Jim Cramer, the bombastic host of CNBC’s Mad Money, is predicting a stock rally if Republican Scott Brown wins in Tuesday’s Massachusetts Senate race. Here’s his monologue from yesterday evening:
“The number you need to watch is the number that Scott Brown racks up against Martha Coakley in this amazing Massachusetts Senate race…Even a few weeks ago it was a lock for Democrat Coakley. But now everything’s up in the air, and a Brown win would be devastating for the president’s agenda…particularly on health care reform, because Republican Brown has said he will definitely vote against the plan.
Brown in the Senate? That wrecks the 60-vote supermajority the Democrats have been counting on. It could spell the end for this almost year-long nightmare of a piece of health care legislation.
What does a Brown election mean…? Well, first you’re going to get a knee-jerk rally in all the so-called penalized stocks — the HMOs, the drugs, the medical device-makers. I call it “knee-jerk,” though, because these stocks have been on fire for months…It’s been clear as a bell that the health care reform wasn’t going to affect most health care stocks. That’s versus what we thought last year.
More important, though, I think that investors who are nervous about the dictatorship of the Pelosi proletariatwill feel at ease, and we could have a gigantic rally off a Coakley loss and a Brown win. It will be a signal that a more pro-business, less pro-labor government could be in front of us…How about a little bit less like the old Soviet Union? Yeah, that would be a bit more like it. Pelosi politburo emasculation!
Cramer, a supporter of President Obama, has become increasingly critical of him on the occasions when he has ventured into political conversation.