well. >> i agree we're not at that stage. may get there. >> thank you very much for joining me tonight that's going to do it for us on "options action. reminder, we're back next friday, 5:30 p.m. eastern time as always. mad money with jim cramer starts now. my mission is simple, to make you money i'm here to level the playing field for all icnvestors there's always a bull market somewhere and i promise to help you find it. mat money starts now hey, i'm cramer. welcome to mad"mad money." welcome to cramerica other people want to make friends, i'm trying to save you money. my job is to put crazy days like today into context call me 800-743-cnbc or tweet m me @jimcramer.

we witnessed the second biggest bank failure in history that created fear as the day went on hence the dow losing 345 points and s&p falling 1.45% and nasdaq tumbling 1.76% the fear actually makes sense. i listen to some of the smartest people all day and concluded not even the fed knows what happens when the most important bank in silicon valleys gets seized by the fdic as what is happening today, yeah, we left here with no real idea whether it would be contagion. we don't know. at first, there was strength in the market with the weakness contains in the pranks and techs as in which banks will fall and which tech stock will get hurt because it has money there which startups will be crushed we found out this evening that roku had 26% of the considerable $1.9 billion cash with this company. and we know there is never just one cockroach in a bank's kitchen. who knows, maybe there are

companies that trade now that will come public that are just plain done stick a fork in them we got a nasty selloff in banks, techs, cyclicals because who knows where that money is and maybe a recession could be caused by this bank. yeah, failure. what other companies kept their money in the bank? it's all unknown why don't we do this why don't we do something that's not rash but rational. let's step back for one moment there is one key way in which this bank failure could actually be good news for all of your stocks i don't hear many people offer this feud today. sure, any institution remotely connected to deposits, borrowers will be hurt and big time. there will be major losses but with those losses, i do not see this as a systemic problem i see it as a cool problem, we got here is a failure to communicate. down play getting killed on the

bond portfolio each time the fed raised interest rates and didn't signal too many bad loans backed up in stock, in startups that haven't been able to come public because there is no appetite for ipos when the fed is tightening aggressively it should have been raising hundr money like crazy for months like some of the other banks and seemed frozen during the headlights, pretechnding things were okay that brings me to the fed question can the fed keep tightening crazy before they know how bad the contagion might be i don't think that would be prudent. can the fed raise interest rates dramatically it doesn't know what can happen now that they have blown a hole in fact most vibrant and viable part of the u.s. economy, tech i don't think so of course, there is nothing wrong with the market's negative reaction the last couple days. bank failures are bad especially when we have no idea how extensive the collateral damage

will be. nothing worse than the collapse of a highly indebted banks jay powell wants to hit the brakes but doesn't want to cause an 18-car pileup. >> house of measure. >> house of pain. >> look, even though the market was right to sell off, it was wrong for everything to get hit. the defensive recession proved stocks should have been bought in today's weakness, not sold if you think a recession is upon us the cyclical smokestack stocks might not need to be sacrificed in the order of price stability. what is bad today actually may be good once everything is sorted out but won't be sorted out this weekend i do want you to stay the course we bought very small for the charitable trust today and probably buying big on monday. when we come in, though, i think we'll learn that the fallout from svp can retail a huge chunk of the growth economy.

those guys were in business with so many venture capitalists and big tech firms but also stay the fed's hand that helps so many other stocks at the very least, i doubt we'll get more than one more 25-point basis rate hike. if we knew that, we would be so happy. they don't want banks failing due to their failure to communicate. similar to what happened to pen square roughly 40 years ago. this was a reckless bank in oil and oil collapsed and took penn square with it that bank failure had huge rep cushions for the financial system as it took down another storied contin anyone 'til the easiest way to prevent it is slow the pace to the rate hikes. i think powell remembers penn square as oil like tech now. he doesn't want to repeat that error. it was terrible. let's not forget, this morning we got a weaker non-fpharma

