Fonzi vs Clint
If they don’t compromise, we are sunk.
Right now I would say the next 1,000 to 2,000 Dow points rest on these curious visions of the future.
Let me explain.
First, there's some amorphous talk out there that the president, in his second term, will become more hospitable to big business, to the trigger pullers, to the corporations that have not had his ear. The idea is that there are enough companies out there that want to break bread with the president and there's enough give to the president in his second term that a new rapport, a new friendship, is about to break out.
Somehow, that Happy Days skein of thought is in the ether, and I have to tell you I don't understand it at all. Why does Obama have to compromise? What did he do to have to make peace or break bread with anyone? He won this victory by appealing solely to his constituency, which is growing much faster than the Republicans' constituency. I see him going the opposite. Big business doesn't want to play ball with him? To heck with them. Banks and bankers gave tens of millions of dollars to defeat him? Forget about them. Bury them.
I saw nothing in this election that would make the relationship with business cozier. In fact, I think quite the opposite. Things are going to get chillier because he believes they aren't going to hire no matter what he does, or at least hire here.
The idea that he is suddenly going to make nice with the potential big hirers, the oil and gas and refining and chemicals businesses, because energy is so cheap? Good luck with that. The companies and leaders in those industries tried to bury him. They did everything they could to crush him. Now he is supposed to be magnanimous? Why? Would you be? I sure wouldn't be. Because of legacy? What's the legacy of the fossil-fuel gang in a Green Presidency.
The bankers and the oilmen were the big losers Tuesday night, and the stocks reflected it Wednesday. They can recover because they did well before when he disliked them and they will do well now when he dislikes them. But they won't ever have a friend in this White House.
Don't believe me? Consider this. In the first Obama campaign he received tens of millions of dollars from bankers and businesspeople, and he did little to help them. Then they turn on him, and now he's supposed to help them?
The president will not get you 1,000 or 2,000 more points on the Dow because of some new attitude. That attitude doesn't exist. Stop your dreaming.
Now the other side is more intriguing and more important. There's a battle for the soul of the Republican Party, and it is made up of people who fear losing their seats in Washington, D.C., verses the true believers, the guys who holed up with the Outlaw Josey Wales at the beginning of that fabulous movie. These are people who refuse to surrender when the War Between the States was over, because they never accepted that it was a lost cause and intended to fight on no matter what.
Call these people the Tea Partiers. They have no sense of self-preservation, because it doesn't intrigue them. What matters is the cause or causes.
I think the leadership of the GOP, whoever that might be right now -- let's call it John Boehner, because he's trying to lead -- is worried about losing in 2014. Boehner seems worried about not even being speaker. You have to figure that he and the party minions have figured out that if they can't sweep when unemployment is almost 8% they aren't ever going to sweep. The idea of throwing us into another recession where unemployment goes to 9% isn't necessarily a winning strategy if it didn't work at 8%.
So rational people would argue that you have to eliminate the Outlaw Josey Wales factors. I say factors because some of them have to do with social issues, which lost the votes of women. I don't know if the GOP can ever stop single-issue candidacies.
But the major Outlaw Josey Wales factor has to be dealt with, which is the perception that no matter what, rich people must not pay more taxes. That tenet, I believe, made it almost impossible for anyone who doesn't make a lot of money to vote GOP.
Put simply, the Tea Party was perceived as class warriors, not the Democrats. They were perceived as warriors carrying the plutocracy banner. The presidential candidate didn't help because I think the vast majority of people, including the considerable number who pay little or no federal income tax, can't believe that he paid little or no federal income tax.
These people are lost to the GOP. They went Democratic.
So here's what all of this comes down to. Does the GOP leadership realize that running on the principle that the rich should never have to pay more taxes is a LOSER? Does the leadership recognize that 90% of the country is being sacrificed for the right of the 10% to pay less?
Forget ideology. Forget what the government does with the money. Forget the bloated budget. Accept that without compromise we will fall over the fiscal cliff and back into recession and it will be man-made because the losing party didn't adjust.
