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Mad Mail: Health-Care Reform to Hurt Consumer?

Mr. Cramer: If the government mandates health care, I believe it will have the effect of removing $4,000 to $6,000 per household of consumer spending. If a bill with a mandate gets passed, should I be concerned for the economy and move into more defensive stocks? --Dan

Cramer says: “I do not believe that Obama has enough votes. So I’m not as concerned. I also think it’s going to be put off until after December. That said, if what you described happens, absolutely. Which is one of the reasons why I hedged my bets for my charitable trust, and I own a stock like a Pepsi , why I own an Altria. Because I fear that something like this could happen or that our taxes will go up and they will slow the economy. That’s the way you play it defensively.”

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Cramer: Thank you for all you do for the little guy! Now that the market has been moving up, up, up, what is the story with the reinstatement of the up-tick rule? Has everyone forgotten about the need for this? --Dave in New York

Cramer says: “I think that Mary Schapiro, the SEC … I think they’re trying to figure out what the right thing to do is. I think that the bear raids could come back very easily right now … [the uptick rule] slows the selling process down. And that’s all we need is to slow it down so cooler heads can prevail.”

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Booyah Jim!: I had the good fortune to purchase some Freeport-McMoRan during the market meltdown in December. I sold enough during the summer that I'm now playing with the house's money. I don't want to be a pig that gets slaughtered, so should I sell some more or continue to hang on? --Eric

Cramer says: “Don’t sell. You are playing with the houses money – you let it run. See, you can’t lose.”

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Booyah Cramer: I've been a very big fan of yours. I own all your books and can't wait for your new book to come out. With the improving market, how can someone consolidate their portfolio from 30-plus stocks down to just a select few? Is this consolidation strategy even necessary now? --Tony

Cramer says: “You are what’s known as being overly diversified. I always like to call people like you a mutual fund. Remember, you have to cut down to the number of stocks that you can research … I want you to go by sector. I want you to cut. If you have two in one sector, I want you to take the best one and sell the worst one. Work like that, get down to five sectors, with two per sector at max.”

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Hey Jim: I'm 19 years old and new to investing. Since I've started, I have been hooked on Mad Money. I have some stock in Yahoo! at the moment. After a few very strong days, I have been hearing arguments for selling against the grain. I ultimately lay my greatest trust in your advice. Please help! You are my hero. --Ian

Cramer says: Yahoo! “is so far behind the rest of the market that it’s playing catch-up. I continue to believe that Yahoo! plays catch-up to $20-$21. I don’t like the massive slamming of Carol Bartz. I think she’s trying to do a good job … let’s see what she does.”

Call Cramer: 1-800-743-CNBC

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