The Corner

Cramer: ‘Give me a new New Deal, but Not Yet!’

Rush Limbaugh seems like a natural ideological target for this White House, but Jim Cramer is a big liberal, sympathetic to nearly everything President Obama wants to do. He writes again today on his continuing tiff with the Obama administration and its defenders. But in this excerpt, he concisely expresses his position on Obama and the markets:

I do favor almost all of Obama’s agenda, right down to having the rich pay more of their freight in this great country. It’s just not the right time…When Obama trounces both unemployment and house-price depreciation, he will have the power to enact anything he wants. But all the initiatives he wants to rush, like tax hikes, changes in health care, tinkering with the mortgage deduction — good grief, right now in the midst of the worst housing downturn ever — and the tough cap-and-trade rules, will derail any chance we have of turning this economy around. Instead, they put the Second Great Depression smack on the nation’s table.

The markets thought he could stop it; hence the giant relief rally when he was elected. But in fewer than 50 days of his ascendancy, the markets’ hopes were totally dashed and the averages are now forecasting the worst decline since the Great Depression. As someone who listens to what the averages are screaming, I think they are accurately predicting the future.