First, even after this twoday, markets not down much at all. The s p 500s only off about 4 , dows off 5. 7 , nasdaq which totally red hot going into this week is down 3. T2 . Barely down at all especially when you consider this high index is up 22 for the year. That perspective matters. Today the high fliers in the nasdaq, the linkedin, teslas finally cracked, my favors celgene, regeneron and gilead. But very few can hold up even if they dont have that economic sensitivity. These highfly selloffs dont end in a day or two. They tend to last three four days before they start bouncing back and usually bounce back with a vengeance. Accept theyve been big winners and big winners do sell off and then your call not mine whether you can handle the disturbance, or if you want to ring the register, i suspect theyll go back when the deal is done. Again, perspective on things. As i like to do every time i get discouraged like today, i take a look at the wall street journal from october 4th of 2011. Thats when the s p 500 index fallen 19. 4 from its high after the onetwo punch of our first debt wrangling and the beginning of the session in europe. That was a huge selloff and traced to many of our similar political issues now, but as well as the lunacy on part of the European Central bank which bumped Interest Rates twice in the face that turned out to be a gigantic slowdown if not a Great Recession worse than ours. That made a lot of sense given the economies around the world were fragile. We were coming back in tepid fashion. Europe was sinking fast so was china. Perspective. Now we took a 7 hit to the s p 500 of a fiscal cliff issue last year before that was resolved, many stocks fell more than that. Thats appreciatively worse than what weve got right now. The economy is stronger here now than it was then and europe and china are in much better shape. Lets not lose sight of the fact we arent falling apart economically versus those down 19 and 7 declines when things were much more fragile. Okay. Thats the good news. And that news is very important. We do have a stronger economy now than during both of those crises, thats the point im making here. Europe and china have improved since then. Heres the bad news, same as the good news, the markets not falling part enough to get peoples attentions. No the on main street, not on wall street, something, of course, the speaker of the house tried to do too after the close. Neither the bond nor stock market is getting scaring people. Is that a highquality problem . I dont know. Up to you. Why is it, though, why hasnt it fallen more . Well, first the president has often said things are going to fall apart in this country without a deal. Said it in the debt ceiling in 2011, fiscal cliff 2012. We didnt fall apart because we got a deal. The speech today was on the one hand devastating of pretending whats going to happen. Theres no business person out here who thinks this wouldnt be a big deal. Not one. You go to anywhere from wall street to main street and you ask a ceo of a company or ask a Small Business person whether itd be a big deal if the United States government isnt paying its bills on time. Theyll tell you its a big deal. It would hurt. Yeah. Its kind of a total launch of Nuclear Weapons speech, the big deal theme. But on the other hand, weve heard variations of it before and never actually went nuclear. You know, i mean judging by the last two crisis, it was a mistake to sell into those very kind of speeches we heard today. People sold on the nuclear wrangling on 2011, 2012, couldnt get back in fast enough to profit from the bounceback. Second, i think that until this weekend, we didnt know how intransigent both sides were. Two things changed for certain this sunday. First, we got an article, a good article in the New York Times outlining how well financed the republicans who dont want to deal are. We learned many of these people want to starve the beast and would be perfectly willing to unseat the speaker of the house that tried to deal with the president. I dont think john boehner has the votes to stay speaker if he gives into president obama because of these opponents. They made it a circuit, made it very clear theres nothing to negotiate because the debt ceiling is tnot lifted. The president seems unwilling to call this a constitutional crisis and therefore invoke the 14th amendment to force the government to pay its bills even though they may turn out to be the only constitutional way out of this jam. Therefore, yesterday was the first day we realized there was no way out if everyone sticks to his guns. Thats something that seemed to elude people until friday afternoon when many investors thought there would be a deal to open the government and raise the debt ceiling for the moment or at least for the time that takes the nukes off the table. In the last 48 hours, the conversation has changed and it has changed dramatically. Weve gone to think the default was impossible. You heard that, 1 in 10 million shot, we should play those tapes again, right . To thinking its something not only on the table but it will be dealt with if and when it occurs. Thats right. We started talking about if and when it occurs today. It can occur. The president made it seem pretty clear that unless he gets his way without any negotiation, the bills wont be paid. How many times did he say today he wasnt budging. How did people say that was a forgiving speech . How many times did he say he was not willing to negotiate with a gun to his head . How many times did he say this time is different . Until the speech of the press conference, wed been tracing out a scenario where the deadline was considered fungible. Theres enough money in the till. Same with a lot of the other government