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Jim Cramer's 'Mad Money' Recap: Where's the Rally?

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NEW YORK (TheStreet) -- The selling is no longer contained to just the high-flyers, Jim Cramer said on Mad Money Monday after a big down day on Wall Street. Cramer said the economy may be getting better but the markets sure aren't showing it.

Despite the strength in many of the recession stocks today, Cramer said our economy is most certainly not slipping back into a recession. Housing and auto sales are just too strong for that, he continued. That makes the rally in bond prices, which is pushing interest rates lower, so perplexing.

What's likely happening is what Cramer called "money-manager group think," which presumes that if interest rates are going lower then there is less demand for money. That, in turn, means less business, lower earnings and big disappointments down the road. Thus, money managers are selling now to avoid the pain they fear will be coming as earnings season kicks off later this week.

This is indeed confusing, Cramer continued -- everyone assumed a reduction in Federal Reserve bond buying would cause rates to spike up, not fall even lower. Nonetheless, the safe-haven stocks have gotten even safer. Investors are clamoring for stocks like Procter & Gamble (PG), a stock Cramer owns for his charitable trust, Action Alerts PLUS, which offers safety and a big dividend yield that got boosted 7% just today.

What comes next? Cramer told viewers not to get too negative because the selling will subside eventually, and things really are better than they appear.

Executive Decision: James Hughes

For his "Executive Decision" segment, Cramer sat down with James Hughes, CEO of First Solar (FSLR), the best-of-breed solar solutions company that currently trades at just 14.7 times earnings.

Hughes said the First Solar of today is not the same company from a few years ago. He said his company is now vertically integrated, offering everything from design to financing for solar projects, which has allowed it to broaden its customer base significantly.

First Solar has also invested heavily in technology, recently setting a world record for solar module efficiency in its labs. Hughes said in just a few years, the company will have modules hitting 20% efficiency, making them competitive with fossil fuels, even without government subsidies.

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