ago i will stick with it. >> the u.s. dollar. uup. >> i'm melissa lee. thanks so much for watching. back here again at 5:00 for more fast i'm jim cramer. welcome to my world. >> you need to get in the game. >> firms are going to go out of business. he's nuts. they're nuts. they know nothing. >> i always like to say there is a bull market somewhere. >> "mad money." you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. just trying to save you a little money. my job isn't just to entertain but i want to teach you through these difficult days. call me at 800-743-cnbc. have we been down so long it looks up to me? do you know that's become the prevailing wisdom of late on wall street? a key prop the bulls are relying on to stay in the game or keep

buying stock. although you couldn't tell from the action today where the dow sank 77 points. s&p lost 7%. s&p gave back a lot of yesterday's gains. time to talk contrarianism. and whether that kind of thinking is working as a strategy. from my perspective, frankly, it's just hit or miss. that's not good enough for me to recommend it to you as a course of action. first of all, let me help you understand exactly what i mean when we say somebody is a contrarian in the stock business. there is a huge school of thought on wall street that goes something like this. when a sector is so hated, so disliked, held in such low regard then it's probably time to change your mind and start liking and buying it. why? if everybody hates something the odds favor it, at least according to this kind of thinking that a it is immunized against big declines.

the idea is if everybody hates something they don't own it, so there is no one left to sell. immunezation. i get it. i see polls that show many bears and a few bulls i'm tempted to think people are too negative. could have a snap-back rally. when there is a huge amount of money betting against the sector i don't want to be part of the negative group thing. if something good happens you can catch a real rip snorting rally as everyone switches direction at once. for example, it's become perceived wisdom that oil which has gone down $25 in a straight line just has to go lower still. why? people despise the stuff. the conventional thinking has it that oil won't stop coming down any time soon. perhaps falling to $75 a from the current $82 perch. i see gigantic bearish wagers against everything in oil and oil drilling. yet i know if we got a spike in

oil the bet would go totally awry. that said i want to talk about the two most hated sectors -- industrials and banks -- and the chatter that says they should be bought because they are so out of favor. close your eyes. buy them. first the assumption -- well, the presumption is clear. these stocks are so disliked that no one owns them -- quotes around no one owns them -- meaning the big money portfolio managers are what's known as underweighted in the group. okay? that's wall street speak. i don't like to use it. i like to bust it on the show. but it is wall street speak for managers having less percentage of stock in industrials or banks than the percentage of industrials or banks in the s&p 500. you have to understand this. this is the way they think the big money guys. you have to understand the underweighting concept. it's key to the contrarian thesis. they are always trying to beat the s&p 500. the way they can do it is to

overweight a particular sector meaning own more of a sector represented in the s&p. or underweight a sector versus its percentage in the s&p. if you think industrials are going down you obviously want to own fewer industrials or be underweighted in the sector. if you think the bets are higher you want to be overweighted or own more banks than are in the s&p. here's the rub. all the surveys show the vast majority of managers are underweight financials and severely underweight industrials. when you see severe underweighting like now if anything good happens out of the oil situation there will be, indeed, a mad dash to add to underweighted groups. that's how rallies happen. wow, i hate the industrials, but i have to buy them all. things have gont better. now that you understand the thought behind the contrarian mindset, let me tell you what i think of it. nah. i think it's wrong. i don't think it matters. it's a treacherous way to invest. we have had giant show cases of

banks and industrials. coming to new york, dog and pony show strutting their stuff telling you why you should buy our stocks. you would think it would be a terrific time to make the contrarian debt. so many managers are underweighted. something good happens you might get a tectonic shift that is brings money into a give sector. sure enough, it worked a little bit, at least in one group, the banks. but it backfired big time with the industrials. wow. that makes contrarian investment too hazardous for me to tell you to do. what happened? as soon as the industrial managers started talking about their businesses -- the ceos, what did they say? they said things were weaker than people thought. they hinted that things are so soft they can't make the earnings estimates that the analysts are predicting. the culprit? repeat after me. europe. of course europe.

