Last Thursday, Larry Kudlow hosted Jim Cramer and the two discussed the effects of health care reform on the stock market:
KUDLOW: You are saying that Obamacare will topple the stock market. This is a huge issue. Let me get your first take.
CRAMER: It is the single biggest impediment to the stock market going higher. And a lot of this has to do with what's not being talked about with how it's going to be paid. And also to what it would do to small business formation. This bill is a disaster for both.
Well, on the first day following Sunday's historic vote in the House effectively passing health care reform, the Dow Jones Industrial Average finished up 43.91 points (0.41%).
Of course, Cramer may have been referring to the long-term effects of the bill on the stock market, rather than “knee-jerk” reactions to the vote. After all, Cramer has already established he isn't any good at predicting “knee-jerk reactions.”