Cramer: The underlying economy is good, but fear will drive us into recession

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'I'd love to say that the optimistic universe is most likely to prevail, but the talking heads talk endlessly about how a recession is inevitable,' CNBC's Jim Cramer says.

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gave more proof that the American consumer is strong, but consumer spending could slip if concerns about yield curve inversion continue to dominate the conversation, Cramer argued.

The comments came after shares of the two retailers sprang double digits on top-and-bottom line beats and guidance raises. Their same-store sales data, the host said, corroborated what the market has learned about the consumer from other retailers such as Walmart and Home Depot. The yield curve on Wednesday, however, briefly inverted again. That happens when the 2-year Treasury yield climbs higher than the 10-year Treasury yield, which means investors can make more money on the shorter-term bond than the longer-term one. Economists use the inversion as a trusted measure to project recessions.

"When the yield curve inverted before the Great Recession, it was at the end of 2005. The stock market didn't peak until the summer of 2007," Cramer said. "That's not helpful." On the other hand, the host said that long-term U.S. bonds are falling because foreign investors are buying them up to get better returns than the lower interest rates on European bonds.

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Agar man Baap Hai To Jindagi Ki Sabse Badi Khushi Hai

The economy isn’t good. Manufacturing is a mess and people are going into debt to consume.

That’s a good one out of an issue.....

Yeah fear of Trump.🤡👺👹

yes the anti trump liars at cnbc r as dirty as they come!

Price up,can’t afford it

'You have nothing to recession but recession itself'

The talking head blaming talking heads 🥴🤷🏼‍♂️ stonks

Repeating Trump ‘s false claim “media causing recession by talking about recession “ ... nothing new from Cramer. He denied recession prior to 2008 too!

It will last ....until it doesn't

We can’t let that happen.

BULLSHIT.

Harwood and NBC are doing their best to exacerbate a rumored recession.

jimcramer Serious? You and DT have railed on a minute change in Fed rate as the only 'problem' we have. Now you say no fundamentals matter only 'optimism'? Two ends of the spectrum Jim, which do you truly believe?

i didnt know that “fear” was the code word for “gtfo - inverted curves”

Every economy is doing good before a recession.. cap ex is slowing(which will cause the companies that make those goods to shed jobs), the rest of the world is slowing(which will hurt our companies that export causing them to shed jobs). It’s not fear, it’s reality fraud

Cramer, Cramer, Cramer... then why does Trump insist on causing so much instability and fear?

It is the fear of continued stupidity in Washington by a leadership team lacking any sensible plan

jimcramer

Media driven fear. Their only hope to defeat President Trump.

In 2002 George Bush said we were losing the Iraq war because 'people didn't believe in it.' I was hoping that sort of stupidity was on the way out. Obviously not.

Good.

When?

Then stop scaring everyone, cokehead.

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