1. 02 and the nasdaq plunged 1. 14 , i think being old is a very good thing. Whats so great about being old . Simple, i remember things. Things that can be valuable to all of you, because ive lived and traded through them. Right now, of course, were in the midst of earnings season. The news is coming fast and furious. Boeing missed the forecast, is the honeymoon at yahoo finished in the wake of the not so hot quarter and the slowdown . In a normal day, we pick them apart, questioning whether facebooks quarter was as good as it looks. I think it is. These are not normal times. Other forces are at work. Forces that are not necessarily bigger than individual companies that make up our stock market can still trump them shortterm. Lets set the tableau you and me. Nothing to do with the Earnings Report, which like every other day have been good with only a few real stinkers. Typically on the guidance, too, not the quarters themselves. The weakness is from emerging markets and their likely impact on our own stock market. This spillover effect, this waterfall, is something im uniquely qualified to riff on because im old enough to remember investing through several other emerging market panics, just like were having right now. And i want to give you that Historical Perspective so you can make up your own minds about whether to cut your losses, start buying some highquality stocks, one or the other. I know this stuff can drive you to drink, or as Joseph Conrad wrote in one of my favorite stories, fittingly youth pass the bottle. My first tussle with emerging markets was turkey itself. Betting that people would stop pulling money out of this country as it needs socalled foreign hot money to pay for its debts. 22 years ago, i was real hot on turkey. The economy had taken off, the secular government seemed to be turning the country into an eastern powerhouse and there were talks, tons of talk about how it was going to be the next germany. I couldnt resist, i had to have some. And after examining the best prospects, i bought a ton of the bank of america of turkey and the turkish whirlpool. There were two thoughts behind those purchases. One, the emerging middle class in the region was beginning to buy homes to start businesses so the banks would have to boom and it was going to be the lowcost supplier of the emerging middle class of central and Eastern Europe for washing machines. Believe me, the hook is always the emerging middle class. So irresistible. Give me some rakia, the National Liquor of turkey then like now, though, turkey had far more political risks than i realized. It needed capital for its growth and that meant higher interest rates. Sure enough, the country started faltering and printing money. First the stocks didnt seem to be going down, but thats only because they were priced in turkish lira and didnt reflect the decline in the currency. When i started translating the currencies, in just a month my investments were cut in half. Next thing i know, i got about a quarter of my money back. It was a total disaster, people. Emerging markets, so great. However, if i kept my cash close to home, i would have made a fortune. Turkey had no impact on our markets. In part because we werent nearly as linked as we are today and the media didnt cover the place back then. These days, we have lots of cash thats interconnected, flying all over the place, borrowing money to pay turkey, many others worried about contagion to other countries. Some stress here, argentina, south africa, indonesia. Some are even blaming the fed for causing the spiral, but thats because theyre fed centric and would blame the fed if the favored broncos lose in the super bowl on sunday. My next big emerging crisis, well, how about mexico . In 1994, the emerging market of mexico was all the rage. I remember Morgan Stanley trying to talk me into buying mexican stocks, but i learned to stick to my knitting after turkey. Others didnt, and we had the peso crisis also known as the tequila crisis. Im not kidding. And by the way, thats not the same as when we ran out of highquality tequila. That wont happen again. Pass the bottle. You should have seen the panic during the tequila crisis, you would thought every speculator had swallowed the worm that they put at the bottom of the bottle and real bad mezcal. Before that happened, our stock market got pounded, 470 down to 445. A year later, s p trading at 627, hmm, scaredy cats freaked out. Those with patience and fortitude caught a 40 gain over the next year. Fast forward to 1997, the emerging market pied pipers, hong kong, singapore, south korea, taiwan, hey, the four tigers of east asia. Thailand, a tiger cub was trying to get in on the action, but it got too overheated. And its currency, the thai bhat got clobbered. The contagion quickly spread to four tigers which were reduced to a bunch of tabbies. Guess what, you cant see the decline. Going into the Asian Financial crisis, the s p 500 stood at 865, a year later emerged at 1,098, 27 gain. Ill take that any day of the week. But a lot of people didnt take it because they panicked about a currency that theyd never heard of. And now, when you see this, its pretty darn funny, isnt it . Final tribute to emerging market lunacy, the russian ruble collapse of 1998 where the stocks and bonds of that newly capitalist nation had way too much vodka to drink and the rotgut annihilated their markets. Once again, id been urged to get involved shortly before it went bust. Others who hadnt lived through my turkey experience followed that advice and their panic brought the s p down from 1,174 to 1,096, a 6. 