bills. In fact, until the president spoke today, we felt there was a plan. A plan to avoid default no matter what. I thought there might be a plan there, like some secret plan. I thought the president was hard to follow on this issue in his press conference. Everyone acts like they could follow him perfectly, i couldnt. I live and breathe the stuff. I think he said there are things that can be done to mitigate these issues but theyre all bad. The least bad of all bad options kind of like argo. He also said theres nothing to be done in terms of prioritizing the debt that is satisfying to him. The uz that mean he wont authorize anything to be paid . Unclear. Now, were in new mode after today. Now were in a mode where the stock market or bond market has to experience real pain much more than we saw so far so negotiations can start in earnest. It seems well have to experience job offers. We dont have federal data because of the lame brain shutdown before anything can be done. Yesterday we got worried there was no deal over the weekend, today we got scared we were going to have no deal to pay the debt and no way to get out of the box. What is to happen . Im going to be clear again. I do not think therell be a default. That would be catastrophic because the world runs off our treasuries. By the way, this is not a 1 trillion problem. This is tens of trillions of dollars at risk of being thrown off kilter, which is why i dont think itll happen, its too big, its too big to think it can happen. Its much bigger than lehman. I dont know, people say its ten times bigger than lehman. Give me a break, its hundred times bigger. Ive been adamant a long time saying we will come down a lot more going into october 17th, they were supposed to run out of money and unique cash on hand for your stock portfolio as we have in my charitable trust. We did not put any money to work here. Ive been saying once we got past halloween, were in stress mode where real businesses get hurt. Today we heard the president say that we could have a very deep recession. His quote, if we dont get a deal and the deal has to be done by october 17th. He moved up the goal post back to where it was and made it clear that business could be crushed by a default if we go back over those goal posts. Heres my bottom line. President created some urgency today. Without the market coming down much more from where it is, that urgency doesnt yet have the gravitas needed to get something done. To me, that means more pain ahead. Fortunately, the economys stronger than the last political crises and the one before that. Still, expect more declines and more trouble before we get a deal that satisfies no one but does put the nukes gloriously back in the silos where they belong. Hey, why dont we speak to igor in new york, hey. Caller hey, this is igor from Staten Island, new york. Booyah for you. Thats a good one. Caller im calling about angi. Last week, they reported they cut their fees from 40 to 10. Since then, the stock is up over 35 . Is this stock oversold here . Or is the Business Model simply now viable . I have to tell you, i read the stories and felt awful about the stock. I said to myself, we have to avoid this one. Really the Business Model in correction is the correct call. And everyone on Staten Island should stay away from angies as well as everybody else. John in california, please, john . Caller jim, thank you so much for your show. Ive been to the red top, its darn good ice cream. Am i right . Is that good soft serve or what . Caller youve been there. You bet. Caller i want to ask you about qualcomm. Had it for a while. A while back i saw on your show you liked Texas Instruments better. But i noticed they had a pullback or a downgrade. Something to worry about . I didnt know i know they said business is going to go downhill two years from now. If its the kind of note that makes me say, you know what, i dont need that kind of risk. I would stay away from qualcomm. Its no angies list, its a good company with a lot of money, but that note was very disconcerting. Okay. Brace yourselves, more pain on the way but take comfort in the fact things were better than they were in the last two crises because the economy was better. The economy was real bad in this one. Mad money will be right back. Coming up supersize shale . Everythings bigger in texas including what could be the second largest Oil Discovery in the world. Tonight, cramers got an exclusive with the company at the center of this new source of american energy. The ceo of Pioneer Natural Resources is next. And later, diving into default . This is the credit worthiness of the United States were talking about. While d. C. Battles it out and puts the entire Global Economy at risk, cramers flipping the script. Dont miss his list of companies that could capitalize on the chaos in the capital. Plus, heart of glass . Looking for a way to play whats next in tech . Cramers got his eyes locked on the Company Powering google glass. Its already displayed a stunning performance, quadrupling this year alone. But could technical signals point to more . Find out on off the charts all coming up on mad money. Dont 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 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. Evto earn degrees in mathan stand science. Ut but more than half leave their programs. 