A New, Pro-Business Obama?
"We got the ultimate confirmation that we are seeing a new and improved, more pro-business President Obama," said Cramer, explaining that the markets used to sell-off whenever the president spoke. "The new happy warrior Obama, though, has learned how to get out of the market's way."
Cramer argued that while Obama didn't cause the market to push higher, he didn't drag it down either. There were, however, multiple moments where he could have attacked Wall Street. Instead, Cramer noted that Obama expressed his desire for economic growth and job creation. Lately the president has made "some really good proposals for business," Cramer said, including a better investment tax and write-offs for small businesses. The CEOs he's talked to have praised these plans, he said.
The "Mad Money" host admitted he's been loud critic of Obama, but is changing his tune with the president's apparent change in attitude. Obama has offered a "decent compromise" in limiting the tax breaks on dividends and income to the "wide band of the middle class" while letting them expire for those who don't need them, Cramer explained. These kinds of compromises can help breed job growth, he said, which will advance the market. Without growth in jobs, he doesn't think there'll be anything more than a short-covering rally in retail. It must become broader than being fully reliant on exports and sales overseas to rally, he said.
"The president is signaling that if business is willing to give a little, then he’s willing to give the CEOs what they want in terms of tax breaks, perhaps a promise to create jobs in return for repatriation of foreign-derived profits," mused Cramer. "Whatever they do, we know this President wants to deal in order to create jobs and that’s new."
Less government intervention will increased the likelihood the US economy will grow, Cramer said. It appears as though Obama is putting some of his initiatives on hold, like card check or cap and trade. In turn, he thinks US employment will increase and so too will the President's approval ratings.
"Much better to have a president who’s actually bullish for the market than to have gridlock."
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