Cramer's Morning Take: Debt Crisis 5/12/23

SPEAKER_1 (0:00)

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Well, you only get married once or twice.

SPEAKER_2 (0:15)

The three time stops.

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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.

Jeff, it is important to point out that a lot of people feel that I'm an outlier worrying about the debt crisis as much as I do. And Carl Quintanilla correctly pointed out to Jim if it were so bad, why would any stocks be going up? I come back and say if you look at the period that is July 1st to July 20th in 2011, it was extraordinarily good. Stocks were doing well. That's where we are right now. So let's just say historically, worrying about the debt deal and having a little extra cash is a good solution.

Jeff Marks (1:11)

Yeah, prudence. I think as we get closer to that X date where we may run out of cash, so I'm saying June 1st, the market is going to have to discount that type of probability of potential of no deal.

So it could certainly get more, it's not a volatile day today, but as we get closer to it, things could pick up for sure.

Jim Cramer (1:32)

Well, my writing partner, Matt Horween, sent me a very disturbing piece about the April tax receipts.

They were far lower than they thought. A weaker year.

Jeff Marks (1:40)

Yes, a weaker year.

Jim Cramer (1:40)

And then we put a combination of the treasury meeting with big bankers.

Is it possible that you mean a line of credit from big banks in order to be able to pay our bills? Anything's possible at this point. When I saw what the Republicans were saying about Biden, that he basically is in favor of default, I mean, that wasn't the right, that's not what we heard in 2011 So, what I'm saying is that I'm sorry, I'm using a minute by minute timeline. And yes, it's terrific that there are stocks that are going higher, but I want you to understand that there are many stocks going higher, going right into the teeth of the deficit controversy and budget ceiling, and then they plummeted. So, let's be careful and don't take your cue from here and take your cue from 2011

Jeff Marks (2:28)

And we're not oversold yet. The oscillator was minus 2% yesterday. You know we always get more opportunistic when things get oversold. Just not there yet.

Jim Cramer (2:36)

No. A little patience. We were discussing Footlocker earlier. Now, there's kind of a not so positive piece about Footlocker. Look, we're not expecting anything from Footlocker yet.

Like, we weren't expecting anything from darn Disney, and yet people still like Disney, but look, if the market were oversold and we were going to a Footlocker quarter, I would say, look, take the position up to 2 from 1.5%.

SPEAKER_1 (2:56)

Right.

Jim Cramer (2:56)

You can't. We're not oversold.

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SPEAKER_1 (3:13)

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