The informal start to earnings season was led by the big banks, almost all of which issued their reports this week. Cramer noticed that in their conference calls, top executives touted how much money they can make when both short- and long-term interest rates are climbing.
“Makes sense — when rates go up, lending becomes more profitable for the banks,” Cramer said. “But just as we finally start to get some inflection in the yield curve, suddenly all kinds of commentators are bemoaning the potential consequences of higher long-term rates on the U.S. economy. How the heck is that possible?”
Just a few months ago, many of the same commentators were raising concerns about a flattening yield curve, the “Mad Money” host said. Now, they’re insisting it’s not flat enough.
“I’d say these so-called experts need to read the conference calls, but I suspect it wouldn’t matter. Why the heck would you ever let the facts get in the way of a good negative story?” he quipped.