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October 22, 2008

With either candidate, Wall Street and Main Street are screwed. Obama is a recession, McCain is a depression. - Inspired by James J. Cramer

Writes Cramer: "For all his talk of being a maverick, McCain looks an awful lot like President Bush on the credit crisis: He doesn’t seem to understand Wall Street or Main Street, he is dogmatically anti-regulation, and his economic team is a joke."

Obama, in Cramer's opinion, offers far more hope than McCain: he inspires confidence, he better understands the complexity of the economy's problems, he has a better team backing him and he's what Cramer calls a "globalist."

That being said, things look grim even under Obama's leadership, says Cramer. " Let’s assume for the moment, if only because the most recent polls suggest it will happen, that Obama becomes president. How will the economy look a year from now? Still pretty damn bad. Before things settle down, we’re going to see credit defaults spreading from residential homes to commercial real estate to credit cards. I can see unemployment hitting 10 percent before heading down…At this time next year, I could see the Dow as low as 8,300. That’s more than 40 percent off its October 2007 high of 14,164."

To read all of Cramer's extremely dark and dire predictions, click here.

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Comments | 18 Total

October 22, 2008 at 10:59am by DENNIS MCGILL

At least with Obama there is a sense of building collaboration instead of playing "Father Knows Best" with McCain who keeps saying there's a plan but we haven't heard much of it.

October 22, 2008 at 11:22am by Steven Collier

At least with Obama we'll be dealing with the economy in informed, 21st century concepts and actions, not in the 1950s that John "W" McCain is comfortable with. And Obama might survive an entire term to follow through on economic policy and action whereas a McCain presidency will likely have Sarah "I can see a dollar bill from my house" Palin doing even worse than "W".

October 22, 2008 at 11:40am by Mel Blitzer

Obama has built an incredible, well organized, grassroots network across the US. You can imagine if he harnesses this organization for the collaboration necessary to effectively weather the economic storm. this kind of organization offers more hope than anything homeland "security" can.

--
Mel Blitzer

October 22, 2008 at 11:54am by Rip Empson

The candidates are obviously not the catalysts of this so-called econoclypse, but it is true that each have a unique opportunity to put the brakes on the financial tumble. Certainly, the economy will continue to struggle no matter what political party is occupying power, but which candidate or party has the goods to help the average American through the recession?

For me, it comes down to which candidate can best reach across the aisle. In a recession, it is imperative for Congress and the Senate to work across political boundaries in order to pass resolutions (and regulations) that help stabilize our economy and fortify it against future disasters. During the bailout bill, we saw -- again -- that petty political mud-slinging is still standard OP even at the highest levels of gov't. So a candidate schooled in domestic diplomacy would be ideal in the coming year. I will be happy as long as recession doesn't turn into a Depression, but personally I have more confidence in Barack Obama's abilities to be a uniting figure, rather than a divisive one. We don't need another Decider, we need a human version of Duct Tape. Though some may disagree, I really think Obama views himself as a reconciler of opposites, a seer of merit on both sides, and a "transcender of stale debates." And I think it is this characteristic that will help get us back on track.

October 22, 2008 at 11:58am by Alex Herzog

I think they are both crazy to want the job!

October 22, 2008 at 12:51pm by Warren Whitlock

if you are depending on the outcome of the election to change your business, you are screwed.

October 22, 2008 at 2:18pm by Dale Thompson

I agree with Warren...depending upon one candidate over the other is pointless. The real issues are we are spending more than we have and on the wrong things and Congress is too busy yammering at one another to work effectively and productively to solve problems in a bipartisan manner. Washington is broken and it will take evryone in both parties working together to fix it. Both campaigns have gotten sidetracked and are not speaking effectively to the issues that need to be addressed. Both have plans and both sets of plans have grievous flaws in them. And if some of those flaws pass (like Obama's wealth redistribution or McCain's health care plan) things will get a lot worse.

October 22, 2008 at 2:42pm by Jack McCart

I agree with Bill T. We spend too much. Get our spending under control like most families do and we might be surpirzed at the result. Also, which of the candidates has actually worked with people from the other party to achieve something? Is anyone paying attention?

October 22, 2008 at 2:49pm by Jack McCart

Sorry, I meant Dale T.

October 22, 2008 at 2:52pm by Kristin Marquet

McCain is more well-versed in economics than Obama...

October 22, 2008 at 3:23pm by Chheang Yang

McCain's also well versed in adultery, divorcing a disfigured beauty queen wife and marrying a new rich ex-cheerleader.

I'm sure Joe the Plumber won't benefit from Obama's taxes (he'll probably be forced to pay the back taxes he owes)

October 22, 2008 at 6:39pm by Nunzio Martin

I love how most of you love Obama, I am being sacastic ofcourse, neither candidate has the right idea Obama is a socialist hands down, a good speaker yes a leader no, McCain despite all of his efforts to be a "maverick" is a joke, what we need is far less spending and less taxes keep government out they only cause more problems just look at the track record on anything they touch.