so what happens? even though the stocks are underowned, many of them who did own them immediately panicked and sold. they sold them anyway. that's right. the shareholders didn't say, ooh, nobody owns these. i'll hold them. no, they said, ah, get me out! i don't want to own industrials. get me out! that's why caterpillar, 3-m, honeywell, united technologies sold off. i should say got hammered. why did the managers panic? they know europe is getting worse, not better. you will hear later in the show joy global, same deal. we can't look through the valley. it's too deep. contrarians can't take the pain. even when he we thought they would have been immunized against it. the banks told a not so hot story. unlike industrials they told a story of things getting better, not worse, because of the change in fortunes in real estate.

while banks may not make much money investing deposits or making a huge amount off loans bad real estate loans are going down. housing is turning. that's huge. managers who don't own the banks or are underweighted felt better and bought which is why wells fargo and pnc held. it didn't even tell a good story. nevertheless, i think you're playing with fire when you invest in a group because portfolio managers don't like it or have exposure to it. sometimes the conventional wisdom is right. sometimes like in bank it is conventional wisdom may be wrong. when it comes to picking stocks, i don't like to rely on sentiment. i use fundamentals. how's the company doing? industrials with european exposure won't make the numbers. things will be worse for the companies and therefore the

stocks. banks on the other hand, may not make the numbers either. but next year is going to be better. it's far better than to own the stocks of the banks that could improve the most and sell the industrials that won't. bottom line. do not worry about whether stocks in sectors are underowned and unloved and therefore should but might not be immiezed against declines. just find the stocks of companies that are improving and don't think about the ones that aren't. i bet you will make more money than the brilliant contrarians who don't realize there is always somebody who will sell the stock of a business that's getting worse. even when you think there is no one left to sell. dave in washington, please. dave. >> caller: hey, jim. how are you? >> i'm good, dave. how are you? >> caller: i'm atop grand cooley dam in washington. it's amazing. >> wish i could join you. >> caller: you were talking about pepsi versus coke.

you were leaning toward pepsi. i own coke. should i wait for them to split and see what happens then or go ahead and sell? >> you don't have to sell coke. coke is fine. i was pointing out from a relative valuation, i like pepsi. i just felt at this particular time pepsi got a little too cheap versus coke. if coke went to 70 and pepsi to 72, different story. coke is better than 90% of the companies i'm following now. roger in new york. >> caller: boo-yah from rainy long island. >> we ought to go to the grand cooley dam. >> caller: there you go. kudos for speaking out about jpmorgan and the wall street investing process. >> you don't think i will take heat for that? maybe i was out on a limb saying it was bad. >> caller: no, no. >> i think real people get it. how can somebody lose tens of millions and be fine? looks good in front of congress.

>> caller: absolutely. >> thank you for saying that. i took heat and i was worried. i have the courage of my conviction. thank you for saying it. >> caller: sure. you said a couple days ago that celgene has been a dog. what's your take on it? they have a lot of phase one and phase three trials coming out and possible approval on europe soon. what do you think? >> the ceo today announced a $2.5 billion buyback. i'm going to stand here and tell you that i want to stick with celgene. nothing's changed. great pipe. great company. sam from new jersey. >> caller: first time caller. love your show. >> thank you, buddy. where you from? >> caller: howell, new jersey. >> i'm there all the time. what's going on? >> caller: i would like your

thoughts on zynga. what do you think of the stock? do you feel it might bounce back? >> this is a tough call. it's been a complete and utter -- [ barking ] -- this thing has been in the bow wow chateau since it became public. as i said during street signs, every dog has its day. the stock is too low to sell. maybe i like playing scramble with friend sos much with my daughter. if it's profitable, yeah. it might be okay. all right. mob mentality? lemmings? don't worry about what sectors are unloved or out of favor. do this. focus on how individual companies are doing. that's how big money is made. "mad money" will be right back. >> announcer: coming up -- >> ready to ride? >> announcer: siri will be riding shotgun in millions of vehicles across america. in response investors sent shares of audio systems maker

