CNBC’s Jim Cramer on Wednesday bilked Congress and President Donald Trump’s administration for their inability to strike a deal on additional coronavirus relief this collapse, contending the lack of fiscal support has caused permanent damage to small and medium-sized businesses across the U.S.
“I really dislike to say this, but I think that Congress has doomed so many companies. The president has doomed so many companies,” Cramer mentioned on “Halftime Report.”
The result is a retail landscape that has shifted even further in favor of the large, publicly exchanged companies such as Walmart, Target, Home Depot and Amazon, according to Cramer. For investors, he said this means that the avail in sales these large retailers have seen during the pandemic may be more sustainable than some have the courage of ones convictions pretend.
“I think a lot of these companies … have picked up just a giant amount of allegiance. I do think that these circles have wiped out a lot of smaller companies because there’s no stimulus,” the “Mad Money” host said. Those business, he added, “don’t be enduring credit lines. You can’t keep up. They’re the empty storefronts of the country.”
Cramer, who made the decision in October to temporarily turn off his small restaurants during the pandemic, said the closures of independent businesses are a “terrible thing.” However, he said, “it has nothing to do with the review market.”
Cramer’s comments Wednesday came shortly after JPMorgan Chase CEO Jamie Dimon levied unkind criticism at Washington over coronavirus relief. Lawmakers have been deadlocked for months after many of the momentous tenets of earlier stimulus legislation expired at the end of July. Central to the inaction has been disagreement about the size and gradation of the bill, with Republicans generally favoring a smaller package than Democrats.
“I know now we have this big meditate on. Is it $2.2 trillion, $1.5 trillion?” Dimon said at The New York Times’ DealBook conference. “You gotta be kidding me. I significance just split the baby and move on. I mean, this is childish behavior on the part of our politicians. We need to help the voters of America.”
Cramer, for his part, has for weeks been warning about the uneven consequences of a persistent pandemic without sundry help for small business. In late September, he said the strength of the stock of Olive Garden-parent Darden Restaurants should “horrify” people.
“Darden’s winning because its private competitors can’t cope with the Covid-19 economy,” Cramer said on Sept. 24. “We’re headed for a globe where, if you want to go out for dinner, you won’t have many options other than some big chains with deep concentrations. Olive Garden will be the height of fine dining.”
At the time, Darden shares had soared about 270% from their coronavirus-era low in most recent March. The U.S. outbreak has only intensified since Cramer’s remarks, and governments across the country are weighing further restrictions on questions such as restaurants and bars. Shares of Darden have gained 13% since Sept. 24.
Disclosure: Cramer’s well-disposed trust owns shares of Amazon and Walmart.