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At Kaiser Permanente weve reduced serious heart attacks by 62 , which makes days with grandpa jack 100 more possible. Join us at kp. Org and thrive. While washington seems dead set on turning the United States into a mickey mouse country, theres still plenty of areas where we are nurl one and lets not forget it. Theres one particular area where were becoming number one. About to pass russia in the Worlds Largest producer of oil and gas. Rip your hearts out, saudi arabia. Weve been highlighting all of americas sexiest shale plays. And whats now looking like maybe the biggest of all, the Permian Basin down in texas and new mexico. You must talk about Pioneer Natural Resources. Pxd. Theyre the largest producer in the state of texas. But ive got to tell you, maybe the new major in this country. Eagle ford shale, barnette shale as well as the basin across texas, oklahoma and kansas. And the gas fields in the rockies. Company is sitting on vast quantities of oil, particularly in the oil field area of the permean, entering 225,000 barrels of oil a day. It was considered the largest uneconomic oil play on earth. But since then, new drilling techniques based on hydraulic fracturing. Up 80 since the year began, 15. 6 growth rate. I think its worth buying on any pullback because the companys growing production like crazy up 17 in the most recent quarter. Lets check in with Scott Chatfield chairman and ceo, maybe the greatest oil man in this country right now. Find out more about how his companys headed. Welcome to mad money. Thank you. Now, the reason i say this, theres two charts i wanted to show people because they blew me away. The first is, youve got largest u. S. Oil fields. And in it, youve got sprayberry. This looks much bigger. And the second, for a little perspective, a saudi arabia field and then ours . Yes. How can this be . Its all about a change in technology. Weve taken a field, weve been drilling vertical wells for the last 30 years, 40 years. And now were finding out theres about eight key zones. Its like having eight eagle ford or eight bakkens, theres 3,500 feet of shale. Were going into those zones, making wells that make about 3,500 barrels a day where they used to make 100 a day. Theres like eight eagle fords on top of each other or eight bakkens on top of each other. Thats what got everybody excited. All right, scott. No ones talking about this other than you guys. Hows that possible . I mean when it was discovered, everyone knew about it. When the bakkens got going, no one believed the bakken could be as big, and then we were told about the eagle ford being big. How can it be dwarfed by this field no ones talking about . Were talking about it. Well, other than you. People like concho are talking about it. Theres a lot of apache is starting to talk about it. Focusing their attention to it. But weve been the most dominant player in the midland basin and this spraberry wolf camp for years. Back in the 80s and 90s, most of of the 900,000 acres is held by production. And so were the ones that have been doing most of the drilling. Well be doing most of the drilling. Were ramping up to about 50 horizontal rigs over the next five years. We have the largest data base in the midland basin. Over 70,000 well logs, over 12,000 feet of core. So thats why we have the data base so we sort of have controlled whats been discussed about this field for the last 30 years. Okay. Now, when i listen to simmerx last night, are you a Refining Company or an oil company . Were an oil company, but we have some of the best geoscientists and engineers you can ever find. Our company moved to dallas back in 19 the 1997, we merged with mesa and got some of the top geoscientists in the industry to go to work for us. Theyre doing the work. All right. Now, there are other companies trying to get in. The chinese are trying to get in. You sold just a sliver of your business to china for a huge amount of money, right . Yes, we sold roughly 40 position in 200,000 acres, so 80,000 acres, so probably a little bit less than 10 for about 21,000 per acre. Its a great partnership. Were in the process, up to seven rigs, well be ramping up to 10, 11 rigs next year, horizonta horizontals, over 10,000 barrels a day. Were ramping up to 350,000 barrels a day over the next 20 years. Now, the curve here shows that youre not even where a lot of times we see them go down quickly. Yours is going like this. You think 2013s going to being a big year. Yeah, we expect to grow per share 15 to 20 over the next several years. When you stop modelling these type curves, payouts less than a year, theres 17,000 barrels a day. Theyre when you start focusing your attention on the best wells, we should grow at that rate. Should you sell the properties and fund a gigantic amount of drilling right now in in spraberry . In fact, we sort of did that. In 2006, we made a strategic decision. We got out of all international assets. Right. Out of the gulf of mexico assets, refocused all the attention, the engineers and the geologists on primarily the eagle ford and primarily west texas in the midland basin. And you have enough money to develop spraberry . Yes, we do. As long as crude prices stay relatively in the 90 range, we have plenty of cash flow over the next several years. What a story. I mean, i think its good to have a good story on a couple bad days. Yours is youre the next big major. I cant believe it. Youre the next big major. Thanks, jim. Okay. Absolutely. Scott sheffield, chairman and ceo of Pioneer Natural Resources. Go through his presentation, largest u. S. Oil fields and youll feel like i am. You will be blown away. Stay with cramer. Coming up diving into default . This is the credit worthiness of the United States were talking about. While d. C. Battles it out and puts the entire Global Economy at risk, cramers flipping the script. Dont miss his list of companies that could capitalize on the chaos in the capital. And later looking for a way to play whats next in tech . Cramers got his eyes locked on the Company Powering google glass. Its already displayed a stunning performance quadrupling this ye