President Obama might finally get it, Cramer told viewers Wednesday. Obama might finally understand that Wall Street and Main Street are so intricately linked that you can’t punish the former without hurting the latter. How else could we explain the president’s call yesterday, that stocks are so cheap investors should start buying now?
Cramer’s been criticizing Obama lately – to put it lightly – for his spending plans. The changes to health care, the punitive rates on coal-fire utilities, taxes on the “wealthy,” those people making over $250,000 who also happen to be the U.S.’s biggest employers – the bears used this bad news hammer down the market. But Obama’s buy call yesterday might indicate he’s slowing his aggressive plans to give stocks some room to breathe.
Wall Street sure loved it. The Dow jumped 150 points on Wednesday. Traders seem to think Obama is much more sensitive to stocks than he previously had been. If the president’s good cheer keeps up, Cramer thinks the rally could continue as long as we get some good news, such as a better-than-expected employment number.
The Mad Money host also likes the Term Asset-Backed Securities Loan Facility, which should entice hedge funds to by the paper Wall Street has avoided for well over a year now. The government will most likely backstop any expected losses by hedge funds as long as they participate to get this market moving again.
This confluence of events – Obama’s bullish call, the TALF, a pause in the White House’s stock-killing spending plan – could take us higher, Cramer said. He expected technology, oils and materials to lead the way.
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