October 22, 2008 at 11:00pm by Mark Schwartz

Spending is undoubtedly the problem that must be fixed in the long term, but in the short term, we need our business to thrive in order to have competition for the labor of the middle class...the only real occurance that will benefit the middle class. We need our businesses to invest and increase their competativeness with competition from other companies. We have the 2nd highest corporate tax rates in the industrialized world! Obama wants to raise them. The top 10% of wage earners are paying 80% of the taxes. Obama wants them to pay more. He will provide disincentive for investment and hiring. And by the way, his windfall profits taxes were tried in the 70s and the oil companies cut back on exploration and investment. Understand, Barak, tax increases are a disincentive for businesses and wealthy individuals to invest, and that hurts job creation. You want to help this economy in a hurry? Go further than McCain's corporate tax cut to 25%, cut the corporate tax rate to 0% and make it permanent so corporations can plan. You will see major investment and hiring and new start ups, and overseas companies locating here. Don't worry my socialist friends, the earnings will be taxed when they are distributed as dividends, just not doubly taxed as they are now.This will be much more effective than writing a check to people who pay no taxes and calling it a tax cut so it is politically feasible. Wake up America to who this left-wing socialist really is!

October 23, 2008 at 8:10am by Randall Drew

With all due respect to Mr. Cramer, while I am not thrilled with either candidate, at least McCain is not a socialist. Obama will raid the treasury, or what is left of it, for his $800,000,000 in social givaways "spreading the wealth around." If that is what you want, then vote for him. Just don't complain when your taxes go through the roof, that is if you still have a job. George Bush was a disappoinment on spending, but he is not running for president. Hopefully, if McCain gets the nod, he will do what he claims he will, cut the budget, line by line. I am not holding my breath that either man will do us any good. If there were a third party conservative, and I mean truly conservative candidate, I would vote for him/her. I never got a job from a poor person, and doling out money to those who don't or won't work will not solve our problems. I have said it before here, and I will say it again. Everyone who can, must work at a job. If you can't find one, make one. It's called being entrepreneurial. For those who are truly unable to work, then we must care for them, but they are the minority. I live in a small town, and even here I have watched people gaming the unemployment and welfare systems for years..legally. I am working as an independent contractor as a sales consultant, and times are tough. You have to be tougher. Watch your money and work longer hours if that is what it takes. Bigger government is not the answer.

October 23, 2008 at 8:31am by Randall Drew

I can't believe what I am reading... Obama a uniter?? When has he gone against his own party for the sake of unity in his 143 days as a U.S. senator? What flavor of Kool-Aid are you guys drinking? Make no mistake - I am no big fan of either candidate, but if Obama was anything other than the DNC nominee, he couldn't even get a security clearance for a low-level government job. What has he done, or for that matter, run to qualify him to head up the largest "business" that is our government besides preached at us with platitudes to make us feel good? What legislation has he authored to do ANYTHING for this country? Nothing. Who are his staff members? Mostly democrat party hacks and Clintonistas. Is that change, or rewinding the clock to the Clinton years which were financed by the Reagan/Bush economy? As for McCain, I don't know what to make of him either. If he gets elected, will he really take an axe to the budget, or walk across the aisle and sign off on social spending anyway to keep his dem pals happy? The only thing I like about McCain is that I believe he understands our international security risks, while Obama thinks we can talk through the threats with his pulpit prose. Clinton tried that and we ended up with 9/11. Time for a third party to shake things up. Picking the lesser of two evils is not a real choice, and will certainly not give us the "change" we truly need to get this country headed in the right direction. What we need is less intrusive, smaller government. Our federal budget has ballooned to over $3,000,000,000,000.00!! I wrote it out so you can see, it is a big number. I was around when the democrats skewered Reagan for submitting a ONE trillion dollar budget. We are triple that and they want MORE. Anyone up for a tax revolt?

October 23, 2008 at 9:59am by Lynn Moyer

I concur that Mr Obama has indeed created a large base for the Democrat party. With all the suggestions of voter fraud, I only question how this was accomplished.

October 23, 2008 at 11:09am by srikant harihar

Wall Street has become a Wal Mart street now,
was the current president not knowing how,
all through the decades, in his pursuit of Bin Laden,
he never realised that his country's money was subprime laden,

now that CHANGE and experience are fighting it out,
in a media created circus akin a boxing bout,
what each will bring in with him is a new hope,
but things done cannot be undone by God or the Pope,

lets hope for the best that sanity prevails,
the future leaders are listening to as the money wails,
help thyself before you help your neighbour,
should now be the commandment of the hour

October 23, 2008 at 11:20am by Richard Caretto