Things happening . And then i real off the positives even though the averages are spending most of the time in the red lately. Unlike today the dow dropped 100 points. S p declined 0. 63 . Nasdaq fell 0. 4 . Give it a try beginning with pet smart. Why on earth is someone paying 8. 3 billion to buy a pet store chain for 83 per share, the biggest leverage buyout of the year. 28 bucks above where the stock was seven months ago. Its not like its an amazing company. This chain is problematic. In nature frankly. It has been viewed as total amazon prey for several years as it missed quarter after quarter starting in 2012 and considered and also ran with slowing samestore sales, second rate omni channel falling by the wayside. It had been downgraded and downgraded and downgraded more. It became the butt of many jokes. Including that if amazon could ship pets, pet smart would have no more business. And in the meantime pet smart was starting to turn around but the brilliant web acquisition. An increased in spending on pets as the economy keeps improving learned that from having pet company after pet company on. Pet smart was on the move. Thats why bc partners willing to outbid to buy this thing. Plus, the deal saying petco another pet store chain that already went private might make a bid for the company. Is that supposed to happen . How about this . If things are so bad what the heck is river bed technology, a totally down and out networker, wow. The house of pain. Going private for 21 a share at 3. 6 billion with two different sophisticated buyers taking part. Be river bed. Holy cow. You got to go back to july of 2011 before you can find anything good about how this company was doing. Thats the last real upside surprise. The networking analytic space is so crowded, so competitive, but the buyers didnt seem to mind. What a stretch this one is. If things are so bad, why did barclays upgrade cirrus logic, the sound system for apple devices while j and p is pushing sky works, huge percentage of the share within the iphone. Why did gene munster from piper, key apple analyst, say theres basically an iphone shortage for the holidays because of demand. Three solid pieces about the Largest Company in the world. But were somehow supposed to ignore all that good news and take apple down because its part of the s p 500. And when the s p 500 goes down, when oil goes down, apple has to go down. Is that what should happen . Cirrus rallied 22 . Courtesy of more iphone orders. Sky works booked with iphone orders. Apple cant meet the demand. Of course the oil drillers are in trouble. What do we do with apple . Sell sell sell sell sell sell sell sell sell. The things are so bad out there why did restaurant chain bob evans farm soar this morning on the resignation of its ceo steve davis who many thought stood in the way of a breakup to split the company in a business like hillshire brand, the company that got the bid from tyson foods and a Restaurant Business on fire given how its locations dot interstates everywhere, not unlike cracker barrel. Forget that, forget that. Russia may not be able to pay its bills. Of course, we sell sell sell sell sell. Sell bob evans. Its directly linked to the ruble, isnt it . If things are bad why does honeywell, standing by their guidance forecast for more. I cant wait to take ceo david cote to task. I mean hasnt he been watching the tape about how his company is still on course for a big year . What a great opportunity this would have been to say the Global Growth picture is slip sliding away and he had to revise his view to the negative because i mean he must look at stocks. If things are so bad why is Klaus Kleinfeld the brilliant ceo of alcoa acquiring a German Company that makes titanium aircraft parts. A German Company. Europe is falling apart isnt it . Hes buying it even though the whole lightweighting concept means so much less in an environment where jet fuel is cheaper. Of course when i interviewed him he pointed out when oil goes down you get better growth in the Airlines Want to save as much money as possible anyway which is why theyll keep buying more planes more fuel efficient. If things are so bad what is j and p securities doing saying good things about twitter . The horrendously underperforming social media site. With challenged management. That show very little ability to monetize, more than 284 million monthly active users. Whats the point of slapping a 49 price target on 36 stock. Down more than 42 for the year. Let twitter get hammered for heaven sake. If things are so bad out there, why would oppenheimer tell us whole foods might have an upside surprise. Isnt this the same whole foods thats been in a desperate fight over market share for ages. Arent its costs sky rocketing because of natural and organic produce. Whats pfizer doing giving opco health 295 million up front royalty on its long acting Human Growth Hormone formulation . Is that just one of many reasons why the ceo keeps buying his own stock. If things are so bad why did Morgan Stanley go from hold to buy on oracle, the Gigantic Software company that reports on wednesday. Take a darn rain check and wait until after the quarter give them what we know about venezuela, nigeria, goodrich petroleum. If things are so bad out there, why would citigroup bump its target from marriott the worldwide operator, just declare victory and move on. Why tempt fate knowing some mid sized oil Company Might have to restructure its debt. Arent there black swans landing in marriott pools worldwide. Thats the truth. There actually is a there there so to speak, a real economy that could potentially be brought down by a contagion from the russian rubble. Im sure even after everything youve learned in the last two decades about contagion there are banks and knucklehead mutual funds with u. S. Ties that have exposure to the ruble because