foss fates mosaic. >> guy. >> basking in the glory of the victory, mel facebook was higher today. fb. >> back here tomorrow at five fo >> "mad money" with jim cramer starts right now my anything is simple -- to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc

or tweet me @jimcramer why does the market keep plummeting the dow sinking another 546 points today the s&p plunged 2.06%. nasdaq lot lost 2.15%. there are two ways to approach this kind of issue you can take the macro, or top down view where you're looking at big aggregates or take the micro, or bottoms up view where you listen to individual companies and piece together the comments in a mosaic right now, there's a ton of tension between the two. the federal reserve cares about the macro, anything that tells them about the totality of the economy and based on that, our new fed chief concluded that business is so strong, that it can handle a series of rate hikes into 2019.

but the myrow, icmicro, after rg scores of company conference calls and presentations, the micro, makes me think that the economy has already peaked let me give you an example this morning, we interviewed my old partner, larry kudlow. he told us a story about a booming economy, a smashing success, boosted by the tax cuts and deregulation that's a top down view that's rosy but i stepped back into my old role where i approach things from the bottoms up. that's the way the show worked i would speak to anybody that i can to glom on as much information, to get a better forecast for the next three to six months than the data might lead you to believe. my view -- what larry said has been true. notice has, has been true. but i fear it's no longer true and will only get worse, which is why i agree with president trump that the fed needs to tighten less aggressively, even though he probably shouldn't

have said that in public, because he's making it harder, not easier, for the fed to assert their independence. it's hard to do when the president is hammering everything the macro guys will tell you that my approach is anecdotal, not empirical. it's just a bunch of disconnected stories that don't mean anything, even when taken together i think that's misleading. if i told you hey, we sell a lot of corona at my joint in brooklyn, so corona must be a huge seller for constellation brands, so we should buy the stock of constellation brands, that's what i call a bo bogoindustbogocity what if you talk to every bar in america? then you have empirical data

when you look at the economy empirically right now, you see real problems. so let's list everything that's slowed, that has slowed, okay? and in some cases slowed dramatically, because this is what has me worried. by the way, as someone who wants stocks to go higher, and you know that, because i want people to be wealthier, it would be great if the white house acknowledged some of this weakness you can't say the economy is great, but also the fed shouldn't tighten. it's got to be one or the other. but let's lay out the facts. first, we have a definitive slowdown in the auto industry and it's going to get worse. we know that because ppg, which makes the paint for so many, told us this week in a hideous preannouncement, it would followed up by a company that makes chemicals for cars, trucks, tires, including consumer products. my sources within the auto industry are good and the auto parts businesses are good, too and they are saying this was a

bad month, that's empirical, ugly second, housing is either pausing or down for the count. it's what the largest home builder in america told us i've been following lenar from the old days so we're talking about 30 years of following them and knowing how right they are third, many people who are clued into the data tell me that micron, the big chipmaker, is still not doing well i'm not sure i agree, but if they're right, that's worrisome for the whole semi conductor complex. fourth, my favorite leading indicator in the world has always been, even in '87, the liner board figures, that's the corrugated stuff that you use to make packaging containers.

we always knew there was a slowdown coming when you had to cut price to move corrugated that's what is happening right now, which is why international paper keeps plummeting fifth, the stocks in the chemical companies are getting annihilated, because the chemicals used for plastics are not moving empirical and ugly sixth, while the rails are not just -- i would not say that the rails are coming off the rails, but in the last few weeks they have noticed a serious deceleration in carloads we always have to stay close to the rails. commerce is all about transportation this is why you need them. the stocks have been going down. seventh, the luxury goods market has been smacked because of weakness in japan and china. i've made a bunch of checks and

china has cracked down on those who imports luxury goods could the chinese market be, let's say, slowing big or is this simply closing itself to imports either is terrible for the global economy that clammers for that big market. number eight, in many parts of the country, construction has become expensive because of steel. that's the problem with tariffs. this is happening. the largest nonbank lender in the space has told me this ninth, a miserable quarter last night. i know the culprits were cost overruns, but business has just gotten weaker.