harman off the road. don't miss cramer's exclusive with the company's ceo next. later, rock and a hard place? shares of joy global have fallen more than 25% this year as king coal tripped off his throne. could rock bottom form is foundation for a rebound? cramer talks to the ceo to find out. all coming up on "mad money." >> announcer: don't miss a second of "mad money." follow cramer on twitter. tweet him # madtweets. send him an e-mail to madmoney@cnbc.com or call us at 1-800-743-cnbc. miss something? head to cnbc.com. [ male announcer ] this... is the at&t network.

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on a day to day basis on a day to day basis the market's been getting it wrong. it's constantly over reacting to any given piece of news. if you have done the homework that can create opportunities. take harman international, the maker of speakers and dashboard

systems for high end cars integrating navigation of media and smartphone connectivity. harman sells them to automakers like audi, bmw, toyota. it's obvious this is a luxury play. automakers are trying to make their cars smarter, not just faster. for that they need harman. it's growing like crazy in china and india where members of the emerging middle class are eager to buy nancy things. if europe, the rich are different. harman got slammed with the news apple is stepping up car offerings. people worry that apple will compete with harman and since apple is a terrible competitor to have harman fell yesterday, closed down 4%. could this be a case where the sellers are jumping the gun?

we don't know apple and harman will be competitors. in the past they weren't. having siri in the dash may make more business for harman as it could make the full suite more attractive. 10% of cars now have connectivity. harman sees 50 to 60%. siri could accelerate it without taking business away. that's the bull case. we need more clarity on the issue. especially after morgan stanley laid out a negative case because of the apple announcement which is why i'm thrilled to have dinesh paliwal, chairman and ceo of harman international, here with us tonight talking about where the company is headed and whether it should be seen as apple being the competitor. welcome back to "mad money." >> jim, good to be with you again. thanks for a very good clarification. what happened yesterday was very

good news for harman and i think for the car industry. as you know, viewers should know 2 out of 10 cars have fully integrated infotainment systems. harman company plays a very responsible role with the car companies to deliver an experience which is safe and sound. it was a very good welcome yesterday. they provided a button on the steering wheel so you can press it and get access to siri and bas basic basic operability. we have integrated apple smart device including siri in the bmw which will be launching in two months' time. we're pleased with that. we see apple as a collaborator

not an adversary. >> there is no accounting for what analysts do but why did morgan stanley say you're the loser. that this is apple gunning for harman? >> i wish i could say. people should take more time than two hours writing a quick report. the fact is today only two of ten cars have this. 87% of the interviews done by car companies and harman would like integrated systems but they can't afford it. so harman coming in, with our help making it more aware this is the feature functionality people can have would create need. our $16 billion auto backlog would multiply to 32 or three times. so in five years' time, my personal gut instincts and the research validating it that integration of such systems like we do would be up to 50%.

the rest of the 50% of the new cars would have basic integration which will come from smart devices, not just apple. with android, nokia, blackberry. by the way, we are integrating all of them. it was misunderstood by analysts. however the institutional investors, index fund managers found a great opportunity to buy harman. >> dow jones comes out to say harman shares fall after apple shows map service that could hurt harman's largest unit. can they replace you for map service? >> actually they don't replace. we buy map data from two companies. google came out and some said it might be a difficult time for harman. we are integrated google maps and google earth in our system and our business has grown 20% in the last two years every quarter. apple doing the same thing gives

us more choices to choose from for the map data. good thing to have more choices. it creates better competition and allows us to bring system prices down so more people can afford the embedded system. safety must not be forgotten. we bring in dozens of things to produce an environment which is safe and sound. that's what car companies promise to the car buyers. >> one last question. should have been the first one. how's business since the last quarter? a lot of people worried about europe. car sales are okay in the united states. picking up in china. we're always worried about europe with all the high end companies that are european manufacturers. >> europe could be a concern for some commodity players. harman continues to enjoy strong growth. we sell about 35% of the revenue

