A show about nothing

Why should now be any different?

By Jim Cramer Jul 9, 2012 2:36PM

Nothing like taking a week off and then realizing that all that has happened is the stock market went higher in the face of nothing news flow from Europe as well as, in the end, America.

 

I say "nothing" news flow because our own Doug Kass has pretty much laid out the banking program as a sham in another article, and the plummeting Spanish 10-year plus the collapsing euro pretty much verifies that analysis.

 

What a downer, considering how there was so much hoopla about the European and Chinese rate cuts and the emergency banking measures that were, alas, nothing more than the usual give and take in which the Germans give and then take away. One day the rest of Europe will rise up against Germany with the hope of Britain and the U.S. leading the way.

 

Whoops, that's 1941 talking. There are no such plans now, nor could there be, because while we still may be bastions of democracy, we are no longer financial arsenals of democracy.

 

Of course, though, the big change is that stocks went up anyway for most of the week, no doubt because they were supposed to go down -- and when they didn't, the bears covered. That's the standard excuse, but it will have to do, because there will be nothing in earnings and there was nothing in the employment number that truly made anyone want to buy anything.

 

The sell-off Friday obviously wasn't strong enough, and now we have to pay the price again of European dithering, colored by a prejudgment that Alcoa (AA) will be awful again. Funny, Alcoa wasn't even awful last time, but things have gotten worse for aluminum, so the company would have to have fired everyone and still sold as much aluminum as last quarter to really blow the numbers away. Given the labor intensity of making aluminum, I don't think that's doable.

 

So now we wait to give up points in industrials, financials, oils and techs and have them transferred again to utilities, packaged goods and health care for the next round of earnings disappointments.

 

Wish it weren't so clichéd. But in reality, this market has been clichéd for two years because of Europe. So why should now be any different?

 

Random musings: What will Motorola (MMI) mean for Google (GOOG)? Good piece by Anton Wahlman about just that. Doesn't sound good to me.

 


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 the stocks mentioned.

 



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11Comments
Jul 9, 2012 4:27PM
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THe Germans work hard, smart, do not overspend, do not overpay their coporate officers and leaders, have resonable expectations on their return on their investments (instead of taking higher risk investments) and save money for a rainy day and for retirement.  And all they get for this is a bunch of loser nations giving them crap because they are not wreckless like they are....so give us some of your wealth.  Wish America was more like Germany then I wouldn't fear so much for my 18 and 20 year old children.  They are screwed thanks to America's political and corporate leaders!
Jul 9, 2012 3:28PM
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Do people actually still listen to this guy? Just another wall street scam artist.
Jul 9, 2012 3:44PM
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German bankers conquered Europe without firing a shot.   That's 2012 talking...
Jul 9, 2012 4:44PM
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What do you think about this - most of these countries can (and maybe should) simply bankrupt - without debt payments they should be able to maintain some budget and this will make their governments more responsible the hard way. The financial industry gave loans without thinking that somebody will have to pay them - basically taking risks they shouldn't have to. Now they fret that they can lose it all and try to figure out a way for somebody to pay it. Here we handle it by printing money and socializing the cost but since the European Central Bank is not allowed to (yet) they try Germany and the rest of the northern european countries. 
Jul 9, 2012 4:58PM
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Why don't the banks just get it over with and collapse this global financial house of cards they've created?  Fractional reserve  banking (with interest applied to it) was engineered to fail.  So let it fail so I don't have read anymore of this crap from Bobo.
Jul 9, 2012 7:58PM
Jul 9, 2012 6:59PM
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but Cramer, i missed you when you were gone.  The lack of comedy and idiotic financial advice where nowhere to be found. 

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