6 decline. But a year later the s p stood at 1,348, 20 gain for those who didnt vomit up their stocks after a stoli bender. Pass the bottle. Which brings me to the point of these old war stories. Here we are again gripped by one of these panics. Many seem to believe this has to be europe all over again where we took a serious shellacking. One that was deeply and inextricably linked to many of our countries. Whats happening now is nothing like that. Others are thinking what happens if china crashes is into a retaining wall. That could bruise us badly. Im urging patience here in what could be a 5 , 6 decline a la what we talked about last night on or off the charts. If you only think 365 minutes out, maybe you want to dump some bad stocks. If youre thinking 365 hours out, you might want to trim some good ones. But those who think 365 days out, get your Shopping List ready. In a few days, you might need it. Mike in california, please, mike . Caller jim, booyah, this is medical mike from california, and i was wondering about lexmarx. I bought it a couple days ago on a dip. Im wondering if you think i should take some profits or if itll keep going up. Im not a fan of lexmark. Its a commodity company. I do like hewlettpackard more. Vinnie in texas, vinnie . Caller booyah, jim. My question is on home depot. I understood that home depot acquired blind. Com, the stock has been going down for the past month. Shortterms and longterms of home depot . People are concerned about home depot because theyre concerned about retail. Theyre concerned about retail because they think the consumers pinched. Im not as nervous about retail when it comes to home depot because its an excellent operator, particularly with all of these storms around the country. I believe in frank blake, does that mean home depot can go to 73 . Oh, sure, does it mean id buy it at 73 . You bet. Today might have you reaching for a cold one, but please, patience. Nurse those drinks, pass the bottle. Mad money will be right back. Coming up sweet spot . Whether its the ground floor, the freeway or 30,000 feet in the sky, honeywell has the technology that powers it all. The company just delivered a solid quarter, but can the stock stay sweet amid a potentially sour Global Economy . Cramer talks with the ceo. And later, cleared for takeoff . American airlines emerged from bankruptcy to become the Worlds Largest air carrier, and in todays turbulent market, strong earnings kept the stock above the clouds. Can it give you a smooth ride . Or will it need to refuel after its 30 rise . Dont miss cramers exclusive with the ceo. Plus, executive order. The president talked up natural gas on last nights state of the union. Its the bridge fuel that can power our economy with less of the Carbon Pollution that causes climate change. But is it just hot air or is there a way to play it . 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. Even a difficult moment like this one where everyone seems terrified about the Global Economy, please, lets not get too despondent, because there are still highquality companies out there that are executing fabulously and the stocks of those companies are holding up better than the rest of the market, as they should. Consider cramer fave honeywell, makes everything from Aerospace Components to Energy SavingClimate Control systems, security equipment, turbo chargers that can dramatically increase your cars gas mileage. Last friday, reported the results were darn good. Ended up getting lost in the shuffle of the markets hideous selloff. Company delivered strong headline numbers, 2cent earnings beat with higher than expected revenues. But the really impressive number was honeywells organic revenue growth, up 5 , thats much higher than management anticipated. On top of that, the Transportation Business where they sell those turbochargers for cars and trucks was incredibly robust. Management said that china did extremely well during the quarter. These are both good news stories at a moment when people were worried about autos and terrified about china. Dave kote is one of my bankable 21, but look, its up less than a point since reported on friday. I think it deserves to go higher, especially with the analyst day coming up in march. Dont take it from me. Lets check in with honeywells chairman and ceo and hear what it means for his company and the Global Economy. Welcome back to mad money. Nice to see you again. Have a seat. Have a seat. Im going to get to the economy for a second, but boeing was down horribly today and it just seems like a weird juxtaposition. Aerospace was so strong for your company. I have to believe that to some degree whatever got into boeings stock today is not necessarily reflective of the longer term view that you have about the Aerospace Industry. Well, i would say, yeah, the Aerospace Industry is one that im very bullish on generally. As you know, ive tried to position ourselves within macro trends, stuff i look at and go, okay, over decades, this is likely to keep moving in this direction. And i just dont see a future where planes arent a bigger and bigger piece of the overall pie as the world becomes more wealthy, especially on gdp per capita, families become more dispersed, businesses more global, people are going to travel. And cars arent going to get you all those places. And you cover the panoply. Not everybodys doing well, but its a rising tide for everybody. Yeah. To me, a lot of times i feel youre concerned its tepid. I think that you reading through the lines you think its slightly better than its been. I would say you used the right words there. Slightly better. And as you know, ive been one of the guys who has been a little nervous, a little skittish about it for the last three years, and ive played it that way. And i can say even at our Senior Leadership meeting this year, which i did two weeks ago, my message was this is the fourth year where our theme is winning in a slowgrowth Global Economy. That parts still true. Right. However, i do feel like its slightly better than it was. I dont know that i buy into the 3 Growth Scenario for the u. S. , but i do believe it will be slightly better than we have been. Which is good, as long as its getting accelerating, thats where we want and you i know youre close enough to china to know a slight down tick could matter. Argentina, indonesia. Your world view fits that all in, right . I was always nervous about argentina. How could you not be . Turkey can be a little disturbing. I hope that they sort that out. But its not like it drives the world. Right. China is one to pay a lot of attention to because its got 1. 