As debt ceiling talks flounder, Cramer says lawmakers' actions will cost you

After a sour time successful Washington and connected Wall Street, CNBC's Jim Cramer warned investors that lawmakers volition inevitably outgo them wealth arsenic indebtedness ceiling negotiations resistance on.

"Get acceptable for our politicians to suffer you immoderate much money," Cramer said, referencing the earlier impasse surrounding the indebtedness ceiling successful 2011. "They wounded you then. They aren't done hurting you now. But unless you commercialized afloat clip it's precise hard to get retired and get backmost successful aboriginal capable for it to marque a difference, which means astir of america request to instrumentality the pain."

Market watchers are besides weighing the quality of the emergence of a new Covid-19 variant successful China, helium said. It's unclear whether this caller question volition punctual Beijing to enforce caller question restrictions, galore of which eased up respective months ago.

"We don't cognize if question volition beryllium banned oregon restricted, though the Macau casino stocks are trading similar it's gonna happen," Cramer said. "And we don't cognize if the psyche of the precocious ebullient Chinese user volition beryllium impacted."

With 2011's fitful indebtedness ceiling negotiations ringing successful his ears, Cramer is pessimistic astir lawmakers' quality to travel to a woody earlier chaos reigns.

"Even though we yet got a woody [in 2011] and averted the worst-case scenario, the standoff was capable to marque Standard & Poor's downgrade our government's recognition rating," helium said.

Cramer considered the merits of selling stocks earlier the imaginable marketplace swoon, but disquieted that galore volition not beryllium capable to bargain them backmost accelerated capable to spot existent gains.

"I would hatred to counsel you to merchantability and past bargain backmost later, though, due to the fact that we don't cognize if you'll beryllium capable to get backmost successful earlier the all-clear," Cramer remarked. "That said, if you deliberation our leaders are superior astir making a deal, past it mightiness beryllium worthy trying to sidestep the coming diminution — and if we're pursuing the 2011 script, there'd beryllium astir a 12% diminution from present until the bottom."