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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsUnusual for persistent bull Cramer to have such an opinion.
'INVESTING
Dont get too optimistic Cramer says Wall Street records dont reflect Main Street struggles
PUBLISHED THU, AUG 20 202012:03 PM EDTUPDATED THU, AUG 20 20204:08 PM EDT
Kevin Stankiewicz
POINTS
CNBCs Jim Cramer said there is more pain in the U.S. economy than what is reflected in the stock markets robust recovery from coronavirus-era lows.
Im thinking, wait a second, dont get too optimistic. I think its our nature to be optimistic, Cramer said on Squawk on the Street.
We like the fact that the market is going higher because our viewers own stocks. But right now we seem gassed, the Mad Money host said.
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VIDEO04:07
Jim Cramer on the latest unemployment data, stimulus and small business struggles
CNBCs Jim Cramer said Thursday that there is more pain in the U.S. economy than what is reflected in the stock markets robust recovery from coronavirus-era lows.
Im thinking, wait a second, dont get too optimistic. I think its our nature to be optimistic, Cramer said on Squawk on the Street. We like the fact that the market is going higher because our viewers own stocks. But right now we seem gassed.
Cramers comments follow initial jobless claims for last week checking in at 1.106 million, higher than economists had expected. It marked an increase from the prior weeks total of 971,000, which was the first time in 21 weeks that initial claims were under 1 million.
Are these numbers worrisome? Well yes, if you dont get a stimulus package and yes, if you dont get a vaccine, Cramer said on Squawk Box. I think be prepared for more of these numbers.
The stock market has experienced a sharp rebound from its pandemic-induced sell-off, with the S&P 500 on Wednesday notching another intraday high. And some corporate giants, such as Target, have reported strong quarterly earnings.
But neither paint an accurate picture of what is happening in the economy, particularly with small businesses, said Cramer, owner of a Brooklyn, New York, restaurant.
I think this is the two economies. The V-shaped recovery in stocks is not the V-shaped recovery in the economy, the Mad Money host said. You may be joyous about Target, and terrific numbers that we got from Lowes. But this is the real world; real world not so hot.
Cramer suggested there has not been a large enough reckoning with how persistent the coronavirus remains and the economic consequences associated with the health crisis. We are right now beginning to realize that the pandemic has recessionary impact that we hadnt thought about.
Hes implored Washington lawmakers and White House officials, who remain gridlocked on another round of relief legislation, to provide adequate support.
Thats why Ive said over and over again to both sides, Look youve got to make this so its open-ended, he said. Youve got to make it so we have something that gets us to the vaccine. No one wants to relate directly why we have this problem. Its not because of a slowdown. Its because of Covid-19.
I absolutely understand the budget deficit and you can talk about the budget deficit forever, Cramer added. Im talking the republic, the society, because theres so many people, 15 million in the restaurant business alone, these people cannot have jobs but theyre not going to go become carpenters. - CNBC
mobeau69
(11,171 posts)empedocles
(15,751 posts)[Have the contrary bent here to, - but not now. Markets have been auspiciously quiet lately]
marble falls
(57,623 posts)durablend
(7,469 posts)"I absolutely understand the budget deficit and you can talk about the budget deficit forever, Cramer added. Im talking the republic, the society, because theres so many people, 15 million in the restaurant business alone, these people cannot have jobs but theyre not going to go become carpenters. - CNBC"
MAGAts claim people need to suck it up and apply to multiple fast food restaurants/supermarkets and GET BACK TO WORK
HotTeaBag
(1,206 posts)That is, he's not talking to Trump's usual MAGA hat wearing base, he's talking to people who are investors as well as to Republicans in Congress.
If enough pressure is put on Republicans from above (the donors that own them), things will get done. If people don't have money to buy the things they sell and pay to live in the real estate they own, that hurts their bottom line and they don't like that sort of thing.
I think this coming from him as opposed to actual economists makes a difference, so I'm glad that he said what he said.
empedocles
(15,751 posts)TheBlackAdder
(28,262 posts).
I don't trust Cramer as far as I could throw him.
By the time he recommends something, the wealthy are already positioned to take the plebeian money.
.