payroll report so to make it clear, the collapse of svb has huge ramifications beyond the tech world but i actually think the biggest impact is it will be the thing that keeps the fed from wrecking the entire community because the part of the economy is rozen it's short term bad but longer te term, i will tell you very, very good unless you live or work in the blast zone or you bank at silicon valley bank. with that in mind, let's go over the game plan for next week. even though i made this whole argument how the svb failure will make the fed back off, you know, maybe something that we're not thinking enough about the cpi could hurt us. but if we get a weak number, a weak reading if the cpi's number is at all cool, you'll wonder if the fed will even raise rates at all when the open market

committee meets on march 21st so that's the most important macro number of the week i want to listen to lennar the conference call. these are some of the most thoughtful people in all of the industry, all industry not just home builders and let us know if there is any break whatsoever in housing prices see, the fed is frustrated by the inability of home prices to come down and more bad news today when bond yields wentdown in reaction to the collapse. that means mortgage rates will fall so lennar might be actually bullish for the housing business but not so good for the fed. score one for the macro bears, the micro bulls will keep making money in the stock wednesday is important action comes from adeebo. this is a company trying to make a deal that could keep the creative cloud offering creative the regulator haves been fighting the merchant level at the same time adobe could be challenged by chat gbt which has the potential to be real bad for

copy writers who are core users of adeadobe's product and we he from five below. this is fun, inexpensive retail, all the kids love it in part because of the low price points. by the way, it tends to trade with ulta that had a terrific quarter yesterday. hey, speaking of super growth, dollar general reports on thursday and, you know, this is a favorite of wall street, which seems to be chantransfixed on t trade down a strong numbers shows a cash strapped consumer, which means another aero in the bank hike. after the close we hear from fedex. until today, the stock seems unstoppable but got stopped in its tracks and some investors pulled out of the cyclical betting jay powell will keep tightening no matter what. i find that unbelievable now that silicon valley is going

under. it can't tighten and not tighten in the same day. finally on friday we get a slew of manufacturing data that might not reflect the post silicon bank valley world which is a different world. if these numbers are hot, they may not matter after what happened today on the other hand, maybe jay powell will say man, this economy is red hot despite the svb going under situation. bottom line, the collapse of silicon valley bank is one more double edged sword in a market that's just full of them russell in new york, russell >> caller: hey, jim, how are you? many thanks for everything. >> i'm okay, russell, how are you? >> caller: good. quick one, expedia, i would like to know if this is a good time to get in the stock or hold up >> i have to tell you, i genuinely believe if you want travel right now, i like airbnb as a way to be able to go around the world very inexpensively let's go to mark in california, mark >> caller: hey, jim. i have a technical question about a stock that both of us

love it's fortio they came out with an offering of 8 million shares of the close a common stock and they offered it at a place of $21.05 which is great, however, my question is they said that it's not going to be day diluting current shareholders. >> that stock existed but not for you to trade what does bother me, i got to tell you, the timing of that why didn't they hold off the market got bad it must be a better time to wait to be able to off load the stock what is called a synthetic secondary transaction. hard for everyone to understand. the collapse of silicon valley bank is one more double edged sword in a market that's full of them on "mad money" tonight, clean harbors is in the business of cleaning up a host of emergency spills so does the company have what it takes to clean up your portfolio in the face of

volatility don't miss my exclusive with the ceo and wall street didn't agree with me until the end of the day. i'm digging into the crazy action to give you my take and with fierce running banks, how can that impact a company like reality income, letter o i'm learning more about the story with the company's top man so stay with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question tweet cramer #madtweets send jim an email to madmoney@cnbc.com. or give us a call at 800-743-c ns nbc. misso miss something head to madmoney.cnbc.com.

