Cramer's Stop Trading! Cheer up, Obama (9/14/09)

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Monday September 14.

Wells Fargo (WFC), JP Morgan Chase (JPM)

Obama urged Wall Street to "learn the lessons of Lehman Brothers" and promised increased regulation. This news could be potentially worrisome for Wells Fargo and JP Morgan, because they control a "huge percentage" of the mortgage market. However, these stocks actually performed well following Obama's speech, and seemed to demonstrate that they are "in compliance."

Cramer didn't think the President gave the right message and was far too negative. A year after Lehman Brother's demise, the fact that the banking system did not collapse and most sectors are performing reasonably well is a reason to be optimistic. While there are "pockets of weakness," Cramer added, "This system turned out to be stronger" than the challenges it has faced.

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Comments

[epeon:]

Why should you be surprized by Obama's speed? He is, afterall, a lawyer. What does he know about economics? The last economics major who was president of the US was Ronald Reagan. Not surprizingly, he is the last president who understood economic concepts.

Sep 15 08:35 AM

[ilmn:]

epeon-You must have been sleeping when Ronald Reagan was sleeping?

Sep 15 09:16 AM

[tginomorebush:]

Mr. Cramer....possibly a little more respect for "President" Obama"!!!

Sep 15 09:47 AM

[captmike:]

On what calendar was Monday 9/13?

Sep 15 01:24 PM

[Cramer #1:]

The market won't like that because market was anticipating a "V"
shape
recovery!!!

"Yellen said she is forecasting a recovery that is far less robust
than those following past recessions, and expects it to look more
like
the letter U than a V. "


S.F. Fed's Yellen says recovery still at risk of shocks
She's worried more about threat of falling prices


SAN FRANCISCO (MarketWatch) -- San Francisco Federal Reserve Bank
President Janet Yellen said Monday she expects the economic recovery
in the U.S. to be "tepid" and slow, suggesting that a debilitating
and
sustained drop in prices poses a greater threat than runaway
inflation.


In a speech to a group of financial analysts here, Yellen said that
this summer probably marked the end of the U.S. recession, and that
the economy is on track to expand in the second half of this year.


Bernanke's challenges in Term 2President Obama chose the safer path
when he reappointed Ben Bernanke as the head of the Federal Reserve.
But David Wessel says Bernanke has two big challenges ahead: proving
his independence and deciding when to tighten up monetary policy.
But the expansion that's already started to gather steam "will remain
vulnerable to shocks," and the unemployment rate will remain
"elevated
for a few more years," she said in a speech, delivered 10 minutes
before the close of stock-market trading.


Yellen said she is forecasting a recovery that is far less robust
than
those following past recessions, and expects it to look more like the
letter U than a V.


Even a growth rate of 3% to 4% in the gross domestic product would be
considered "tepid," she told reporters after the speech.


An expansion at those levels "will leave us with an unemployment rate
that's way too high for far too long," she said.

Sep 15 02:45 PM