So what if GM NYSE: (GM) (Cramer's Take) hangs at the balance and the automakers don't sound like they are going to get a deal anytime soon. What matters, of course, are the futures! Today's futures action is brought to you by a combined Europe and Asia arithmetic session where Japan rallied and Europe is not down 3%. If Europe rallies at all we have a higher opening and all of this is ... totally fatuous.
Our market has decoupled from those others for the most part because we are in our own particular auto hell. We simply are not going to be the same economy if we are not bailing out the autos.
For the record, if it had to do with finance and discipline, I would just tell Cerberus, "You made a big mistake, nothing for you," and I would tell GM and Ford (NYSE: F) (Cramer's Take), "Time for prepackaged bankruptcies, and the feds will give you debtor-in-possession financing."
But that's way too sophisticated for this Congress.
So we have all of this wrangling about nothing.
Suffice it to say, if we get no deal for the autos, Europe doesn't matter.
The futures are wrong and stupid again.
If you think there is no deal, sell.
If you think there is a deal, buy.
Oh, and stop worrying about hedge fund redemptions. New round coming after Nov. 15.
Jim Cramer is co-founder and chairman of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer had no positions in the stocks mentioned.
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Reader Comments (Page 1 of 1)
11-17-2008 @ 11:28AM
BHarrison said...
The economy is not going to “bottom out” and start to improve until:
• INTEGRITY has to be restored to the market BEFORE investors will invest in the markets
• Consumers will not have the “faith and confidence” to start buying until the markets stabilize;
• Market stabilization and increased economic activity will not begin sufficiently until the corporations are purged of the CORRUPT management who orchestrated and perpetuated the MASSIVE FRAUDS that have undermined our economy;
• NONE of this will be possible until Congress establishes reasonable “oversight and regulation” of the business activities.
• This will require purging Congress of the INEPT, INCOMPETENT, and CORRUPT Congressmen who allowed these FRAUDS to occur.
The ranks of the FIs must to be thinned to match the adjusted new economic activitiy. The era of predatory capitalism must come to an end; there must be a return to healthy capitalism with integrity.
11-19-2008 @ 1:24AM
Lindy Wren said...
Is anyone buying GM?