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after a messy day for the market, let's talk about something clean. cramer fav clean harbors, the largest hazardous waste with an industrial cleaning and pay maintenance business they are the ghost bust fers fo it when there is a spill, who do you call clean harbor decontamination efforts and most recently, even the horrific train derailment in east palestine, ohio although that's a federal government led effort. i guess you could say i am for good reason. at the end of the month a new era begins for the country the founder and ceo taking on a role as the company's executive chairman and chief technology officer. he also just came one a great

book on his career founding this company by the way with next to nothing turning it into a $7 billion business so before he steps down, let's check in with the founder and chairman and ceo of clean harbors for let's call it an exit interview welcome back to "mad money." >> oh, it's so good to be with you, jim thanks so much for having me. >> you did a terrific job. i want to know why now and why take on the title of executive chairman as well as chief technology officer >> okay. well, you know, we've had a great team we've been working together for a long time as a team and i really wanted to keep that team together and realize that we'v hit $5 billion in revenue and a billion dollars of ebita and delivered great safety results so we hit great safety results and succession planning and really wanted to move forward with new management team to take the business to $10 billion and beyond and i think this is going

to be a terrific opportunity for us to do that and i've spent a tremendous amount of my time on helping develop the technology and the systems that have supported the revenue growth that we've had and i want to continue to help in that way anywhere i can and help on strategy with acquisitions so i want to support that team but it's really time to let the -- mike and eric take over and run the business moving forward. >> all right look, in your terrific book you spent a lot of time talking about leadership and getting your team really up to where they have to be but you spent a lot of time on 9/11, on deep water rising, and on hurricanes and more and i thought maybe you could tell our viewers which are the most difficult ones which are the most memorable and which are the ones you felt only clean harbor could do? >> well, certainly some of the work that we've done most recently with covid over 22,000 responses that help our customers deal with the covid

outbreak dealing with the bird flu back in 2015, 9/11 was certainly a major undertaking to help first responders there so i think the whole idea of really recognizing our employees that are out there doing the every day is really part of the book and i think it really is what makes clean harbor so unique as being the premiere emergency response company. >> right okay so doing the do and what you say in the first couple pages is really gripping about really being hacked yourself. when you're doing the doing on ground water, this one has stumped everyone and yet, you feel that there is someway you can actually help 3 m clean up a situation >> absolutely. i think both whether on site handling ground water contamination or to be able to safely remove contaminated soils

and debris that need to be treated, we've shown we've done the studies and can handle that and perform at the levels of clean that are going to be needed we certainly need the government to have better regulations around what standard they want to use for p fast cleanup. i think in the long run that's an opportunity to really help our customers deal with that. >> that's very good to know. that is really crossed 3 m stock. next door to me, i got the canal and i was hoping you would come down and cheap it up and out of nowhere they announced it as a super fund site. i want to ask you if clean harbor is in many different cases and wasn't a super fund site run by business, wouldn't it be cleaner rivers, cleaner ground water and cleaner sites all over the country does it get in the way does a designation of super fund site get in the way of your work >> i would say that they're part of what we do for companies that

don't take care of those issues or there are issues that go back 30, 40, 50 years the government recently reauthorized and put more money behind super fund so we actually think we'll start seeing more movement we studied them to death let's go and do the doing. let's go out and clean them up and but i think when you look at today's industry that produces hazardous waste very responsible, the right technology is available and we can handle that disposal day in and day out but those super fund sites are really remanence of the past that i think are finally going to start getting cleaned up. >> boy, i sure hope so because i know that when you are called in, it happens quickly when it government is called in, it does seem to drag allen, we'll miss you. the founder and out going chairman and ceo of clean harbors with a very good book about leadership and also, i would say how to take on the toughest situations our country has faced. "mad money" is back after the

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we need to talk about ulta beauty, the largest retailer in america that reported what i thought was an excellent, excellent quarter. the stock had a bizarre reaction spiking in after hours trading before plunging down below 500 and then recovering back to 510 where it went out after hours trading closed at 8:00 p.m. last night. today, though, it rebounded from those levels opening up slightly bouncing around like crazy and finishing the day at 521 up slightly from yesterday's close. i mean, this is just some sort of roller coaster yo yo. i don't know what to say

