CNBC’s Jim Cramer on Thursday tried to explain why the deteriorating situation in Afghanistan, including the two suicide bombings that killed U.S. service members, has yet to significantly impact Wall Street trading.
The “Mad Money” host said many people have asked him why the stock market seemingly hasn’t reacted to “the increasingly tragic events in Kabul,” which is under the Taliban’s control after the insurgency toppled the U.S.-backed Afghan government earlier this month. The Taliban reclaimed power in the country as the U.S. sought to withdraw its troops after a roughly two-decade presence there.
Cramer pointed to history to demonstrate his point.
“When a terrorist truck-bombed a Marine barracks in Lebanon in 1983, killing 241 soldiers — a horrifying event — the averages barely budged. Why? Because nobody could figure out how to relate that attack to their portfolios,” Cramer said. “There was no financial takeaway for the bulls or for the bears.”
With Afghanistan, in particular, Cramer said he can only recall Wall Street reacting to events in “the early stages of the war.”
“That’s how Wall Street sees the Taliban takeover: There’s no relationship. Even as many people have asked me why isn’t there one — or, maybe more importantly, why I don’t try to find one in order to make it clear how terrible all of this is,” Cramer said.