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NEW YORK (TheStreet) -- Investors won't find the reason for Thursday's market meltdown on Wall Street or Main Street, Jim Cramer told his Mad Money viewers Thursday. Those answers will be found overseas.
Cramer explained that the news from America was actually very positive today, with jobless claims the lowest since 2007 and the smallest federal budget deficit in ages. Yet, despite this good economic news, bond prices still raced higher, sending interest rates sharply lower.
There wasn't any earnings news that would've sent stocks plummeting, Cramer continued. Rite-Aid (RAD) reported a great quarter, sending shares up 8%, and Bed Bath & Beyond's (BBBY) lackluster numbers weren't important enough for the markets to notice.That only leaves overseas, particularly China and Greece, to explain today's meltdown. Indeed, a continuing parade of horrible numbers from China continued Thursday, and a bond offering in Greece was most disappointing. That news sent investors searching for yield, said Cramer, which explains why a great company with no dividend, Chipotle Mexican Grill (CMG), got crushed while a not-so-good company with a yield, McDonald's (MCD), was able to rally. So while everything went right in America, Cramer concluded, everything was going wrong in the rest of the world -- and that apparently makes all the difference.