4 billion people, second biggest economy in the world. And interestingly for us became the second Biggest Country in the world for our sales last year. Wow. And i think thats an important dynamic and one of the reasons why i talk about why its so important to become the chinese competitor. Its going to be increasingly important. Right. I dont think we can always rely on the Economic Statistics that come out of china to quite the extent that people want to. If its really good, they say you cant believe that. If its really bad they go, oh, my god. Youre right. Its not like a labor report that comes out on the first friday. Yeah. Exactly. So weve been pretty bullish on it. Our sales were up double digit in china last year. Fantastic. One of the moments in the Conference Call that was you just saying telling it like it is. If you want to meet cafe standards, if you want to raise how much gasoline, you know, cut the use of gasoline. Yep. You need your product. Yes. You need turbo chargers. Why does no one else have it, and what does it really do . The significance of a turbo charger, think of it this way, you can have a v6 engine that performs like a v8 engine, but with about a quarter to a third less fuel usage. Dont you think most people say i dont believe that, its not possible . Well, weve been doing it now for 20 years. Actually, longer than that. This is a deal that was actually struck by one of our founder companies, garrett turbo chargers. Oh, sure. Working it was actually the garrett engine business, working with caterpillar. And the thought was, is there some way to adapt jet Engine Technology for use on an engine. At the time they were thinking to make it more powerful. You didnt need as much fuel, either. Its one of the reasons that we have an advantage in turbochargers that will last forever. If you look at a turbo, it really is just a small jet engine, material science, air flow handling, same for that as it is for a jet engine. Guess who the only turbo charger manufacturer is who has a jet engine business. Just you. We have a Technology Advantage that nobody else is going to match. And thats a technology that is just so easy to put into a car, because ive often said people want to save energy, but they dont want to do it if it means being warmer in the summer, colder in the winter, or a car that costs more and doesnt go as well as the last one. You need to always be thinking about how do you manage comfort with savings . How do you manage performance in a car with savings . And a turbo charger allows you to do that. Speaking about technology and cold weather climate, two thirds of it worse since 1977. Im thinking thermostat. I want to know whether you think given the technology of your thermostats whether you had a laugh, a chuckle when google bought nest, when it seems like your you can speak right to your Climate Control. My comment was at that multiple, they can have honeywell. Ill sell them the whole thing. They can have everything. They had to. I mean the people at apple were like, oh, holy cow, they could pay anything, and people love google. It was kind of like that, wasnt it . Yours do a lot of good stuff. I was incredulous. Even Something Like a wifi thermostat, weve had that for three years where you could do it on your smartphone. I love it. Ive got it like that. It works fine and weve got the voicecontrolled thermostat now, which is really pretty neat. And theres been significant patent violations, as you know, which were continuing to pursue. Right. Right. Like i said, my thought was, hey, you can have the whole thing. Exactly right. You paid that multiple. We dont even need to negotiate. You can have the whole thing. I like that. Theyve got the cash. Now, youve always been a big thinker, too, about the United States and about the government. It looks like when i look at some of the numbers that we are getting a little better on the deficit, a little bit of religion. Still some very big issues. Heartened, disheartened, where are you . Im kind of in the middle with it. All right. Because were semideclaring victory, because we only have about a 70 debt to gdp ratio, which, by the way, is the highest in the history of the country over 240 years, close. Other than world war ii. So as much as everybody complained about the Ronald Reagan debt and deficits, or complained about any one of the wars, this is the worst it has ever been. And while this decade will probably hover around there, it starts to climb up towards 90 in the second decade because we are not doing the stuff we should. And i try to put this into the context of how do we compete as a country on a global scale . The world has changed for us. Weve gone from 1 billion people participating in the Global Economy to 4 billion. Now you have china, india, russia, all of them. And you cant compete with a bad balance sheet. Right. You cant. And thats what we have. Thats the bottom line. Yeah. Thats what we have. All right. Dave, youve always been sober but i also like yours slightly better. Chairman and ceo of honeywell. You see why i think this stock is so terrific. Stay with cramer. Coming up, cloud nine . With more than 3,000 flights a day, chances are youve booked a ticket on American Airlines. But is the stock a better way to fly . Stay tuned. One more hideous day, what managed to buck the markets gravitational pull and rally quite nicely . How about the brand new American Airlines, aal, the uber cramer fave product of the merg