th finally, there's sears. we always use the term iconic. it's true, but this iconic retailer, it's doppelganger kmart may shut down as early as monday i mean, like close that's more than 80,000 employees. not only do they do financing, they own malls jcpenney may need to restructure. i don't expect this liquidation for pennys, but we consider all these industries have been slowing. i've covered a lot of them when my arguments are anything but anecdotal and they're empirical, you see patterns. the fed is thinking about how things how they are rightnow and how they were last month i'm more concerned about where they're going to be. and it's not a positive

direction. if the fed cares about the tatttat data, i'm happy to share it with them let's see how things play out. is that so unreasonable? unfortunately, the fed is using a snapshot to gauge the strength of the economy rather than doing homework that reminds me, i'll be opining about this tonight in our special on the selloff t stay tuned after "mad money. and i know there will be some lags and cynics out there who say that will mark the bottom. if you feel that way, ome, watch. i've got some ideas. here's the bottom line, i'm not saying the fed's gone crazy or loco i don't think it's gone crazy at all. i think it's gone lazy it's a shame i would like to be positive, but i have to settle for being constructive and my empirical work says i can't be sanguine. but for now, all i can say is --

>> they know nothing >> mitchell in tennessee, mitchell >> caller: hello hitting a new 52-week in selloffs, is noelle brands finally oversold >> i was doing work on that today. i did an hour's work on it it fields 5% it's selling a lot of -- it's selling a huge number of products right now product lines to raise money but it's not doing well. so i can't recommend a stock that's not doing well just because it has a good yield. let's go to otto >> caller: thanks for taking my call i have a two-company question. i own tesla and neo. will tesla's sales be affected and with neo, do you think with big investors investing, does neo have any value >> i'm totally against investing

in anything with china we have at an economic war with them tesla, if you want to own it, bless you. me all i can say is, it's too hard. and sometimes it's okay to just say, that one is too hard for me they know nothing. i would sate for a repeat. has the get gone lazy? what a shame on "mad money" tonight, tech is agonizing here, but is it worth searching among the rubble and then i'm opening the phone lines. we'll go through this together look where the market has gone since we started and the market may seem sour, but we've got to talk to them. stay with cramer >> don't miss a second of "mad money. follow @jimcramer on twitter

have a question? tweet cramer #madtweets. send jimmen an e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. welcome to the xfinity store!

thanks janet! it's my happy place. you can learn how to switch to xfinity mobile, a new wireless network that saves you cash. ...and you can get five lines of talk and text included with your internet! and over here, i'm having my birthday party. dj fluffernutter, hit it! simple. easy. awesome. ask how to get $200 back when you sign up for xfinity mobile and purchase a new samsung phone. visit your local xfinity store today. all right. this selloff, i admit, horrifying the average crumbled like the

french army in 1940. but the worst damage, it's in the nasdaq, which plummeted more than 4% yesterday and 1.25% today. that's the right trajectory, but all people want to do is talk how bad the tech stocks are. this rained on the just and unjust alike amazon, my favorite large position has dropped 8.1%. sales force lost 6.2%. you know the company is doing well what made this particularly jarring is that there wasn't an obvious reason why techs should get hit so much harder than the rest of the market it's not like they were doing much worse than expected i got the pulse every day of the company, but that thing -- tonight i want to give you my tech damage assessment i want to help you understand what happened, explain what to

do next. this has much more to dochanicsy management business than what's happened at a sales force or an amazon many stocks were up dramatically for years. and when you get this pullback, it does more damage to the winners. people are nervous about giving back their gains, too. when they see this kind of selloff, they sell handover fist so they don't lose their year. when you survey the wreckage, everything got slammed f.a.n.g., facebook, amazon, netflix and google, dropped more than 5% yesterday. thanks to the recent week, they have come down from their highs, from 14% to 30%. both facebook and netflix are in bear market territory. facebook seems to want to do better and that's because of my checks

say the advertising business for instagram has held up. i'm not saying pull the trigger, but that's some good news there. but to understand the extent of the damage we're looking at in tech, consider how much value has been lost in f.a.n.g facebook has shed $32 billion since the end of september alphabet lost $80 billion, amazon down $138 billion that's confidence shaking and the fed should take note other favors that we like, the cloud kings have been annihilated. if you remember last month, i said this group was due for a pullback but the market's biggest winners tend to get punished in september and october. as much as we believe in the cloud, we also know that red hot stocks can't go up in a straight line forever but i wasn't expecting this kind of a hammer.

