Cramer's Stop Trading! It's Not Hard to Destroy the Banking System (3/9/09)

Stocks discussed on the Jim Cramer's Stop Trading TV Program, March 9, 2009.

Schering-Plough (SGP), Merck (MRK), Altria (MO)

Looking at the S&P 100, Cramer noted only 9 of those stocks are up for the year so far, and even then, none of the stocks have increased more than 5%. Cramer called this a "monumental decline" of 91% of the index. The fact that the S&P100 is comprised of large cap stocks which are popular holdings for retirement portfolios has huge implications for the average American.

The few stocks that are up do not seem to have sustainable gains: Schering-Plough and Merck jumped on news of takeovers, and Altria had nowhere to go but north after getting pummeled. Cramer questioned Obama's judgment to implement tax increases and alter mortgage deductions when conditions are so dire.

While Cramer admitted he voted for Obama, and thought a tax increase on the wealthy was in order after a recovery, he added: “I just think it’s ill-advised to do it now because I think a second Great Depression is on the table. I think that’s what the averages are saying. I think you could destroy the banking system in the three weeks we have between now and when [Treasury Secretary] Geithner speaks."

“It’s not hard to destroy the banking system,” Cramer said.

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Comments

[dbc:]

Too bad Jim voted for Obama.
And that many on Wall Street
sent funds to his campaign.
The best predictor of future
behavior is past behavior, and
Obama's is that of someone who
despises wealth, will punish success
and who basically dislikes the
country he now leads. Bad news for
the market.

Mar 10 09:19 AM

[Flatiron:]

Poppycock!

Cramer is a touter with short plays in foreign trading houses. Go back to 2005 and look at his plays on companies like Overstock. He puffed it, then trashed it along with his nose packing buddie Kudlow.

Holder, make a real name for yourself cnd cuff this guy.

Mar 10 11:06 AM

[Candor7:]

DB is absolutely right,

We have a president who is a nationalist socialist who has managed to hoodwink America, thanks to the MSM, and populist anti-rascist culture.Obama cannot be criticzed.
And he hides his agenda behind a proclaimed "on the job training."

In a few short months, Obama has defined an American investment class, and has set out to destroy it.His next moves will ivolve social engineering work in our cities, all focused on his re-election in 2012.

Smart money has long ago gone off-shore and that money is not a capitalization source that will return any time soon.

Canada's banking system and its equities market is benefiting tremendously.Perhaps those who read this can take a pretty decent hint.

Those thinking on a near term ( 1 year) recovery period for the US equities market are still drinking kool aid,or cannot read the numbers.The market will not recover during the Obama presidency, unless he does what is necessary outside of his ideologically enclosed, narrow mind.

Suspending capital gains for 3 years and zeroing Corporate taxes could work,along with placing appropriate institutions into receivership, but even that window now is closing.

I have smell the distict woodsy aroma of the Northern climes of Canada. I wonder if if that perfume has reached the noses of other investors as it has mine.

Every recent IPO of Canadian Bank Preferred shares has been presold by subscription.

Cheers,

Candor7

Mar 10 12:06 PM

[howRyou:]

Wouldn't it be fun to destroy the US Banking System :-)

Mar 20 06:08 PM