No one is going to blame the winning party for not adjusting. It won, for heaven's sake.
The losers have to adjust. If they cast out the Josey-Wales lost-causers and stop defending the 10%, particularly the 1% that funded so much of their campaigns, then we go higher, much higher.
If they don't compromise we are sunk. The next 1,000 to 2,000 is down until we readjust to a worse economic world where we can't be the engine and China can't be the engine and Europe just splinters and falls apart.
That's why, reluctantly, I can write 1,000 words on politics, and not stocks, and actually have it matter!
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.
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I just don't understand why anyone believes that by taxing the 1% it will solve our deficit and financial problems. Again the middle class will bear the burden through high taxes, higher costs for products, healthcare, and energy. The next 4 years should pretty much kill what is left of the middle class. The wealthy and politicians will have plenty of money to take care of themselves. The middle class will be gone and unable to pay for the entitlement class and we can join the ranks of Greece, Spain and most of Europe.
We are screwed pure and simple the repubs have to agree to higher taxes They lost the election
there is no upside to this election
As bad as it may be there will be no compromise. Mr. Obama believes compromise means doing things his way and the republicans are stuck on the belief that tax policy is stunting business. The truth is clearly somewhere else, looking at balance sheets most businesses have surplus cash for investment but are not investing. If they are making solid profits with the current tax situation, one might assume its not the regulations that are affecting them.
No one wants to expand because they don't need to, as long as they have a product that is making money and new products on line to come out why invest in new plant?
It is going to be a long cold winter.
We are headed full speed into a downgrade and the market will be tanking soon. If you are a real cowboy, and want to throw caution, and your money, to the wind...be sure you have lots of antacids near by.
I am always mystified by the educated and wealthy Obama supporter. Then it was explained to me that since they have already climbed the ladder of success, they just want to pull it up so others cannot join them at the top.
What Obama needs to do is put things out in the open. If the GOP refuses to compromise again, he needs to tell the public what they're doing.
The DEMS need to at least propose a budget, or propose raising taxes, and let the GOP fillibuster themselves out of a job.
The GOP stonewalled the last 4 years, and now they say Obama needs to reach across the aisle??? WTF????
Eat crow GOP, you lost.
How about Obama and other spenders doing a little compromise ?
He's had his way for years. Talk about extremism, Obama way or the highway.
Cramer is a psuedo intellectual BS'er. Plainly speaking, the Republicans DIDN'T get out their base - Romney received less votes than McCain did. Also too many people are expecting the government to give them something and Obama wins hands down in who is more likely to do that. I love these lines... " Forget ideology. Forget what the government does with the money. "
THAT'S THE WHOLE FREAKING POINT OF EVERYTHING !!!
"No one is going to blame the winning party for not adjusting. It won for heavens sake. The losers have to adjust "
SO MR. CRAMER... COMPROMISE IS ONLY FOR THE REPUBLICAN PARTY TO DO ??
Where is the talk of fiscal sanity from the Democrats - who among them is warning of the catastrophe that awaits the United States if these deficits are not brought under control ??
Frankly, if Obama and the left got whatever they wanted from the "rich", as far as an increase in taxes go, they would spend it on some program and not for deficit reduction. WE ARE SUNK CRAMER... AND IT WON'T BE BECAUSE THE REPUBLICANS DON'T COMPROMISE. DO YOU SEE THOSE NICE PICTURES FROM GREECE - THEY'RE COMING TO THE US SOON !!!!!
He won by a narrow margin in the popular vote; so clearly his agenda is not supported by close to half of all voters.
Hopefully it won't be too late for us to dig out of his spending hole in 4 years.
The balance of power is relativly unchanged and the status quo remains. Compromise is a 2- way street.
While the Rebublican controled house has passed several budget actions that yielded to the Democratic position in some way, the Democratic Senate has passed NOTHING, and adopted an our way or no way stance on legislation sent from the House.
Pehaps the Democrats need to learn the meaning of the word 'compromise'.
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