how about the cloud princess, the smaller, fast-growing players like software, hub spot, new relic, and others? they weren't spared either, they're off 5.6% yesterday and shed 18% just this month 18% this month these are remarkable moves again, four weeks ago i told you these cloud princesses could selloff, but they would be worth buying in the weakness so are they worth buying or do we need to get more cautious now that the environment has gotten more negative? the semi conductor stocks, i've got to tell you, they've been the worst, and they've been obliterated. >> sell, sell, sell! >> when you look at the information technology stocks in the s&p 500, more than half of them come down more than 10% in october. so what the heck is going on here it's not just that these tech

stocks have large gains, or that some should not have been so high to begin with there's a reason why tech has fallen out of favor on the wall street fashion show. suddenly, everybody is worried about inflation, and inflation is brutal on growth stocks many of these formally turbo charged tech companies are expected to earn vast sums out a y few years. inflation erodes the purchasing power of the dollar and you're going to pay less for gross stocks when you expect more in inflation. i'm not trashing j. powell, there is inflation, but i don't want your purchasing power to be eroded, but that's causing the stocks to go down. we've heard rumbling that things have gotten worse in the last couple of weeks. we know there was a supply glut for western digital, but people are wondering about the higher

quality proprietary chipmakers like amd and nvidia, which is why we sold nvidia for my charitable trust earlier this month. third, people are panicking. in a panic, investors sell first and ask questions later. with all these tech stocks bundled together, it's more than likely a sell first, ask questions later. so there's the history of the selloff, but what do we do more importantly, now that the market is severely oversold, is it time to go bottom fishing in tech, which you know i have not suggested yet. just a little bit nibble today but now i've got some names. if you want to pick among the rubble, you need to be rigorous and empirical, as we said at the top of the show. okay i want you to take a deep

breath, and i can do like a plank. i learned about that and set some downside targets. find a predetermined level where you think your favorite tech stocks would be worth buying and wait for them to come to you we're going to call this "the hunt for red october," and i've got some of these stocks i wanted to give you history and context. when i looked over the hardest hit names in the nasdaq 100, seven stocks immediately jumped out at me that i've done a lot of work on and i like. auto desk, which we've done two pieces on, including an apology that i missed the last big run-up idex laboratories. amazon, self-explanatory red dead two comes out real soon intuitive surgical just got a good read on their business. expedia, that's a turn around. and intuitive.

these are all stocks riding powerful secular trends, but their stocks are down 11% 2016% just for october and i think you can start picking up -- pick one one that you're comfortable with maybe you played a game for take two. maybe you have pets like i do. i once did a fund-raiser at a local hospital that showed off how it worked. into it, we used their stuff i feel really -- in other words, personal experience dictate a lot of this, and i look at this except for auto desk but i tell you, you can start buying one of these tomorrow, pick at it don't buy all at once. they all just reported great quarters or been on a role their stocks are getting crushed. we respect guessing with these we know the last data points are positive so that is the best place to go. we combine the data points with the decline in stock and come up with these and i think that they're

terrific maybe even magnificent so to speak. for the rest of tech, you need to be patient. as i've been telling you since last week, i don't want you to be a hero. last night, mario from staten island called in about zuros, it's a software company and i love this story. the stock has come down 53% since its high in june you know what? i do any even though it went down like that, it may be too soon to buy this that may be stupid, because i did like the company in the summer but we're in a very different environment, wanland with a self like this, you want to wait until the fourth day to buy. what's important that you know is on that fourth day, you'll hear better things and most important, this is a great long-term story.

