Health-care reform most likely will pass, Cramer said Monday, and investors better prepare for it. He thinks the win would embolden the White House to follow through on a number of other legislative initiatives, all of which could hurt shareholders across the board.
Cramer said that the Democratic leadership has been pressuring fellow party members who disagree with President Obama’s intended reforms, and as a result they are that much closer to becoming law. Not to mention, he doubted that any congressional Dem would be willing to deal the president such a catastrophic loss. Not at the expense of their party’s majority – and their jobs.
If Obama finally signs the bill, Cramer said, then other reforms could soon follow that would change the way business is done in the US. And Washington will have to find a way to pay for the White House’s sweeping agenda. He thinks the money will probably come from removing the favorable treatment given to capital gains and dividends.