Cramer’s Cure for Ailing Stock Market: News Media Blackout of 'Bolshevik' House Speaker Nancy Pelosi

July 10th, 2009 9:04 PM

CNBC "Mad Money" host Jim Cramer often showcases erratic and unpredictable behavior and the same goes sometimes for his analysis of the stock market.

While the economy continues to struggle through the recession, the forward-looking indicators known as the financial markets continue to perplex Cramer for not going up when some positive signs, also known as "green shoots" by the financial media, are starting show. According to his analysis - it's the government and a reliance on oil futures that have scared off investors.

"How did we reach this point where investors just can't be bothered to respond to clear unalloyed positives or be tempted by low, low prices of so many stocks?" Cramer said. "I think we've been worn down, I think we've been worn down by two different things - first, the government and then oil. And they're what's keeping everyone apathetic about stocks."

Cramer explained threats of taxes and regulations have made investment in the United States and uncertainty.

"The government seems to propose a tax a day to keep your profits away, and a regulation a day," Cramer said. "And it's one of those main reasons why we've been down for four straight weeks. The federal government makes us all feel like we should be investing in another country."

His solution - shut Washington down by sending everyone off to the Delaware coast and imposing a media blackout on House Speaker Nancy Pelosi.

"It makes me think we could rally as much as 500 points," Cramer said. "If everyone in Washington just went down Rehoboth or Bethany Beach for a couple of weeks ... and stop coming on TV already. If the news media would just blackout the Bolshevik Speaker of the, did it again. I mean, the Democratic Speaker of the House Nancy Pelosi, it couple be worth a couple of hundred points on the Dow too. Come on Madame Speaker, do it for the good of your country! Or, at least for the good of our portfolios."

The other impediment according to Cramer is oil. With the price of oil falling and threatening to go much lower, some investors are interpreting that as a sign the economy won't recover in the short-to-mid-term future.

"Then there's oil," Cramer said. "The market seems to think if oil's going down, then everything should go down. How dumb is that? Weren't we almost strangled by $147 oil last year? Doesn't cheaper fuel mean more money in the consumer's pocket?"

And as the "Mad Money" host explained, oil has its own supply and demand considerations besides it future contracts. He said what was being ignored is how lower energy prices could be a net positive for companies and a good reason to invest in them.

"I mean, come on, how about having more cost savings for companies that have to spend a lot on transportation or plastics," Cramer said. "How is cheaper oil bad? Everyone just keeps pretending that the price of oil is a legitimate barometer of the world's economic health, even as we know it was manipulated going up. So how could we be bothered by the decline when we know the oil futures are rigged? Taking your cue from the oil futures is like taking your cue from whether the Yankees or the Red Sox are in first place, dead heat. It's totally irrelevant to the market."