so when the selloff has run its course, i think you'll be fine i'm not abandoning zuro, but what bounces first will be one of these, if not all of them all have catalysts, too. at the end of the day, there's no rush to buy most of the tech stocks these companies don't start reporting for another couple of weeks, so unless the market rebounds dramatically, unlikely, i don't know, let's see if it goes down again, you can take your time here there's no reason to rush, and every reason to wait, because fast-going tech names don't have much in the way of protection. they have no dividends they typically have no buybacks. and these need to be far along way before they're considered cheap on an earnings per share basis. tech stocks do get less expensive, it's just that some of these may not be done fully but i count this buying now after today. the bottom line, the tech breakdown has been agonizing and

upbeat but for the higher quality names like auto desk, amazon, take two, expedia, i say nibble right into the weakness. buy some tomorrow morning. just please don't put your cash to work at once. we don't know if the pain is actually over. let's go to max in illinois. max. >> caller: mr. cramer boo-yah to ya >> good to have you on the line, max. what's going on? >> caller: my stock is applied materials. i wanted to find out if the stock is over and due to a general market correction, or long-term fundamentals for the company have changed >> gary dickerson does a great job. there's an inventory backup in semi so there's withbeen pushouts. gary was very honest how short-term business is not as

good as it was if you bought the stock at 32% and looked at it 18 months, you'll be fine now we're in tax loss territory. stu in connecticut, stu. >> caller: hi, jim, thanks for taking my call what's your take on tel connectivity >> it's a good little stock and it's down so much. down 17% it's just a typical electronic component company that has a lot of different diverse businesses. and it's kind of an industrial tech name. and i think it's very good all right, guys. look, you have to start buying something, because we're too oversold and down too far. i selected these names we've done a lot of work of all of them on the show repeatedly you can check the archives we've liked every single one of them over and over and over. much more "mad money." i'm here to help, cramerica.

call me or tweet me. this market may reek, but are pounngstill buyi oprtityingopportunitie ahead? i'm sitting down with h in '88. stay with cramer

whooo! want to get a move on your next vacation? tripadvisor now lets you book over a hundred thousand tours, attractions, and experiences in destinations around the world! like new orleans! from cooking classes, to airboat tours, tripadvisor makes it easy to find and book amazing things to do.

and you can cancel most bookings up to 24 hours in advance for a full refund. so your whole trip... will be smooth sailing! read reviews check hotel prices book things to do tripadvisor what a hideous day dow was down 699 at its low. closing not too far from there i did a minute by minute take on twitter today. it puts it down 1378 points over the last two days. it's agonizing i sure don't want you to panic we came up together with a plan of attack. i got your back, good times and bad. let's take some phone calls. sarah in florida, sarah. >> caller: hi, jim, how are you? >> i'm pretty good how about you? >> caller: good. i've got most of my future down payment in a moment in the stock

market i'm down about 20%, and anticipating needing the money in about a year. should i pull my money out now and cut my losses or ride this downturn out >> this is just a management question if you need it within a year, that is -- you've got to take some out, even though i think you'll get a better day tomorrow that's a short period of time and i can't have you just give back too much money if you need it a year from now five years from now, you can take a little out. a year, you have to take some out. i don't think thing also lss who bad, but that's the way it is. roman in illinois. >> caller: hi, jim, thanks for taking my call it's an honor to speak with you. i just took 40 years accumulated, and all cash --

[ inaudible now, i did this because -- [ indiscernible -- it's unclear in the political climate will -- either way, i think the market -- [ indiscernible now i need help getting in, jim. >> there's a way to do it. i talk about this all the time you don't do anything big. look, i like to put money to work for my kids i put some of it to work here. why? because i didn't want to wait to the end of the year. so i think you do things small that's what i did. i did a little between an eighth, maybe a little more than an eighth of the money i would invest year end. if it goes down again tomorrow,