i'll ask what happened how does a great company report a strong quarter to see the stock go up and down and up and down then only go nowhere? what's going on? first, make no mistake the results were terrific. there is a reason ulta beauty is a long-time cramer favor making $6.68 per share and wall street was looking for $5.70 up 18% year over year same store sales with a key met trick up 15.6, the street was looking for 8.7. that's almost double and that number is all the more impressive when you consider that ulta was up against insanely tough comparisons last year last year they had 21.4% same store sales growth so that's extraordinary stock. absolutely nothing wrong with the headline numbers at all. what about the guidance? again, all pretty good ulta's sales came in comfortable

ahead and margin guidance unloading. they're only talking about opening 25 to 30 new stores, okay, that was a little light and analysts expect 49 new stores the company plans to remodel or relocate more stores they moved some of the new store budget to the remodelling budget, not much to quibble with so why did the stock get clobbered in the after hours tr trading? great expectations problem i often talk about going into last night's close, ulta up 11% year to date the market got bad and nearly 40% over the last 12 months. in other words, the stock came in sizzling. it was also selling at 21.5 times this year ea's earnings estimates. when expectations are high, the market is unforgiving. while ulta's guidance was

considered disappointing versus what is known as the whisperer, the numbers that the bulls were really hoping for. last year, the company had 15% same store sales growth and in year calling for 4 to 5% same store sales growth major deceleration and didn't come as a surprise to the analyst. i was disappointed myself. the company is great on "squawk on the street" i thought they were being conservative. third, ulta reported at a bad moment for the market. we spend all day worrying about bank runs, of course people get more cautious with ulta caused by inflation and given it's more expensive in the average stock that's what happens. beyond that, though, there were other areas you could nitpick but the worst aspect of the call, you got to learn this. i got to teach you when management used the term investors didn't want to hear.

that term was de, d-e leverage, one word deleverage we're not talking about debt here we're talking about operating leverage each additional dollar of sales has higher margins than the last deleverage is the exact opposite and that's what all t ulta toldo expect it will deleverage modestly as the company analyzes benefits from price changes and heads into a more promotional environment this year and projected to take a real hit too and that i didn't like thanks to higher sales, general administrative expenses, on going wage pressures, supply chain constraints, not great that's the bad news. ultimately, though, once we listen to the entire conference call, the positives i thought very much outweigh the negatives. remember, the actual quarterly results were indeed fantastic. i started this piece by telling you that ulta sold double digit same

store sales growth and coming from skin care and lucrative business, fragrance and both the makeup category actually accelerated from the previous quarter. ulta pointed out they're taking market share in the beauty business meaning they're prying away high-end business for big department stores, fancy cosmetic chains. i also thought management told us a great story about the strategic priorities they talked about broadening the product 25,000 products currently available. more on the way. they talk about expanding on the channel online puickup and stor and says 331% was fulfilled by the store up from 2021 works for walmart and them the reward program has a staggering 42.million members. 40.2 wow. plus management had a pretty darn bullish 2023. ceo dave kimble said he's quote optimistic about the company's opportunities to expand market

leadership and drive profitable growth, end quote. he made it clear that the beauty category remains incredibly durable when you think about what happened with silicon valley, well, i like this. quote consumer engagement with beauty is stronger than ever and more connected with wellness these factors give us confidence that the growth of the u.s. beauty category will remain healthy but moderate to the higher end of the category's historical annual growth rate end quote. pretty good. not perfect. on top of that, i think we'll talk margin erosion this year might have overshadowed more positive long-term commentary from the cfo scott who said -- he gave an encouraging forecast for next year. what do we do with this one? it shouldn't be that hard. with e need to understand before the quarter, the stock had become a real battle ground on wall street. for months it had been hit with a series of downgrades. >> sell, sell, sell. >> price target cuts. >> sell, sell, sell. >> gold man came out with a

piece in december taking it from buy to neutral arguing it's les likely to see market share growth and tough comparisons we'll talk about by the way, in early january, wells fargo took ultra from an equal weight to under weight, meaning an out right seller. they noted that there is no really any great catalyst up ahead and they also said that that would be a pretty negative setup for the first quarter. of course, even if some analysts went negative, there is plenty of bulls on this one and that's what makes it a battle ground. my view, this is a well run company and a group of 40 million people to beat i'm not ready to give up on this because i believe in the concept and believe in management, which is terrific. that said if the stock sells off along with the rest of the market in the knear future, i love that. i two you would buy it. ulta ist

