Jim Cramer on economy recovery: “I don’t think the stock market is

lying here”

Anchor: “Strong numbers that we’ve tracked during the recovery, that is the job
numbers today confidence, retail sales, q2 (second quarter) price action on stocks, says,
stock market will drop to nothing if you elect a president who raises taxes and says ‘this
is not just luck that’s happening, this is a lot of talent’”.
Jim Cramer: “Look, we know the Fed has been incredibly easy, so there’ve been
very few failures despite the pandemic. We know Secretary Mnuchin has helped with
this program five million different companies… so I, look, there’s, they threw a lot at
the economy in order to make it work and I think you could argue from that
employment number. It is working. I don’t think the stock market is lying here. I do
think that there is a level of speculation, but there are also a lot of companies that I
guess what are going out of business that didn’t. I think Jay Powell (Jerome Powell)
deserves a lot of credit because the credit market did not go bad, and David, you know,
behind the scenes, the credit market could have gone very bad.
David: “Yeah, there were some scary days in mid to late March, guys, that we
well know about as we watched the president leave the podium after going through all
those numbers. There were scary days there; and it’s interesting. Of course, Carl, I can’t
remember the last time that the president had an angry tweet for Jay Powell, which prior
to the pandemic, of course, and for years had been the case. Certainly, every so often
talking about how rates were not low enough, and yet interestingly as Joe, sorry, as Jim
points out, you know he has helped a great deal here. I mean, Jim when you come back
to a conversation on this market every time, many of the professionals I’ve talked to just
say ‘it’s the Fed’”.
Jim Cramer: “Well, look, I mean, we had record unemployment and we had
what, Hertzfeld, they were in trouble already. JCPenney failed, they were really in a lot
of trouble. They didn’t let any company fail that was doing well. If you go over what
Secretary Mnuchin said we’re ‘gonna’ business interruption, insurance provided by the
government. So, I think that there could have been, I mean how did the cruise lines
survive, how did the airlines survive, and the answer is Secreaty Mnuchin and the
Federal Reserve decided they weren’t ‘gonna’ fail, and they obviously should have
failed given the rot on them. You could argue that the banks should have already, they
should’ve had to have their dividends cut. But there was so much money being pumped
in that they seemed safe, so, yes, there was the Fed and Treasury decided not to let this
become a depression. And I kicked it, I don’t know, think, thought, that it would
become a boom and we still ‘gonna’ have a lot of small midsize businesses that are in
trouble because the social distance, but look, I, the credit do what credits do, there
should have been a lot more failures given the unemployment number. Well, they
didn’t.
Anchor: “Yeah. To David’s point though, I mean the president yesterday said he
was happy with Jay Powell – didn’t get a shout out not did Mnuchin in that briefing, at
least what we heard. Jim, the Washington Post Now has a piece saying that White
House economic officials have told advisors that, because the jobs numbers strength
today, stimulus for pricing will likely be smaller and that the opposition to extending the
$600 care act benefit, which is opposed by Trump, will get firmer”.
Jim Cramer: “Well, look, this is the great irony is that we’ve never had incomes
go up during a period when there’s been such joblessness, and so we should remember
that there is their stimulus hole over the place. I mean, the economy is on steroids now,
can you take the economy off steroids once it starts getting momentum? Well, you have
to follow these states if you start seeing a lot of closures, I think that it will dampen the
momentum, but we’ve got it, and we’ve got money in people’s pocket. Look, we’ve
spent several trillion dollars to get it, so we have that board being green, and you could
argue that the trillion, the several trillion dollars paid off or you could argue that you
have to start paying off to several trillion dollars. But there’s just so many companies
that we would have thought went under that didn’t go under, and they didn’t go under
because Treasure Secretary and Chairman Powell said ‘no, we’re not to do what
happened in 2008, we’re not going to be laissez-faire, we’re going to be in there, rolling
our sleeves up, Secretary Mnuchin goes to the Democrats and says what do we need to
do, they actually get something together’. It was incredible to see the Democrats go with
the Republicans, and, look, the green is extraordinary, alright, let’s just call it. The green
is extraordinary”.