Jim Cramer: ‘Banks will continue to underperform’

>> the defining issue of the presidential race, so how is wall street responding to a second term for president obama ? let's turn to jim cramer the host of " mad money " on cnbc . good morning to you

>> good morning, savannah.

>> when the markets open, do you expect reaction that will be discernible that we can trace to the election?

>> not that radical. we did go up yesterday. a lot of what's been going on is that there's a sense that there's a devil, you know, on wall street , president obama , and an angel you don't know, and i think that's wrong. i think there's not going to be that much difference between whoever won versus the fiscal cliff is what will really impact wall street .

>> the devil you know versus the devil you don't and wall street likes certainty and there's not a lot of certainty. we're facing spending cuts, potential tax hikes. what do you think will happen and how do you think that uncertainty will be a drag on the economy?

>> well, i think that the unknown says, you know what? don't do anything here if you have an international business . better to do something in asia. don't hire here, hire in mexico. don't start a new business because it might fail, much more odds that it will fail, and certainly i hate to tell people to change their portfolio, but in a taxable portfolio, not an i.r.a., you're going to pay a huge amount in dividend tax , huge, very bad.

>> the president has campaigned on the fact that he wants to roll back the bush tax rates for the wealthiest americans , something republicans oppose. we'll see how it shakes out. with the economy not in recession but in recovery, a fragile economy what, would the effect of a tax hike be?

>> i think this is a moment where we still have very high unemployment. still trying to get people to hire other people, and if you get a tax hike, you just don't want to do it. it's just better to wait, and that -- that waiting means no decline in unemployment.

>> game it out for me. there are sectors happy about the results last night and sectors of the economy that will not be.

>> well, what's been working is housing, and there's a sense that ben bernanke , the fed chairman, has kept rates low. housing continues to recover. retail continues to recover. the banks, no. i was listening to elizabeth warren , represents a particular kind of style against the banks. the banks will continue to underperform and continue to pay more taxes and certainly more regulation.

>> and the president has had a rocky relationship with business. what can he do in the next term to repair that?

>> a lot of people are saying he'll suddenly take the calls of ceos. nothing that tells me he will.

>> cnbc 's jim cramer , host of " mad money " on cnbc . thanks