Cramer's Morning Take: Debt Ceiling Standoff 5/11/23

Stephen Dubner (0:00)

There is a movement to return the world's most important artworks and artifacts to the places where they were made.

SPEAKER_2 (0:06)

They were stolen. They were taken through very brutal armed conflict and colonialism.

SPEAKER_3 (0:12)

There is no system where they can be returned in a way that is consistent with the values of a museum structure.

Stephen Dubner (0:18)

I'm Stephen Dubner with a new series on returning art. That's from Freakonomics Radio. You can find us on SiriusXM, Stitcher, Pandora, or wherever you get your podcasts.

Jim Cramer (0:33)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting. We are now deep into the notion that we are going to default.

The Republicans certainly have a lot to gain from default, I believe, because no sitting president first term who's had a recession in his final year has ever won the election. So if you think that it's a total partisan affair and the Republicans are just waiting for the Democrats to do something and Biden is refusing to negotiate, then I think that McCarthy, whom I know, doesn't want to lose his job. And therefore the tie goes to the House. And what that means is that people are very concerned that all these things about how we might be a deadbeat country means nothing in terms of defeating President Biden. And this may be a chit to defeat President Biden.

Jeff Marks (1:25)

And this means keep cash on the sidelines because the headlines are only going to get worse from here, more nasty from here. So nothing wrong with having some cash, not nearly close to being oversold yet, waiting for that to happen.

But that's why we're sitting around 10% cash if we see an opportunity to trim maybe into strength, still looking to do that as well.

SPEAKER_6 (1:48)

Right.

Jim Cramer (1:49)

And look, I want to make you clear, people, do I think that they ultimately will default? Well, the president has a strategy, too. The president's strategy is going to be able to use the 14th Amendment. 14th Amendment just strictly just gives you the shorthand that says the president must pay the bills.

Okay, there's no choice but to pay the bills.

And so ultimately what's going to happen is the president can say he has controlled the situation, therefore they're going to pay. That goes to the Supreme Court. The Supreme Court is a Republican Supreme Court. They will use a different interpretation, a less strict interpretation of the 14th Amendment. We'll then go back to the House and we'll have a deal. But you can imagine the steps and what can happen in the interim.

Jeff Marks (2:25)

And if we do get a big pullback related to the debt ceiling, you gotta buy into the teeth of that.

Jim Cramer (2:31)

You have to buy into the teeth.

Jeff Marks (2:32)

Because usually, historically, it sets up as a good buying opportunity.

Jim Cramer (2:37)

Yes, I mean, it's very rare for a country to actually default. And just to give you the essence, with the French when they were defeated in the Franco-Prussian War, defeated, still paid the bills.

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SPEAKER_7 (3:03)

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