Jim Cramer: Why the Cliff Makes the Short Side Look Good
Now here's the problem with going over the cliff. While you can reverse the spending cuts, while you can revert to former tax rates, even if we go over the cliff, no one knows how to put the AMT back the bottle. I have yet to hear how that can happen. Tell me if it can. I haven't read a single positive word about how it can be reversed if there is no deal. If we go over the cliff before the end of the year, it seems etched in stone, and it is the most dangerous of the tax increases.
I believe there could be a deal. I believe the president might be able to "seduce" some Republicans to break their pledge to Norquist, which means the short side could be tough.
But if you think the president can't seduce some Republicans to break the pledge, "seduce" being Norquist's word, then how can you be big long? Why not short?
Just asking the question. Not telling you what to do. Just asking the question. Because it is the most important one out there to ask.