Booyah Breakdown: Landing Fear

While Cramer too is looking for a soft landing, many of you still don't know what he's talking about. Clearly, he's not shopping for a goose-down pillow or a cashmere blanket.

Well we're here to clear up the confusion and help you understand the difference between an economic hard landing vs. a soft one.

OK, but first, where are we landing from?

The top, baby! The market has been on fire. The Dow Jones Industrial Average is at all-time highs, and the economy has so far been able to weather a tough housing market.

But you know very well that what goes up must come down. It's your typical business cycle.

So if we do fall, will it be a downhill slalom plunge or a nice leisurely bunny hill through the mountains?

Hard vs. Soft

Let's start with the downhill slalom that slams you into a tree, a.k.a. your hard landing.

The economy has been en fuego. But with that growth comes inflationary pressures.

Here's why: People have money to spend when things are good. Then retailers start to push prices up, because people are willing to pay more. So if a pack of gum is $1 this year, inflation will cause that same pack of gum to be a $1.10 next year. So as inflation arrives, you can buy less with your money.