has not pulled back enough it got pulverized because expectations were very high but in the end the market revisited this one today and came to the right conclusion, which is how the stock ultimately ended up slightly higher despite a hideous take, what an affirmation i'm right, this one is terrific. i hope to get another bite of the apple because i think ultra is a great one barry in north carolina, barry. >> caller: how are you doing >> real good. >> caller: do you think it's going to put the big bills in the bag or sink? >> barry, i think block is terrific they don't have nearly as much risk as a lot of banks they are the young person's bank, but it is an expensive stock and we don't need to do anything, anything in that finance state -- well, if you join the club you'll see there is only two banks of financials i want to own right now. the only two i feel confident about other than jp morgan, dave in illinois, dave?

>> caller: dr. cramer, my man, central american deep sea fishing friend, how are you? >> i'm a big tuna eater, dave. good to hear ya. >> caller: me, too jim, analysts and morgan stanley recently maintained they're overweight and outperformed ratings on the $48 billion sports carman fracturer. last month, ferrara reported record quarterly results and strong demand going forward. not cheap at 40 times forward earnings but practically recession proof, i'd say even lamb borghini leases could appreciate is this stock investable or am i just waiting >> no, dave, this is very investable yes, indeed, lisa my wife loved driving lamborghini, the highest of the high lvmh, ferrara, they

are still winning. ulta got pull ver pull very risd when you see a stock up on a day like today that's one you want to own much more "mad money" ahead including my exclusive with reality income, letter o could they live up to the title? i'm getting more from the ceo and we haven't seen the effects of the fed's tightening. the collapse of silicon valley bank, what should the fed do next i'll give you my take and i hope jay powell is listening. all your calls in tonight's edition of the lightning round edition of the lightning round so stay with cramer. real zero energy is coming... and yes, that means cutting carbon emissions... but it also means cutting costs. because now clean energy is more affordable energy.

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what do we do with the best run commercial real estate companies? take reality income, yeah, letter o, owns more than 12,200 commercial properties. you know i've been a big fan because of the generous dividend policy really, it calls itself the monthly dividend company because they give you a payout every month and they've raised that payout 119 times since coming public 29 years ago. these levels works out to 5% yield. seems like a lot safer than the other 5% yields i see. i love that dividend we theedneed to be careful becae office real else state appears to be falling apart in some areas so we need to make sure we know what these guys own that's why earlier today, when we spoke to sumit roy, the president and ceo of reality income to find out he gave us the skinny take a look. mr. roy, welcome back to "mad

money." >> thank you, jim. thanks for having me back. >> all right so we've got this big craziness going on today with the silicon valley bank. we've got people worried about what the fed is going to do and worried about tech i want to know whether if i own reality income, will i still get my nice monthly dividend check >> you bet that's what we are doing this company is built on sustaining volatile times so yes, the monthly dividend check will continue to come. >> okay. so and that's because you have 99% occupancy or because you're very careful to not rely on one particular area. why are you not so confident based on so much worry in the stock market >> a combination of all things if you look at the portfolio and diversification, we're geographically diversified and present here in the u.s., spain and italy.

we're across retail and industrial and exposed to 84 different industrindustries we have 1,250 different clients. certainly that div diversificatn and access to capital are continued on a relative basis cost of capital to allow us to execute our business model, 99% occupancy as you said, jim, all of those go towards pointing to a very resilient business model. >> there are a lot of people would say wait a second, i don't want to be in a reality income during a period where short term yields are rising. >> that is a concern that most businesses are facing today. thankfully, you know, our leases tend to be 10, 15, 20 years in length if you look at the recently announced transactions there is