from europe. 70% of that gets consumed in germany. 30% out of that gets exposed to china and e mernling markets. we are having a good quarter. bmw placed a reward for next generation infotainment. the future belongs to full integrated and embedded systems together with hand held devices. i would do a conclusion remark. these are not mutually exclusive. we are here to see the handheld devices and fully integrated systems to co-exist. don't forget about jbl, surround sound systems are necessary even for siri to deliver the message. >> you're right. dinesh paliwal, thank you for coming on and clarifying immediately what i think were a lot of stories that were pretty much seat of the pants and not well researched. thank you, sir. >> thank you, james. all the best to you.

boo-yah! >> all right. you heard dinesh paliwal, the chairman and president of harman. remember, to come on the show and just refute the stories takes guts. you wouldn't do it, i believe, unless you know it. the whole world is slowing. but at least we have clarified this siri issue. stay with cramer. >> announcer: coming up -- rock and a hard place? shares of mining equipment maker joy global have fallen this year. has king coal tripped off his throne? could rock bottom form the foundation for a rebound? cramer talks to the ceo to find out. and later, win, lose or flawed? don't miss cramer's take on how jamie dimon did while getting grilled on the hill today. what he has to say may surprise you. all coming up on "mad money."

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lately certain segments of the market like the stranlds represent a game of limbo as in how low can they go? take joy global. people view it as a classic cyclical stock. one that does well when economies are booming and gets crushed when the global economy slows down. to make it worse 60% of joy's revenues come from coal mining which has been hammered because of falling demand and slowing of the world's economy. this is a tough time to own joy global. stock down 27% for the year. up 40% from the highs in february. how low can joy go? last time commodity prices collapsed and the global economy slowed to a crawl in 2008-2009 joy global lost 70% of the value. the stock could be cut in half. this company is in better shape than it was in 2008 despite the doom sayers out there the current situation isn't as bad as the great recession. joy global reported less than

two weeks ago on may 31. while sales and earnings were better than expected the bookings declined over year and the backlog was down from january. those the key metrics people use to develop whether they should own the stock or not. company lowered the full year guidance with management taking a down beet tone to the point they are shifting to cost cutting rather than growth. that got slammed falling more than 5%. with joy global down over 40% from highs stock valuation near all time lows in price to earnings and price to book value? maybe it's time to wonder if joy has been overly punished. let's take a closer look with the w mike sutherland. get a read on the latest quarter. welcome back to "mad money." >> thank you, jim. thanks for having me. >> i think a lot of people have been trying to figure this out. how much of what's going on at joy is cyclical? you get cold weather, a pickup

in the world economies and things snap back. how much of it is secular. too many people are phasing out coal. that's an important product line for you. >> if i can answer that question in two different market segments in the u.s. we have seen a significant decline in coal burn and a significant decline in electric power generation. we believe the demand for coal is switching to gas because gas prices are low. we think that's temporary. under current conditions we'll see a hundred to 110 million tons of coal production come off line in the u.s. we see most of it come off line. we think there's been an adjustment from a production standpoint. most of the excess power generating capacity in coal fired units. a as the economy recovers, weather patterns go back to normal we'll see more coal burp that be gas burn because of available capacity. in the rest of the world the

markets have continued to be strong for us. we have seen slowing in new projects coming into the pipeline just because the global economy is starting to stagnate. we are not seeing the need to rush the next project in. customers aren't cutting capital plans. they are working on the projects they have in the pipeline either under construction or in planning. the balance is that the international markets will serve us well and help to offset the softness in the u.s. market. we believe there is more upside potential than down side risk at this point. >> last week we had the ceo of american electric power talking about how he would like to maintain a good presence but the epa is on his back not to do it. i'm sure other utilities are in a similar position. is it possible this administration or the epa is so anti-coal it might not come back at all? >> out of the decline numbers we have seen in coal demand in the u.s. market we think about

