Cramer Relieved that Economy Not Too Hot
This morning’s non-farm payrolls report showed that 20,000 jobs were lost in the month of April. On TheStreet.com TV today, Jim Cramer expressed his relief:
“You don’t want it to accelerate so fast that you think the Fed did the wrong thing because the Fed’s credibility is on the line here.”
As much of a Cramer fan as I am, I am still totally astounded by this sentiment. Was there one single person on this planet who was worried that the US economy was running too hot? What a jarringly bizarre statement.
Not only did both bullish and bearish economists scoff at the -20,000 number, which was “adjusted” upwards by tens-of-thousands of jobs, but there is no evidence that the Fed’s actions have stimulated the economy at all.
In fact, at the exact same time that the jobs number was being reported, the Fed was announcing that they were injecting billions of dollars more into the European Central Bank and the Swiss Central Bank to try and get the Libor rate down. A high Libor rate shows that credit is still contracting as banks would rather stuff their dollars into mattresses than loan them out to other banks.
The Fed is desperate to get Libor down.
I don’t know which Fed Cramer is looking at, but it certainly isn’t the one on this planet.