i'm going to put more in i think you should join me that's for my kids and it's s&p. i can't buy any stocks for anybody. chris in massachusetts, chris. >> caller: a big boston buia >> congratulations >> caller: i'm 32 years old. i watch every day. i love the show. i love what you do for everybody. >> 32. go ahead >> caller: so i was heavy into tech, especially paypal and square i took profit, i told most of it i'm now considering going into consumer staples, colgate, heinz, pepsi is that too conservative >> i thought about the same thing. it's very funny. i was looking at proctor, i said oh, nelson is in there and then i hit it up and it's only yielding 3.5

i thought about clorox i would rather have you build up one of the stocks you left no, i'm not going to push hard on the consumer staples, because they don't have the growth that i like so i think you start buying back your favorite techs that you take a longer term view on if you want to buy one of those classic growth stocks, i would buy a drug company, not a consumer products company, other than cheese whiz does anybody use anything that kraft heinz anymore? alex in california, alex >> caller: how are you doing, mr. cramer >> couldn't be better. how about you? >> caller: fantastic with all the craziness in the market, i wanted to shed some light.

we are currently in a bull market trend channel going back to 1932. from 1932 to 2000, there was a wave up, and from 2000 to 2009 was the abc correction now the move to this year's high that we hit, that was wave one i believe we are experiencing wave two that should put us down to 1500 before the start of the third wave what are your thoughts >> i do not use that wave analysis i've always said the same thing, if someone is comfortable with a strategy, it may not be my strategy, but if they're comfortable with it and they think it's working, if they do their homework, i bless it i'm not one of those people who says, your way is no good, you have to do it my way if that makes it comfortable for you to make choice investments, i salute you not my strategy, not my style. but whatever works for you is best look, how many years have we

gotten through this thing this we're going to do this again panic is not a strategy. after "mad money" tonight, i'm going to be on for special coverage of this market. yeah, we're putting the trucks out front. no, we're trying to come up with ideas how to make money. it's not just panic, it's profit don't miss it at 7:00. don't miss it at 7:00. stick with cramer. something is transforming and our world.. it's the longevity economy - americans 50+ driving 7.6 trillion dollars... of economic activity every year. right before our eyes, aging is unleashing exponential growth... ...in every industry. are you ready? we are. a-a-r-p is teaming up with business leaders and innovators... ...sparking new ideas and real solutions. so, what are you waiting for? ♪ ♪

our new, hot, fresh breakfast will get you the readiest. (buzzer sound) holiday inn express. be the readiest. your but as you get older,hing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.

okay on a day when the dow was down nearly 700 points at its lowest, what can work in this hideous environment? circle back to companies like international flavors as we head lower. everything from personal care products to household cleaning products, food and beverages i'm sure you smelled the stuff and tasted it. last may, the ifcio came on this show and made a bold prediction. the company announced a $7.1 billion acquisition of a company and the market hated it. but he said wall street would come around and that's what has happened before this market meltdown so let's check back with the chairman and ceo of iff to get a better sense of where the company is headed. good to see you. >> good to see you

>> you did say look, we're going to have to do an equity offering, which is amazing, and you said it would end up being priced above, because there would be so much demand, which is what happened and it went up so it's obvious that wall street has warmed up to this deal well before it closed >> absolutely. and we have closed in record time we said in may six to nine months we were ahead of time. we're happy about that, because it gives us a head start to integrate the business >> i think the cross selling, you've got to explain that to people to me it's marvelous it's such a natural. >> right now, we have the largest and broadest customer base in our industry and we have more than 30,000 customers. no one else has it and we are starting to take their natural solutions, like natural colors, or like their antioxidants to tell them to our customer base and taking our technology, which we have to show to some of their managers

already to sell to their customer base. that's the greatest value driver for us going forward >> the old consumer package is good customers, but they don't have the growth that some of these other companies that can be the next big ones that's just a huge amount. that's natural for your regular business >> 70% oftheir customers are basically small, local and regional customers >> the hot areas and when you have that kind of company, what i believe is that it's -- you have taught me that tastes are regional. so if you have a regional food company, you have a natural audience maybe they can take those tastes to another place, but that's what you need to be, just besides the gigantic companies we all know. >> it's super helpful for us and our business you have seen in particular the local and regional customers had a very good performance. >> now, i was concerned raw

