CNBC’s Jim Cramer Blames ‘One of the Worst Days in the History of the Stock Market’ on Fear of ‘Coronavirus-Induced Recession’
CNBC’s Jim Cramer weighed in after a shocking 2,000-point plunge in the Dow Jones Industrial Average, blaming the massive sell-off on investor panic over the possibility of a “cornonavirus-induced recession.”
The garrulous CNBC host began his Mad Money show on Monday evening with a long, sober soliloquy about “one of the worst days in the history of the stock market” and why it happened.
“You probably lost a lot of money. It’s probably what happened to you,” Cramer noted. “That’s because, of course, the Dow plummeted 2,014 points, its worst point drop ever.”
“So OK, it happened, don’t like it, it happened. What the heck got us here? Where do we go next?” Cramer continued. “First, today’s sellers fear we are going into a coronavirus-induced recession and they’re trying to get out of other people who want to sell, just trying to get ahead of them.” that may sound fanciful that we had six cases in this country and 22 deaths. in the end, it seems like a super food than the playing.
“As the president tweeted earlier, ‘37,000 Americans died from the flu last year…yet nothing is shut down life and the economy go on,’ end quote. But the markets were not reassured by that or anything else they heard today. Not the bond market, where treasuries spiked with their yields sinking to frighening record lows, not the stock market with its breathtaking breakdown. not the oil market that market down 24% and that came out of nowhere.” Cramer said. “So, who is right the president or the markets? Was Trump crap telling us that this oil price war between Saudi Arabia and Russia will be good for the consumer because it means lower gasoline prices so we should be more bullish? Here’s the thing, cheaper oil would’ve been great for us a decade ago.”
He pointed out that, as Trump often boasts, the United States is now a net exporter of oil, so a massive oil price drop could actually harm American oil and gas production businesses, causing layoffs and defaults. “Therefore, Oil price may be more a negative than positive and ripple through the stock market and right down to the banks.”
“As for the number of people with COVID-19, sure, we’ve diagnosed less than 600 of them,” Cramer said. “But some of that is because we don’t have enough test kits. In some areas, they don’t want to test you until you are very sick, not just running a 100 degree fever, for example, very sick further along. I find that ridiculous.”
Americans won’t take the positive aggregate number seriously until we get a better handle on the pandemic. Until then, they won’t feel good about going out, traveling, congregating anywhere,” he added.
Watch the video above, via CNBC.
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