a predictability and the overal operating business to come back and the earnings guidance. >> you have interesting companies. there is something you did i think is fantastic, which is you did a deal with wynn describe it to people. i didn't think you could do it and it's a big winner. >> yeah, you know, a lot of people were surprised like yourself, jim. that was our first transaction that we did in the gaming industry it's an industry that we've been following closely and just like we've done in other areas of our business, you want to partner with the best in kind operators and wynn is certainly that in the gaming side and when we started conversations with them

about possibilly creating a relationship, we closed on the boston harbor asset $1.7 billio transaction, 30-year lease and one of the best operators in the space so we know that there are incumbents in the space, very good incumbents in the space very focused on this vertical but then, you know, being a $61 billion company, we believe we can play any area that we feel like produces the right risk and adjustment returns for us. >> sumit, you're the big guy you set a lot of tones you've been raising your distribution every three months. i need to know what your view is about an area that you don't do. commercial real estate commercial office real estate everyone is terrorized by and works from him and do yo is som

that operators you know for a long time will figure out what to do? >> yeah, it's -- look, we did have exposure to single tenant office and we had made a strategic decision to get out of that business a few years ago. we spun that business out and, you know, it is a business that is going through a hard time but there are very smart people who are looking at that particular sector we have some in the read space that are focused on office and there are alternatives being explored conversion to life sciences is one that comes to mind and where it makes sense, conversion to multi family not always will it lend itself to that but, you know, i don't know if the story on how people are going to work in the future has been fully played out yet so i think it's too early to stay it's the demise of central business district office

buildings a place in the future for that particular asset type and smart people are working on it. >> all right one last question that's really important to me. you deal with a lot of retailers including the big drugstore chains is there any end to the stealing that is happening in these companies? >> no, look, i think they're on to something if you look what cvs and walgreens has done recently, cva announced the oak street health deal this is a focus of ours, as well we've been following them. they've been following it. this whole concept of consumer medical is one that fascinates me it is trying to answer a question that we're all struggling with. how is it possible that the per capita cost of health care is one of the highest in the countries, yet, the quality of service that we provide is, you know, below average? so i do think that this advent

towards delivering health care which is what cvs and walgreens will explore will be part of distribution of reducing costs and we on the real estate side would like to participate in that. >> yeah, i think it will make the companies upon a consumer, buying or selling a razor blade. that's what is needed. sumit roy with a monthly dividend income, high favorite bec -- my favorite because of that. thank you for coming on the show. "mad money" is back noins no. >> announcer: coming up, cramer takes you calls and the sky is the limit. it's a fast fire lightning round, next.

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>> announcer: lightening round is sponsored by t.d. americtrad. it is time, it is time for the lightening round, buy, buy, buy, play this sound and then the lightning round is over, are you ready, ski daddy time for the lightening round? let's start with stackwell in washington. >> caller: boo, boo, boo-yah jim. >> i like that. >> caller: first time long time, man. thank you, jim. >> long time. >> caller: you take a lot of cash from the block market to the stock market because of you i'm becoming an investment advisor at a local firm and one of my first checks since becoming an investment club member so i'm letting you know that now the next couple

weeks, you got my word on that. >> i want more in. give me more give me the stock. >> caller: so let's get to the ticker sill bomb, man you. shoutout to my guys. like i said, you got to make stuff and do things. they have been having a little tech trouble, so i'm wondering if you'll sugar rush for making a good earnings or pulling back and time to get in with ticker symbol a.i. >> that's sugar rush, my friend. it's really -- it's like cotton condid candy let's go trade and true. you know the club. pick some of my stocks let's go to nick in new york, nick >> caller: boo-yah, jim. >> boo-yah back. >> caller: long-time listener, first time caller. >> salantis and would love to hear your thoughts. >> i like that stock has good yield and makes good money. it jeep chrysler i think my executive producer

has a jeep for heavheaven's sak- did. wrangler steve in pennsylvania, steve steve? steve? yeah, steve? >> caller: steve from pennsylvania. >> excellent >> caller: i have a company i'd like your opinion looks like a nation scenture and i think it's growing. what do you think? >> caller: symbol i.t. >> gartner we have to see how everything shakes out they don't have exposure but involved in that area. i think people can bring the stock down because of that let's go to john in rhode island, john >> caller: boo-yah, jim. i got a question about streaming services and we're a television manufacturer like vzio. >> i don't like tv manufacturers, take a big pass

if you want to buy a tv, go buy a tv and that, ladies and gentlemen, is the conclusion of the lightening round. >> announcer: the lightening round is sponsored by t.d. ameritrade coming up, the collapse of silicon valley bank signals the need for change in fed behavior. how should jay powell pivot? find out, next