material costs hitting you, too, can they stabilize, too? >> what we have seen up fort t unfortunately in our industry, areas like vanilla, where we believe it might go down a little bit, but other areas are going up in our supply chain, out of india and china, they had some issues, as well and we have to manage it. china is okay. the good news is at least we can deliver all the products to our customers, some of our competitors can't. >> can you tell me how you can manufacture a natural color? >> it all depends on your raw material and on your ingredient, and that's how you do it if you select the right ones, it becomes a natural color. next time you're in one of our facilities, i want to show you how we do it >> you have 110 facilities do you need all of them now with this merger? >> actually, we look at growth at the merger.

we look how we can grow our top line certainly we'll look what can we do with all of our facilities. it's all about profitable growth, not just cost cutting. >> there was another thing that confused me. what does it mean to be in the meat business? >> look, what they have for example, they have a lot of interesting seasonings >> like beef jerky or something if >> absolutely. and we have now, even a little bit of the b to c brand in europe we have a big hub in austria and that's where this brand is located. we have some of these thing where is we can make them really nice and the taste is unbelievable >> anti-aging, and anti-wrinkle? >> that's more for the cosmetics. >> okay. that's a good business >> it's a very good business it's one of the fastest growing businesses and three years ago, we bought a

french-canadian company and it' growing every single quarter double digits. >> do you remember in your conference last year, a fifth avenue store, i'm not asking you to name it, buttell people about what you see going on there, so people understand really some of the nitty gritty of what you do >> if you look at fragrances, that's what you might see in fifth avenue, it's much more focused towards the more premium fragrances, the artisan fragrances and that's something where we try to focus now our attention, as well. and all more natural roast essences, and we have great facilities to manufacture exactly that >> one of the stocks i bought after the crash in 1987 was iff, because you had mid to high single digit growth. i couldn't find any company that would be able to do that here we are again. we have market volatility. you're still able to do that

kind of growth >> we believe we can do it 5 to 7, that's our mid-to-long-term guidance and we are bullish that this can be done. >> it's certainly reasonable thank you so much today. the chairman and ceo of iff. a company that i started buying for clients in 1984. "mad money" is back after the break. every call is different, so the only thing that we can do to make sure that we get there safely, and that we leave that scene safely and go home at night, is train. and we train all the time in the fire service. no matter how much we train, the last thing you want in a disaster is to lose communications. without communications, we have nothing-- people get hurt. when disaster strikes, that is when

your communication service can really become your lifeline. ♪ (nicki palmer) we are constantly innovating. from a dedicated lane on our network just for first responders to cell towers on wheels. we can even fly cells in drones so communications stay up. in times of crisis, their calls go through, and they can get their job done. we know what we're getting into when we sign on, to take care of people and make sure everyone comes home safe. that's what my number one goal is.

it is time it's time for the lightning round. [ indiscernible and then the lightning round is over are you ready, skedaddy. joseph in pennsylvania joseph >> caller: boo-yah, jim. i have a question, verizon communications, vz >> buy buy buy >> i'm warming up to at&t today. but verizon is fine with me. >> buy buy buy >> let's go to chris in kansas, chris.

>> caller: ags one gas >> not bad i also like dominion by the way. debbie in nevada, debbie >> caller: hi, jim >> debbie. >> caller: how are you >> i am good how about you? >> caller: pretty good my question is i just purchased t cvs. >> this thing went down. i was surprised, the cfo left. i'm just going to say it, i think -- >> buy buy buy >> i think buy cvs mark in ohio, mark >> caller: big boo-yah to ya from ohio. >> what's up >> i would like to take down a blue color stock, alkoa. >> here's the problem, if they

don't get a buyer, the stock goes to 17 if they do get a buyer, they go to 23. so it's three up, three down for me, that means -- >> don't buy >> bob in florida. >> caller: boo-yah, jim. vodafone >> it's been such a laggard. that's something wrong there phil in massachusetts, phil. >> caller: how's it going? >> hey, phil >> caller: hey, so thanks for taking my call >> of course >> caller: my question is regarding optm >> i do not like the specialty pharmacy companies i've been off them for three years. that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade ♪ all night long...

