Cramer's 'Mad Money' Recap: CEOs Are Better Than Congressmen
NEW YORK (TheStreet) -- Jim Cramer visited Washington Tuesday, but it wasn't for any vacation. He was there to talk with members of both parties in Congress about resolving the fiscal cliff. The good news, or what little there is, is that Washington didn't seem okay with taking a vacation if a fiscal cliff isn't done, Cramer said, reminding viewers of his "No vacation without legislation" war cry.
However, "it didn't seem like Washington was willing to rise above politics and take the necessary action," Cramer said. "I hope I'm wrong."CEOs are so much better to deal with than congressmen, he added. "I'm not feeling confident our leaders will be able to rise above" partisan politics and come up with a deal.
So the bottom line for investors, Cramer says: "I think we're going over the cliff, then we'll bounce back."
Investors, you have to ask yourself "can you handle the endless Washington intrusion in your portfolio? If you can't, no one will blame you for selling. It really is that bad down there," Cramer said.
North Dakota PrideIf there's one state Cramer loves because of the energy potential of the Bakken shale region, it's North Dakota. So Cramer talked to the Sen. John Hoeven, about whether than can be a deal that promotes small-business growth.
Hoeven, an advocate of finding bipartisan consensus, is an unusual Republican in that he did not sign a no-tax pledge.
"I think we can get a deal on the order of $4 trillion over 10 years" through a combination of taxes and entitlement cuts, Hoeven said. "That's what we need to get our economy going."
As governor of North Dakota, Hoeven was behind a tax code that is "fair and makes sense." He said the state's economic growth and budget surplus comes from economic growth and not from taxes.
The U.S. tax codes must be reformed in a pro-growth way, Hoeven said. We need to unleash entrepreneurial energy, "the small entrepreneurs are going to make a difference."
Cramer said of Hoeven that resolving the fiscal cliff has to do with spirit. "There's no rancor here, just pro-growth. Pro-growth gets the job done. Sen. Hoeven is speaking for a lot of people in trying to rise above." What's needed is leadership from President Obama, who must come out and say we're going to get this done.