somewhere between one-fourth and a third of that is driven by regulatory requirements and plants that were retired early to meet future regulation standards. two-thirds is driven by economics. today the gas producers aren't making money at $2.50 gas. the gas prices need to go up to provide the incentive to continue drilling programs. we see about two-thirds of the market decline driven by economics and weather patterns. poth of those we think are recoverable. >> i want to try to distinguish and you helped me between 2008 and now. you said there was a lot of demand for projects but credit wasn't available. do you think the same credit contraction could occur n if greece or spain goes down or do you think credit will be plentiful no matter what? >> well, our customer base is working off self-generated cash. credit comes into play at the

consumer level and the end use level for commodities. we are seeing slowing in the end markets today because of credit conditions driving a higher level of patience among our customers to bring the next cap-ex project online. we are seeing a slowing but it's indirect rather than a direct effect. >> where is the biggest risk. let me bring up china. they are still opening up coal plants. they haven't scrapped those. if you had to look around the globe, where is your biggest worry and what could be your biggest snap-back? >> certainly the emerging asia. it's building the prepond reynolds of power building capacity today. we have the equivalent of 345 gig watts which is half the u.s. capacity.

we see the markets with tremendous upside. still relatively low in their stage of industrialization. we see the upside out of the markets now. china is showing better statistics. the housing prices bottomed and started back up. purchasing manager's index is moving up. we see fixed asset investment in may. we're seeing positive indicators, at least indicating that china is bumping along the bottom. we are not saying it's starting a recovery. it is bumping along the bottom. >> your stock continues to go down. you do generate cash. what's the best way to show people this is not a secular decline but a cyclical bump and they ought to be in? >> the best way is to look back at 2008-2009 and to 10. during the recession which drove our rates down significantly we were able to use a high percentage of after market. today we generate 60% of revenues from after market which is consistent with production

rates, not expansion rates. long backlogs. they were 12 to 14 months. we use it in eight, nine and ten to level out revenues. we can do it again today. we don't see the down side in the market today we saw in 2w0u89. the market is flattening for a while. we don't see it dropping like it did then. if we can flatten revenues and increase earnings in a period where the economy was in deep recession we can perform well during these volatile times. people misunderstand us and the stability we have in our business and misread it as a cyclical when in fact we are far from it. >> i agree with you. people get skittish and they can't think straight. thank you for coming on the show, mike. >> thanks, jim. >> as youed heard from the top of the show and now people are jittery and they are not willing to look through the valley.

there will be a time when joy does better. can you last through it? if you can, probably the time to buy. stay with cramer. >> announcer: coming up, the clock is ticking. call cramer at 80 oh-743-cnbc to fire away at cramer on the lightning round. can he with stand your onslaught of stocks? later, how do your stocks stack up in a mystifying market? cramer makes sure your portfolio makes the grade on am i diversified? all coming up on "mad money." i went to a small high school.

the teacher that comes to mind for me is my high school math teacher, dr. gilmore. i mean he could teach.

he was there for us, even if we needed him in college. you could call him, you had his phone number. he was just focused on making sure we were gonna be successful. he would never give up on any of us.

>> announcer: lightning round is >> announcer: lightning round is sponsored by td ameritrade. >> it is time. it's time for the lightning round. you tell me a stock and i tell you whether to buy or sell. i play this sound and the lightning round is over. are you ready? time for the lightning round. let's start with scott in texas. scott. >> caller: boo-yah, jim! >> fire it up, boo-yah. what's on your mind? >> caller: thanks for having me on the show. i'm real excited to get your

opinion about chesapeake energy. i just bought some. i don't want to get burned. go rangers and boo-yah! >> first, i think oklahoma city takes it in six. nice percentage of the company. that's the best thing i will say about it. here's the deal. why own chesapeake when dbn goes down viciously almost every day and has the best balance sheet, better. i totally agree with boon pickens. i don't want to own chesapeake when i can own devin. now to lorna in california. >> caller: boo-yah, jim! >> boo-yah. >> caller: love the show. >> thank you. >> caller: can you give me your take on avnet? >> cheap, cheap, cheap. remember the stock when it was low? it's got europe and semiconductors. people will want to throw it away. it's too good of a company.

