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President Obama needs to put his budget plans on hold, Cramer said Monday, to give the markets a chance to recover. If not, investors can expect more 300-point Dow declines and 4.7% losses in the S&P 500, which is what we got today.
Cramer wouldn’t say that what’s good for the stock market is always good for America, but right now that’s the case. Stability’s the key metric here, and the market is one of the ways that is measured. Obama and his administration seem totally oblivious to this fact, though. The recession has already pushed stocks down, but the White House’s plans – a balanced budget, increased taxes for the rich, changes to health care – are pushing them down even further. As a result, the wealth destruction we’ve seen over the past 19 months or so continues.
Watch the video for the full story. Find out what could happen if the Dow drops below 6,000 – or even 5,000.
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