Tags: jim cramer | stocks | healthcare

Cramer: Democratic-Controlled Washington is Anti-Stocks

By    |   Tuesday, 29 Jun 2010 03:14 PM

Investor fears about government economic policy are holding back stocks amid concern Washington will “crimp” earnings, says CNBC commentator Jim Cramer.

“It's impossible to find a company that isn't threatened by the dominant agenda in Washington," he said on his Mad Money show.

Healthcare reform hurt health stocks, financial reform will hurt banks, and the offshore drilling ban will hurt oil and oil service companies, Cramer says.

The George W. Bush administration fostered a "laissez-fair paradise for big business and their shareholders," Cramer said. "Now, though, Washington feels the need to meddle in everything. . . . That's bad for earnings, to say nothing of job creation."

In the end, the government is acting against the stock market, he says.

"Washington used to seem as though it had a tacit understanding of the importance of stocks in everyday life, how they're used to save for retirement and college tuition through 401ks, IRAs and 529 plans,” Cramer said.

He notes that all those vehicles were established by the government to encourage stock investing.

"That pro-growth, pro-stock bias is now gone and without it, it's pretty ridiculous to expect the multiple of the S&P 500 to do anything but shrink."

Cramer’s not the only one who thinks Washington has it wrong on the economy.

The latest Harris Poll shows that 68 percent of Americans disapprove of the way President Obama is handling the economy.

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Investor fears about government economic policy are holding back stocks amid concern Washington will crimp earnings, says CNBC commentator Jim Cramer. It's impossible to find a company that isn't threatened by the dominant agenda in Washington, he said on his Mad Money...
jim cramer,stocks,healthcare
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2010-14-29
Tuesday, 29 Jun 2010 03:14 PM
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