i need to go to julie in new jersey. >> caller: hi, jim. how are you? >> good, partner. how are you? >> caller: okay. listen, i have a quick question for you. what do you think of investing in snapple-dr. pepper? >> dr. pepper is terrific. they have great convenience store sales, a good balance sheet, generate a lot of cash. buy, buy, buy. now to steve? california. >> caller: this is steve with a costa mesa boo-yah! i'm calling about nabors industry. >> no, terrible. ix-nay. everett in connecticut. >> caller: boo-yah, cramer! >> wow. boo-yah. >> caller: i'm a young investor. i have cystic fibrosis. close to my heart is this

company. >> vertex. i want to be hopeful but the revised data didn't give me as much hope. we need a cure for this one. my thoughts go out to you but vertex isn't as good as i first thought. the data isn't as good. nate in virginia, please. >> caller: boo-yah from arlington, virginia. >> another place i wish i were at. what's going on? >> caller: red hat. is that the way to play open source? >> mr. white hurst told a good story over and over again. the company goes down because people get nervous and the stock spikes. then it goes down again. why? people get nervous. be careful. but i like it. ted now in arizona. >> caller: i'm honored that you're taking my call. jim, with so much bad news factored in, is walter energy a

buy or a falling knife? >> people keep trying to rumor it higher. there is too much take over versus earnings. i don't want to touch it. the end of the world guys have big mind share. wow. end of the world. i'm not buying the end of the world stuff. i think there are a couple more days yet. john in florida, please. >> caller: good evening, jim. i hope you're well. >> doing okay. how about you? >> caller: i'm good. with the oil stocks speeding down at a 9% dividend what do you think of sdrl? >> this one is over extended because of the dividend. i don't care for the stock. i like ensco. every single day stephanie linke, you see her on tv. we go over it and say, how much lower can it go? it's better than sdrl. kevin in michigan, please. >> caller: hey, jim. looking at emerson network

power, emr. i like the analytics of the stock. you know, and the pe ratio, good yield. they're trading below the price targets. >> this is a terrific company. this is what i talk about when i say the industrials are hated. people are fearful of the next quarter. they are not going to take a stand. at 4%, emerson, i will buy it. it's at # 3.5 now. not low enough. that's the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade. >> announcer: friday, family time. and dr. cramer is making house calls. >> i just want to make you money. >> announcer: mad money, family affair, 6:00 and 11:00 eastern on cnbc. you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade.

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over the last few months, investors learned they just don't have the stomach for the volatility ruling the market of late. boy, they just panicked. last few days alone have seen swings of 1% in either direction. to cure the nauseous feeling you have on some days, remember when picking stocks the importance of

doing your homework. focus on the fundamentals and make sure your eggs aren't in one basket. that's why we play am i diversified? you call or tweet me @jim cramer. i do the earliest tweet there is. tell me your top five and i tell you if you're diversified. let's start with @tpj99. he tweets, long time listener, first time tweert. a big l.a. bah, bah, bah, boo-yah! am i diversified? jnj, ed, disney, gold, and joy global. let's look at this. i have to tell you. my first take on this is that it is completely diversified and my second take is i really like most of it. i am worried about part of it. let me explain. j & j is doing some

restructuring. it's terrific. bob is doing a terrific job at disney. con ed is utility. doing great. joy global makes machines to mine and rangold is a minor. but this is coal and that's gold. so i will say not mining. this is coal. this is drug, entertainment, utility. i'm blessing this portfolio which he entered. lorette. >> caller: hey, jim. thank you. i'm learning so much from the show and the action alert e-mails. >> you're kind. that's the charitable trust stephanie link and i run. what's up? >> caller: i would love to hear your recommendation on how to diversify. these are my top five holdings. exxon, boeing, united tech,

