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Cramer explains why Wall Street threw a hissy fit in Thursday trading action

Written By | Mar 23, 2018
Jim Cramer opines on tariffs

Cartoon by Branco. Reproduced with permission. (See link below)*

WASHINGTON, March 23, 2018: This column has long railed against the bitter clingers allied with Washington’s Swamp. Refusing to accept Donald Trump as America’s president, they’ve waged war against Trump and his policies 24/7 since his November 8, 2016 triumph. That goes double for his policies, as we saw during yesterday’s sickening stock market crash. CNBC’s Jim Cramer has a take on this that’s similar to ours.

“As the major averages dropped on Thursday, CNBC’s Jim Cramer argued that the moves had little to do with Wednesday’s rate hike by the Federal Reserve.

“‘As long as the 1 percent believes in free trade at any cost, it’s going to weigh on the stock market when the president goes in the opposite direction,’ the “Mad Money” host said.

“The wealthiest people in the United States, many of whom own stock in leading global companies, have long benefited from free trade, or the unrestricted exchange of goods and services, Cramer explained.

“U.S. presidents and business leaders have also long supported free trade, making deals with other countries to expand global trade.

“‘President Trump does not share that orthodoxy and it’s starting to dawn on the business community that the free ride may be over,’ Cramer said.

“Top international companies like Apple, FedEx and Starbucks have also grown their businesses on the back of free trade, Cramer said. And, initially, many of Trump’s moves benefited them.

“‘The combination of corporate tax cuts and repatriation were huge boosts to all the bottom lines of companies, not just the domestic ones,” the “Mad Money” host said. “You could sense how much confidence there was when Congress passed the tax bill.”

“But then came the tariffs, an anti-free-trade move that shocked much of the U.S. elite, even as Cramer thought some restrictions were justified.”

Smart-ass analysts love to dump on the hyperkinetic Cramer. But, as a former hedge-fund manager himself, he tends to know where the bodies are buried. Thus, his commentary is worth reading.

We take things a bit further. The lamestream media, the Marxism-driven Soros-funded left, the Democrats and at least half the Republican Party are also enthusiastic supporters of 24/7 anti-Trumpism. In addition to refusing to accept the Presidential verdict of the “deplorables,” they refuse to see that Trump is a different kind of president.

The President’s initial, seemingly off-the-wall tweets on important national policy matters are never carved in stone. They serve as the opening shot meant to open serious negotiations on serious national and international issues. The immediate, hoped-for result is to launch negotiations on various issues that have long worked against America’s interests. The desirable longer term result would be to rework agreements and issues that allow the U.S. to compete internationally in a more favorable environment.

Read also: Trade War Freakout! Stocks beaten to a pulp in Thursday market crash

The Cramer take on “protectionism”

Trump is in no way a “protectionist.” His intent in stirring up the current, alleged trade war is simple. The U.S. has been involved in a “trade war” with Europe and China for decades now. But, as Cramer notes, America’s wealthy corporations and bigwigs don’t really care, just as long as they can profit from the current situation big time.

We saw the consequences for the stock market during Thursday’s dismal, bone-crushing downturn as we noted in yesterday’s column. Cramer drills down further:

“Of course the stock market gets crushed, because nearly everyone with money in this country thinks this policy is lunacy, so they’re freaking out and turning seller,” Cramer said. “That’s what today’s breakdown was about.”

As Cramer points out, elite American companies and individuals have long countered foreign competition by shipping American jobs abroad. This helps them use cheaper foreign labor to cut the cost of producing consumer goods. That’s a good thing for both the companies, the wealthy and the American consumer. Or so it seems.

Except for one thing.

If this little game causes American factories to close and mass quantities of American consumers to lose their jobs, it doesn’t really help the average citizen in the long run.

Read also: Partisan GE ships more jobs abroad, blames GOP Congress

The elites like things just the way they are

Trump is attempting to at least narrow the imbalance and bring some percentage of formerly lost American jobs back home again. It’s a decision that may cause some short term pain. But in the long run, it will be a major impetus driving an American recovery and a return to American confidence and American exceptionalism: all very good things.

Of course, these are things the elites don’t care about. They like things the way they are just fine. Worse, they’re part of the globalist, one-world government utopia. That’s the greedy dream world wealthy pseudo-Communists like George Soros promote. They want nations and nationhood to go away. They figure if they can get rid of the most pernicious hotbed of nationalism – the United States – the rest of those pesky nationalist dominoes will follow. The elite can rule forever. Soros & Co. want to go medieval on the rest of us.

This needs to be stopped.

Hence, the Trump tariff threat, the President’s signal to open negotiations. Blind to reality, the corporate and individual elite refuse to see this. Ironicaly, they do the same thing every day to earn the big bucks.

Trade war or opening offer on renegotiations?

Trump is not a protectionist. He’s a fair free trader. We should be cheering an American president who’s attempting to pull the American economy out of the Obama-created ditch. No pain, no gain.

Trump wants to negotiate us out of our current trade mess, not deepen it. But the Democrats, the radical leftists and their hypocritical media cheerleaders refuse to see this.

Because #NeverTrump, #Resistance.

It’s time to snap out of this reflex. It’s time for Wall Street to get out of its current funk as well. We’ll see what happens next.

*Cartoon by Branco. Reproduced with permission and by arrangement with Legal Insurrection.

Terry Ponick

Biographical Note: Dateline Award-winning music and theater critic for The Connection Newspapers and the Reston-Fairfax Times, Terry was the music critic for the Washington Times print edition (1994-2010) and online Communities (2010-2014). Since 2014, he has been the Senior Business and Entertainment Editor for Communities Digital News (CDN). A former stockbroker and a writer and editor with many interests, he served as editor under contract from the White House Office of Science and Technology Policy (OSTP) and continues to write on science and business topics. He is a graduate of Georgetown University (BA, MA) and the University of South Carolina where he was awarded a Ph.D. in English and American Literature and co-founded one of the earliest Writing Labs in the country. Twitter: @terryp17