If that's the case -- and it sure feels that way, ever since that ridiculous "deal by when Asian markets open or else" talk last week -- all I can say is the president did it at a lousy time: earnings season. Right now, earnings are trumping any of this ridiculous rhetoric and scaremongering.
Stay the course.
Tune it out.
It isn't worth trading on.
Follow Cramer's trades for his Charitable Trust.
we're in a replay of the great depression. things will be weird for the next decade. for fast cash - do whatever you want. for future planning, pay off your house and keep extra cash safe.
the downside today is we're not focused on any sort of jobs program. the great depression saw WWII as a stimulus program. unless we want to start WWIII we'll not see any stimulus that way.
what "jobs" program will usa start next seeing how we sent most all our jobs overseas. casino chips?
The debt ceiling in itself is probably unconstitutional. Read Section 4of the 14th Amendment:
Section 4. The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.
If Congress passed the legislation to spend the money, then it would be unconstitutional not to fund it...period. Both Congress and the President could be impeached if the legislation calls for payment and the bills aren't paid since they both take an oath to uphold and defend the Constitution.
We should just stop this nonsense about paying our bills and let the voters decide in 2012 which party has the vision to get this country out of the mess caused by the party that took a budget surplus and turned it into out of control deficits.
Gotta Love Cramer's advice folks... I still remember him telling his viewers days before the crash..."BUY BEAR STEARNS!!" BAHAHA!!! Great advice Jimbo! Funny you should criticize the president for timing now (Nope, we haven't forgotten that one yet).
You say it 'feels' like the president is fear mongering...well we have seen how your 'feelings' have played out before. Save it buddy, you have no more of the little credibility you once had. Wish I had a sound effect for that one...Whah Whah!!! HA!
You should just stick to gambling with with other people's paper and stay out of substantive issues that actually matter. You traitors...oops...traders are a different breed all together.
Raising the debt ceiling sounds to me like getting more in the whole. We probably need to so we can survive...
But lets pay off the debt! That should be a no brainer!
And the sooner the better. It will ruin us if we dont!
Does he think we are ALL idiots. It sounds like he has his own interests in mind!
The Republicans have been fooling America for so long that they have tipped the scale now.
It is scary that they are not fearful anymore about their jobs etc. They just think we are all a
bunch of dummies.
Lets see. Lets take away money from the handicapped, and the elderly but lets not get rid of loopholes for the 2% wealthy who will still make more money than the rest of us.And talk about
scare tactics. It will NOT hurt jobs to take away loopholes!
Why would anyone support that? Actually most Americans dont! We just need to take a stand
and let the people who care about the average person stand up to be counted. Lets not let people like Crammer manipulate us!
So, the Republicans whine that eliminating the Bush Tax cuts that Obama extended for 2 years because he had to appease the party of NO... is also called a Tax INCREASE... (take away their money = tax increase).
So, is cutting money from SS and other programs that the low income class needs not a tax increase?
Take money away from the rich = Tax Increase
Take money away from the non rich = Spending Cuts.
Republicans don't do Tax Increases. That explains why they think they way they do.
And Trickle down economics? Yeah. Give a CEO a 10 millon dollar bonus and what does he do with it? Invests it to make 20 millon dollars, pays a flat 15% tax rate on Capital gains (a subsidy that the RICH get) and creates how many jobs?
Probably one. They have to hire another wall street trader to manage his account and transactions. Job creation to the max.
Give 10 millon dollars to 4000 low / middle income class families? They will spend FAR more of it for goods/services because that is what they rely on to live.
Here is trickle down economics in the Corporate World.
Give BOA billions in TARP money because they are too big to fail. QE2 and other "stimulus" packages that were supposed to open up lending to Small Business. BOA pays their CEO, other executives and "top tier" managers 4,400,000,000 in bonuses last year (4.4 BILLION). BOA hoards the cash and puts it into investments to return profits so they can increase their dividends and bonuses. BOA pays 0.01% interest on savings accounts to the non wealthy account holders.
Yup, trickle down at its best. Gotta run. My interest is due on my business savings account today. Gotta run spend my whopping $.03 in interest and try to create a job.
Tell me, WHERE ARE THE JOBS? They're still getting their handouts from the government, BUT THEY'RE KEEPING IT IN THEIR POCKETS to buy YACHTS and HOMES and nice NEW CARS with.
But they'd rather KEEP THEIR HANDOUTS and put all of this on the backs of veterans who FOUGHT AND DIED for this country, and seniors who have ALREADY WORKED THEIR BUTTS OFF.
JRJ1122 you said: "so all you people complain about the rich getting more breaks, well keep dreaming they pay more in one tax year than most will pay in 5-10, also by the rich, top 5% of the nation, having more money they are able to spend more on services/goods which will allow businesses to make more money and therefore afford more jobs to be created thus allowing more people to make more money. Its the trickle down effect people"
You know you hear this kind of crap all the time, but how do you explain 5% of the people spending more on service and goods? They eat more? The Mercedes that isn't built here? The trips they take to Europe? The million dollar home, how does that spur jobs? That logic is a bunch of crap. I'm middle class, and some of those millionaires probably pay the same taxes I do. What jobs are we getting from Big Oil with 13 billion in tax breaks? New Bank jobs anywhere from bail outs? How about new automotive jobs? New jobs in the steel industry? I'm clueless to understand where these new jobs are that the tax breaks created.
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