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for months fed chief jay powell kept telling us he needed to be circumspect about hitting the brakes and wouldn't take willy-nilly forever because you don't know who will get hurt when you tighten too aggressively silicon valley bank collapse practically out of nowhere detachable victim of the fed's repeated rate hikes. the bank was sitting on billions of dollars of losses, if you hold those to maturity, you do get your money back so i could argue there was no way of knowing that this bank was going to fail let alone the consequences of that failure of course, you might have been able to predict the outcome here if svb financials executives had

been a little more forthright about the damage to the fed's tightening doing to both sides of the portfolio but they weren't. for 40 years, svb specialized in being the bank to venture capitalists, founders, the heart of the teblg ch world they were great at it. if you had a stock in a startup before it became public, svb was very student about valuing the stock and would often lend money against it even though it was not public and confident you'd be able to pay them back after the ipo. it was a fabulous one. it was inevitable, wasn't it we didn't know, though, they were a little too aggressive given the ipo window has been closed shut for over a year with no signs of reopening and a little aggressive what it did with investors deposits buying a lot of trels asuries and governt

mortgages when they raise rates aggressively i can say -- i could have said reckless i'm not going to their model had worked for decades through thick and thin this time happens to be different. the fed is trying to stop inflation and right now the worst inflation in silicon valley we have tech with inflated valuations because the stock market was too hot blowing up money and a lot of it was in tech jay powell had to find a way to choke off the supply and did it by raising interest rates. if the fed went more slowly, i have no doubt this bank failure could have been avoided but given this, going slowly would be hard to justify the speed of the rate hikes took everybody by surprise including the bank expanding like crazy. it really is svbs fault, what the heck were they doing buying longer term debt when the fed kept saying over and over again it would be tighter, longer,

let's just say much higher than where though bought the bonds. management must have figured they didn't have to worry. they could wait it out they couldn't afford to wait things out because it became hopelessly out of water when the government paper lost a huge amount of value because of the tig tig tight tightenings. that's what happens when you buy notes thinking the fed is done raising rates and they are not done they probably thought ipos would come back too. mistake of judgment. because of the rate hikes, there was much less interest in ipos so we got deal flow and commercial banking customers were burning through cash with no ability to raise more and that cash they were burning through used to be svb deposits. so it became a slow motion bank run until this week when it became visible and then became an out right run that couldn't be stopped in time to many customers needing money because the companies might not make it and too few assets to

draw from because there was a portfolio under water if it wouldn't have been except the ultimate measure came too early for the bonds to mature. i don't know if other banks had the same, probably some do but as i said at the top of the show, the fed would have to be nuts to maintain the aggressive course because not creating problems by going too fast until today the fed's rate hikes didn't seem to be hurting anybody. at least not too badly today we found out they might be hurting everything and another 50 basis points could crush a whole host of banks whose stocks were down badly today. the circumstances have changed and mr. poul i'm behiready to s down you were losing inflation until today and with a surprisingly big bank failure you're winning take a bow and wait before

hitting the brakes more silicon valley banks right under your noses we would have known. we just didn't know. we sure know now i like to say there is always a bull market somewhere and i promise to find it here for you on "mad money. i'm jim welcome everybody to last call. a different open tonight. tonight, the biggest banks collapse since the financial crisis. why it may matter to you and your money. we have got a full team coverage on this rapid implosion throughout the show. we will get to them in a moment. here is what we know at this hour. silicon valley bank is basically gone seized by regulators after making explicitly bad bets on mortgages