CNBC's Cramer: US Is 'an Engine Without Any Train Cars Behind Us'

Image: CNBC's Cramer: US Is 'an Engine Without Any Train Cars Behind Us'

Tuesday, 06 May 2014 01:29 PM

By Michael Kling

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Market headwinds are getting worse. In fact, they're becoming gusts, says CNBC Mad Money host Jim Cramer.

Other than the United States, economies around the world are slowing, he explains.

"The United States is the only economy that's gaining momentum. Right now we are an engine without any train cars behind us."

Editor’s Note:
5 Shocking Reasons the Dow Will Hit 60,000


Although the eurozone debt crisis has stabilized, growth is slowing across Europe. Japan, Brazil and other emerging markets are having troubles. Even China is slowing.

"This once-double-digit growth economy will be lucky if it can mount a 6 percent advance this year," Cramer predicts.

The Ukraine crisis has raised fears of a widening war. "There's a growing belief that Putin is willing to risk a war to teach Western Europe and our president that Russia is not to be taken lightly."

Corporate financials are another headwind. In a humungous accounting error, Bank of America overstated its regulatory capital by $4 billion, leading it to suspend its buyback and planned dividend boost.

"I find this astounding. I can still barely believe it," he stresses, arguing that those responsible for the error should be fired.

Plus, JPMorgan Chase announced that its business is down drastically, with its trading revenues down up to 20 percent in the first quarter.

Housing will have difficulty year, Cramer notes, pointing to data from real estate broker Realogy. Tight mortgage criteria, fewer homes on the market and high home prices will slow home sales. That weak housing market will be a drag on other areas of the economy, including the stock market.

Retail is another worrisome industry, he adds, noting that Target axed CEO Gregg Steinhafel this week after the security breach months ago.

"Why does this matter? Because, believe me, if Target's business had turned, Steinhafel would still have a job."

Stocks face a difficult road for a while, Cramer predicts.

"Now, I don't want to be a downer. There will always be individual stock opportunities in any market and right now some stocks have gotten oversold. But broadly, we have some huge headwinds, and unfortunately they look to be getting worse, not better."

Stronger sanctions against Russia over Ukraine are already impacting neighboring countries and endangering Europe's fragile recovery, according to The Wall Street Journal.

Deeper sanctions could have unintended consequences in world financial markets, and damage to the Russian economy may spread to Western Europe, economists warn.

"It's a bit like getting into a fight with your spouse," Bryan Carter of Acadian Asset Management, tells The Journal. "You want to make your point without damaging anything."

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

Related Stories:

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Patrick Watson: Is Apple Un-American for Resisting NSA?

Wednesday, 01 Oct 2014 08:42 AM

Some 10 million Apple fans, including this writer, queued up last month to buy Apple's (AAPL) new iPhone 6. It was a pea . . .

ADP: Private Sector Created 213,000 Jobs in September

Wednesday, 01 Oct 2014 08:42 AM

U.S. businesses continued hiring at a solid pace in September, according to a private survey. The result marks the the s . . .

Glaxo's Ebola Vaccine, Rejected by WHO, Now Best Hope Amid Outbreak

Wednesday, 01 Oct 2014 07:28 AM

The calls started coming in August to the office of GlaxoSmithKline Plc Chief Executive Officer Andrew Witty from the he . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved