Cramer's 'Mad Money' Recap: Lose the Gloom and Doom
NEW YORK (TheStreet) -- The Washington frightfest is almost over, according to Jim Cramer.
He told "Mad Money" viewers Wednesday it will be time soon to enjoy the fact that politics no longer matter to the markets.
The markets have overcome two of three big hurdles: the presidential election and the fiscal cliff. That leaves only the looming debt ceiling debate, and this last obstacle is actually the least worrisome, Cramer said.
The thing the markets feared most the last time the debt ceiling reared its ugly head was a U.S. debt downgrade, said Cramer, and that's exactly what it it got a little over a year ago.
Except that when the downgrade happened, the world didn't end as predicted. Cramer said this time around won't be any different. The media has a tendency to over-hype these events, which is why new regulations haven't crippled the banks and why another debt downgrade won't cripple the economy.
When push comes to shove, there has to be a debt ceiling deal because no politician gets re-elected if the government shuts down and Social Security checks don't go out on time, Cramer explained. In the meantime, even if we have to call ourselves the United States of Three-Ring Circuses, once the deal is done and certainty returns to the markets there will be a flood of new money rushing in.
That's why investors need to ignore the doom and gloom reporting and the wave of analyst downgrades, said Cramer, because the time to invest is before that money flows in, not afterwards.
In the "Executive Decision" segment, Cramer spoke with Michael Sutherlin, president and CEO of Joy Global (JOY) , the mining equipment maker that forecast a turn in the Chinese economy back on Sept. 13 when Cramer last spoke with Sutherlin.
Sutherlin said his company continues to see improvement in China and is seeing a pickup in demand for everything from electricity to steel production to truck volumes to exports.