theyre idiots. Maybe they think it represents great value. Putin calls Angela Merkel tomorrow and says i have to rethink this ukraine thing, lets be buddies, its yours. A broader theme, if mineral prices are slumping and oil cascading as it did today and bond yields low theres a huge problem with global demand. I can only reiterate what Klaus Kleinfeld told me the chinese economy still remarkable, engine of growth and company doing well time to put more money to work building here and buying there. Heres the bottom line. Allow me to propose a crazy idea. Perhaps the answer is that things just arent so bad. But the machines say its bad. The ones that are linked from the oil futures to the s p. And the machines are never wrong, right . Never wrong until, of course, we come in one day and realize that oil is down a lot, the bankruptcies arent that devastating and other countries run out of money to produce oil as we continue to do so. Then maybe the machines will say, if things are so good, why are we selling . And at last the bottom will be put in. Mark in california, mark . Caller howdy jim, how about a proud to be an american Southern California booyah. Total sentiments except im jersey. Caller according to your opinion whats the skinny on alibaba . Well you know what, alibaba is a company that got too much hype going into singles day and that was the peak. I dont think that alibaba is expensive versus other internet plays, but remember, wes also are dealing now with the chinese slow down that people are worried about. Put it this way alibaba is resting. I dont think its doing worse. I think its resting. When a stock is resting, a lot of people get bored and other people they get scared. Lets go to jerry in michigan. Caller hi, jim. Booyah. Booyah jerry. Caller i have a question for you. Okay. Caller i first zoe tis at 36 and change and i just sold it today for 4 or 5 profit. I got a little squared because the market was shaking out. My question to you is, do you think that a pullback and if its does do you think its a good time to get dragged in . It was ups because people feel there could be a takeover or something at work with the bill ackman and his Pershing Square fund. He did saber rattle. I think he did the right thing. I think the stock is up on the spike and when stocks are up. Sell sell sell. Jim cramers get rich carefully, spike is a good reason to sell stock. You did the right thing. If things are so bad then why is there so much good . When the machines finally recognize the positives, then and only then will there be a bottom. Else were going to be driven by the linkage. Oil not done going down yet. Testing the metal of aluminum giant alcoa. Will a bet on aerospace take this company to new heights. I have the ceo. The biggest tax cut weve had in years but oils decline is rattle the wider market. Dont miss my take on when this insanity could stop. Could honeywell put sweet gains in your pocket . I will ask the ceo about the companys plans for the new year. Stick with cramer 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. We needed 30 new hires for our call center. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. I always said if you want to get a read on the Global Economy listen to alcoa, symbol aa, the company that gives you incredible insight into everything from aerospace to autos, trucks, commercial construction, packaging, even natural gas tur pine bins. For years alcoa has been transforming itself under Klaus Kleinfeld into an aluminum play and more of a diversified high value added aluminum products to the aerospace in auto industries. It announced the next step, the acquisition of the German Company that makes components. On squawk on the street i told you it was a big deal. Judging by the comments by honeywell and boeing, two other titans, well lets just say it maybe may be pressured. After an entire on squawk i had a chance to keep talking with klaus, alcoas bankable chairman and ceo to take a deeper look at the company. You take a look. Klaus, youve been really just a remarkable transformer of a very old american company. What does the acquisition make alcoa look like in terms of just of commodity and proprietary, meaning worth a lot more than commodity. Well, the acquisition was a small acquisition and the broader scheme of things. What it does is, its titanium and aerospace and european based so it fits nicely into our strategy which is two pronged. On the one hand building out our lightweight material innovation power house which this fits into neatly and the other thing bringing down our commodity business on the cost curve of getting world class competitive business. Lets not forget this is the second acquisition that weve done this year, smaller than the last one which got us right strong doubling up the content in the jet engine and just closed that a couple weeks ago. We also are not letting go on the organic growth. I mean we this year alone, we have announced quite a number of expansions from in the aerospace. I mean ahumanium lithium, we have a new cast, a lot in the u. S. We have a new stretcher, building a new stretcher in davenport, expansion off hampton and other nice things happening there. Now, youve also closed some plants that are expensive. I need to know whether alcoa is going to be one of the lowest cost producers of aluminum in the next couple years. Since you came in used to be a high cost provider. Seems like as you close the expensive ones and move into saudi arabia, that you should become one of the cheapest creators of aluminum in the world. Well, thats what were trying to. Lets not forget the upstream commodity business is not just aluminum. Were stronger had alumna, a better cost position already in the 30s quarter. We are strong, we have a strong position, we have a good Energy Position and were strong when it comes to value