royal dutch shell and bp. >> let's go to work here. united technologies, 11% dividend boost after the close. i like that. boeing. united tech makes engines but they are diversified and i'm okay. boeing had a good presentation the other day. aircraft. exxon, largest oil company. uh-oh. i have one, two, three. jooint oil companies. bp and shell. royal dutch. i'm going to keep royal dutch. i like the yield. get rid of exxon and add a health care company. why not j & j? i just praised it. let's be consistent. and get rid of bp. we'll go into something like con-ed which we praised. con ed, jnj. lose a little bit of the yield but you pick up on the diversification. ♪ hallelujah >> now to avi in new york.

>> caller: big chinatown boo-yah to you. a shout out to mott street. i have apple, new castle, kodiak oil and gas, at&t, netflix. >> interesting portfolio. we love chinatown. all right. real estate investment trust. that's actually a financial play. i don't really like those. i'll put it out there for the category of diversification. at&t, 52-week high. what's not to like. apple the greatest technology company of the age. kodiak, i saw an okay report. netflix. is that the same as apple? sn no. it's its own animal. it ain't kodiak. we have entertainment, oil, telco, tech. bingo!

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jamie dimon do jamie dimon do well or did he do badly in front of congress today? frankly, i don't care. i don't care how well or badly he's doing running jpmorgan and i'm steamed about the mammoth trading loss his team racked up in london. a firm can make a loan to a

client that blows up. that's the cost of doing business. a firm can make a wrong bet on the direction of the market. it's something the bank has every right to do and they do it all the time. i don't like fit the directional bet is out of synch with what the firm is recommending to clients. jpmorgan has been the most precio prescient firm in the world. they have stayed away from everything. stocks, bonds, you name it, that's in europe. why was the chief investment office betting positively on europe though some say it was a hedge. a hedge against what? intelligence? did the chief investment office believe jpmorgan was telling the wrong thing to clients? maybe. shame on the internal investment management team to bet against the best advice the firm was giving to clients. if jamie dimon paid attention to his own team's advice he would

have shut it down ages ago. the big thing people don't understand because they never worked at one of the institutions is a loss that's a rogue loss, a mistake or it goes against the firm rules isn't something that can be condoned even if it went the firm's way. if it goes against the firm, people who made it should pay. when you made a mistake at goldman sachs you cost the firm money, made good on it when it was a trading loss. we had a trading loss that didn't fit the rules. i had my pay docked $27,000 for a mistake i made. who else should pay for it? the shareholders? honest mistake. buy up 50 thousand shares instead of the 5,000 the client wanted. the fault was with me. made good. brings me to the big outrage. why i don't care if you think jamie dimon won or lost. sure, he didn't do as badly as others.

wow. somebody or somebodies cost the shareholders billions with a rogue order. they may not have enough money to make good on the error and they don't have the money to make good on the shareholder losses that came from the error that turned out to be mammoth. everyone involved made immense sums working at the bank taking home huge bonuses including the ceo. dimon said there could be clawbacks where money is returned. however the idea that jamie dimon came out a winner? who are you kidding? you're in front of congress because you did something wrong. you were wrong when you walked in and you're wrong when you leave. it really is as simple as that. stay with cramer. recently, students from 31 countries took part in a science test.

the top academic performers surprised some people. so did the country that came in 17th place. let's raise the bar and elevate our academic standards. let's do what's best for our students-by investing in our teachers. let's solve this.

in that time there've been some good days. and some difficult ones. but, through it all, we've persevered, supporting some of the biggest ideas in modern history. so why should our anniversary matter to you? because for 200 years, we've been helping ideas move from ambition to achievement. and the next great idea could be yours. ♪ seconds away on "the kudlow report," senators may have fall b over jamie dimon but i believe the volker rule is going through and it should. mittmentum for mitt romney. we have the new numbers. and another decline in retail sales at home. i am still troubled. we are headed for a global recession. hope i'm wrong. but "the kudlow report" is moments away.