is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, with td ameritrade. ♪ at&t provides edge-to-edge intelligence, covering virtually every part of your finance business. and so if someone tries to breach your firewall in london & you start to panic... don't. because your cto says we've got allies on the outside... ...& security algorithms on the inside... ...& that way you can focus on expanding into eastern europe... ...& that makes the branch managers happy & yes, that's the branch managers happy. at&t provides edge-to-edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & when this happens you'll know how to quickly react...

i'll keep saying this until somebody at the federal reserve gets the mess j. the economy can take care of itself it can whip inflation on its own. but you have to give it a chance how could inflation take care of itself look, on some level, markets are self-regulating. this is basics economics 101 a principle cost of all sorts of inflation is to keep your own conference call after conference call the price of crude is now coming down, because economies around the world are slowing.

it is that easy. now, we know emerging markets aren't doing well. they burn a ton of oil we don't like how much the russians are pumping but the saudis have exceeded to the president's wishes and are making up the mandated shortfall from the iranian sanctions we do have a supply problem, because venezuela is pathetic. libya is a failed state. and iraq's infrastructure is behind the times we have massive quantities of oil that we can't use in texas, because we don't have enough pipelines to take it to market at the end of the day, oil is already self-correcting. the fed doesn't need to lift a finger next, we have a consumer price index today that serves as a reminder that the offsetting forces to the tariffs and labor shortages. the cpi only increased by 0.1% last month i'm calling that quizzical i think that retailer also have to eat some of the costs of the

tariffs, not all of that can be passed to the consumer what else? think about what's happening in the residential housing market a peak in high end real estate, where the real inflation has been that's where i like it why? rising mortgage rates are working. they're at 5% now, and the lack of affordability, that's cooling overheated markets like san francisco, miami, new york and the lack of new money coming in from wealthy chinese and russian buyers, that's also cooling the high end the high end is coming down fast how about small and medium-sized businesses there's a limited point of view that says wages need to go up, but the shortage can be temporary, because interest rates have gone up too, which means it's no longer economical for small businesses to expand, to do more hiring.

they're working to keep wages lower, more name than you'll expect it will take time for labor to taper off, just like it will take time to short out the supply chain but it will happen and you don't need to accelerate as president trump acknowledged when he said they're nuts, you don't want to find out there are more than 89,000 people laid off, which could happen when seres and kmart closes on monday that's capitalization taking care of itself larry kudlow understands it, because he taught me most important is the deflationary input, which is the markets themselves bonds, that's going up anyone else notice what happens if interest rates have peaked? it's possible given the softness i'm seeing here. and then there's the stock market, which is getting crushed. with the most popular stocks

going down the hardest, more than 75% of the s&p is in correction mode. part of the strength of this economy is based on the strength of the stock market. it has a tremendous wealth effect you wipe out a big chunk of that wealth and you'll see less spending and less inflation. in short, i'm say thing selloff can be self-fulfilling homes and stocks down in value, nest egg down in value all these things are deflationary, which is why the fed doesn't need to overshoot, because the problem is taking care of itself it doesn't need help from the fed to be tame again stick with cramer.

♪ ♪ our new, hot, fresh breakfast will get you the readiest. (buzzer sound) holiday inn express. be the readiest.

don't miss what's next we have a special cnbc report. remember, i'm seeing an oversold market and gave you some tech stocks that are hugely oversold. pick one, nibble i'm jim cramer and i will see you tomorrow.

now to our journey across america. >> good eving from the shadow of the u.s.-mexico border >> you're talking about housing. >> i'm talking about employment opportunities. >> w we were there during those heart wrenching hours. ♪ >> this is a cnbc special report we are on to explain the stock market's sudden and dramatic fall and to get the best advice possible on how to protect your money. >> fear and uncertainty grip world markets, as stocks continue to spiral downward. monday, market swing as investors grapple with rising interest rates >> another red day on wall street >> this has been a rather pronounced slide >> tuesday, stocks dip and tech gets hit the hardest