on the commodity side which is the cast house. We just restructured the organization. Youre right, our strategy has been simple. Adding capacity with saudi arabia, lowest costs on the planet and the good news is, i mean we always said by the end of this year we will have not only the smelter running as well as the we will also have the refinery running producing alumna as we speak lowest costs. Thats great. The strategy on the kind of existing assets followed a fixed close or sell situation. So i mean we fix our footprint in canada. We have a new Energy Contract which makes it more competitive. We closed quite a bit of capacity over 30 of the capacity we closed or curtailed and we Just Announced a sale of some smelters that we dont feel and also a refinery we dont feel fits into our portfolio and fits the strategy. Those were the two ones we Just Announced a couple weeks ago. One of the things that our viewers are fascinated by is 3d technology. I noticed in the tital release you talk about technology and 3d and how important this could be. What are they making 3d that is cutting edge and state of the art . We are not talking about 3d glasses. Were talking about 3d manufacturing, 3d advanced manufacturing. I would say, alcoa has a real leadership in our field. I mean, what we use it today for is, for instance, to cut down on the prototypes. What used to take about 18 to 24 months, we can do now literally in weeks. And that not only cuts the time down but the costs down substantially. Were just seeing the beginning of what we can do here. This is a very Important Technology and we are investing very strongly in it. I think we are pretty cutting edge in this field and also now, with more multimaterial capabilities this allows us to expand aluminum tie tainium. Were strong in nickel and super alloys we moved into a powder super alloy. Very nice range of different materials for different applications. Klaus, you have made this company into a company thats a lightweighting company, meaning taking share away from other mineral, from steel, say. As oil comes down i know that is good for the worlds gross domestic product, but isnt some of the lightweighting in jeopardy because people do not have to care as much about how heavy things are, because gasoline has come down so much in price . First of all, two things really. I mean one thing is, who can predict where its going to go. First of all who would have thought it would ever come down like this and who would predict today its not going to go up to similar levels than we saw before. Its very hard to predict. Secondly no matter where the price is, if you consume less, you pay less. So the savings are still there, you know. And thirdly, there is an environmental aspect which kind of counts. We saw that we just signed the Administration Just signed a deal with china. Some countries this is more essential in the Economic Policy than anything else. The whole environmental aspect. You know, so we very strongly believe in that. Actually, i mean i dont know whether you saw the release that we put out about roughly a week ago, we looked also in finding some materials, not just on the lightweighting side but crack the code. Usually the code was, if you wanted stronger, it meant heavier and less formidable. We said we looked at automotive and said wouldnt it be great if you can get stronger and later and more formable. When we came up with material like that, twice as formable and 30 lighter, than even high strength steel, we actually found a new technology for this which we coined the micro mill. The micro mill making this from hot, from hot metal into rolled coil in what used to take 20 days, now in less than 20 minutes. This is nothing short of revolutionary. Thats kind of the stuff that we are doing and thats what gives me the confidence that we are on a very, very good course here. Well, i want to thank you, Klaus Kleinfeld, chairman and ceo of alcoa on this important acquisition and the reconstitution of a great old american company. Thank you, jim. Coming up, oil insanity . The markets on a wild roller coaster ride, as crude continues to slip. But will black gold keep tarnishing the bigger picture. Cramer is helping you fuel your future, next. Heres a question for you when electricity is generated with natural gas instead of todays most used source, how much are co2 emissions reduced . Up to 30 . 45 . 60 . The answer is. Up to 60 less. And thats a big reason why the u. S. Is a world leader in reducing co2 emissions. Take the energy quiz round 2. Energy lives here. Let me give you the issue with this market in a nutshell. It would make every bit as much sense for the s p 500 futures to go higher when oil goes down rather than go lower as seems to play out every day now. Its incredibly difficult to get our arms around something thats so bullish and so positive for the u. S. Economy. Yet, its regarded as being so bearish and negative for u. S. Stocks. Think about it, i mean, really, you have to be out of your mind to believe its terrible that were all going to pay much less at the pump or for heating bills for those who still use oil to go down and the same goes for our industrials which need oil to make things and send them all over the world. You have to be beyond stupid to wonder how something that puts so much more money into peoples pockets could take so many stocks down when it occurs. Its like when i talked to Klaus Kleinfeld the ceo of alcoa this morning, and he had to remind me how positive cheaper oil is for Global Growth and how it could possibly he was kind of like chuckling at it. As oil goes down its the quiv lenchts of a stimulus package where the government sends you a check for thousands of dollars and it goes into your wallet. Thing about this stimulus versus the special interest stimulus package of 787 billion that president obama signed in