What now? Wait out the politics

Until stocks fall to the point where the anarchy in Washington is fully discounted, we just have to presume prices are too high.

By Jim Cramer Aug 19, 2011 9:11AM

jim cramerthe streetI was soul searching all day about whether the people in Washington, D.C., just have no idea what makes business tick or actually just don't care for business.

I say this because the disastrous NetApp (NTAP) call wasn't about low taxes -- what some people in Washington believe is the panacea -- it was about rancor and ugliness and the loss of confidence in our country.


I keep thinking back to a moment when I was on "Meet the Press" just a couple of weeks ago and said this brinkmanship could actually hurt orders, hurt business. I was hearing it anecdotally from execs.


It's no longer anecdotal. Now it is empirical.


Some companies can dodge it. I think Salesforce.com (CRM) did it. Yeah, it was that good of a quarter. And I think Apple (AAPL) can do it.

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But most others have to come down to the point where if they did get hurt by the wrangling, it is in the stock, and if they didn't, well, the stock can fly.


Until we are where the Washington anarchy is discounted -- and after watching stocks go down Thursday, which had nothing to do with Europe, I know we aren't there -- we just have to presume numbers are too high and just wait it out with yield protection or stocks that are so low that they just might not go down any more if cuts are on the horizon. These might fly if we just get in-line numbers on the next quarter.


That's how to position yourself after what we saw Thursday.


At the time of publication, Cramer held a position in AAPL.


Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network’s sites.


Follow Cramer's trades for his Charitable Trust.

Aug 19, 2011 11:50AM

this guy's immature antics and bad advice on cnbc in the morning is a disgrace


maybe he went for the 28 year old nurse

Aug 19, 2011 4:45PM
CNBC has turned into a political hack side-show by some anchors. Kiernan and clowns talk all morning about irrelevant issues that serious investors must find intolerable. Politicians and some cable shows like cnbc refuse to talk about serious investment topics. Tune these clowns off and replace with serious people who want to help solve the problems we have as a nation.
- it was about rancor and ugliness and the loss of confidence in our country.
   confidence -- that is a joke it's the fact that half the work force makes less than $26,500 a year. 

I would love to see Cramer live on $26,500 before taxes a year and see how the other half lives.

After income and S.S. taxes I would be willing to bet that he would not even have enough money to pay the taxes on his house much less the water, electrical, maintance, gas bills the house generates each year above and beyond the mortgage and taxes due. 

Let Cramer try to buy a house making less than $26,500 a year. Say let's see what he would do making minimum wage working 30 hours a week so the company doesn't have to give him benefits like health care etc. 

gee people don't  you get it the super rich in this country have squeezed all the life out of our lives. And they complain that while they are making $250,000,000 a year that they can not hire an American for 25 cents an hour like they can in China. 

The US and the rest of the west is locked into a Death Spiral of lost jobs and an ever weaker and weaker economy. 

all the lipstick in the Obama admin and Federal Reserve can not make this loser pig of an economy look like it has four legs to stand on.

It's all about the jobs and the wages people are making. It's not enough to keep things in balance we are doomed to fail.

Aug 19, 2011 3:36PM
Cramer,  if  you  think  the  best  &  brightest  on  Wall  Street  are  so  darned  smart,  why  aren't  the  likes  of  you  saving  the  world's  economy ????
Aug 19, 2011 4:19PM

   We need a 1/2% charge on all derivatives, stock and commodities trades. This would put us in surplus and affect mostly giant day traders and market manipulators.

   Banks, wall street, insurance companies hedge funds and the commodities exchange produce nothing and they are wrecking our economy. Our 4 biggest banks have 8 trillion in assets and have been getting billions in 0% loans to play the market. These groups are fundamentally leeches and they are corrupt to the bone.

   When the government guarantees a loan and a bank collects 500k or more for a 200 k house that is insanity. All such loans should be made directly for a small interest. This would cut student and home buyer's notes by half or more and leave trillions in the hands of our people instead of thieving banks.

   America will never be a great nation until we have a government and a financial system that serves instead of rapes.

What is weighing on the market is the fact that 1 percent of the population of the US owns 30 percent of the wealth and the top 25 percent own 75 percent of the wealth. And the bottom half owes the top 1 percent all their pay checks going into the future forever and forever.

This whole system is out of balance and is getting more and more out of balance until it collapses in a couple of months.
Aug 19, 2011 6:41PM

I gota level with you people about whats going on; and tell you what you may, or may not know. The system is built on Debt! The only way the Country Functions now is on DEBT PERIOD! If you don't go out and pay high prices for items; you don't go out and take on debt. You are considered Strange.
** The True American Revolution Started 2years ago*** When Gold and Silver were cheap. You see on youtube there were people made videos and discussed about the coming collapse.


3G'S is the model of one of the guys; GOD GUNS GOLD AND SILVER No Debt=  Truth Life and the American Way is the model. It has paid handsomely; but what is truly best in LIFE?


You see these clowns on here are majorly invested in Paper DEBT; The thing you call money is just a promise to pay a debt... Read the Paper Moron!  The Confidence is lost and when the Sheep pour in they will be paying for 600 Silver and 12000 Gold.... Mark my words...



Youtube Silver and Gold Community; where whos in the know! Knows whats going on... Look us up anytime...

Aug 19, 2011 4:17PM

Jimmy, between Washington and flash reporting , markets will become like you scisofrinic , addicits

,little rats that ate to much loco weed. Hey I know you have to make a buck ,and its ovious you have a horn blowing fetish . The media seems to be pipe piping , but Jimmy according to net worth you've got 100million   would not cramerica be better off if you had another gig ,    Jimmy leading the new world finance system      , just babbling   people   ,.,.,  go jimmy go   , wave that flag , rant and rave,.,.,............

Aug 19, 2011 7:01PM
Smile If people stop buying junk and conserve their resources than no company will be immune.  It's very hard for the average individual to understanding any of this. They're just totally blown away that we have all these people in DC maiking so much money and we're so screwed up.  I understand it and I'm just amazed that no one saw it coming.
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