NEW YORK ( TheStreet) -- Debra Borchardt: The ECB left rates unchanged. Pretty much what we expected. So Jim, are we starting to think that things are maybe stabilizing over in Europe? Last week it was all about Spain and Italy and things were getting worse again.

Jim Cramer: I don't think things are stabilizing. I think things are still bad. Now, we see some countries doing better. Scandinavia is doing better. The UK is doing better. Germany is doing better. This is a callout from Ralph Lauren ( RL). They did that last night. We've also seen it from PVH ( PVH). We've seen it from a number of companies talking about Europe not going down anymore, but Europe is still weak if you look at car sales, Europe is still weak when you look at Spanish banks.

Debra Borchardt: We were just talking about News Corp ( NWSA) and Italy.

Jim Cramer: There is enough anecdotal that there is no reason why they don't take the rates down. It would shock the system. It would lower the currency. They want the currency lowered. You have this inconsistent Draghi comment saying, "Look, things can get bad, we want the currency lower." If you want the currency lower cut the rates. Get things better. Do what Bernanke did. His inconsistency is spilling over into our markets. Our markets were looking pretty good today until Draghi said there's a lot of risk here.

I was listening to Bob Rubin this morning, my old boss, and he used to be at Citi ( C). You may have plus or minus views on Rubin, but he did say that he thinks that we've gotten too complacent about Europe.

Debra Borchardt: It's been going on for years.

Jim Cramer: I know. Tell me about it.

Debra Borchardt: They've had meetings about meetings and more meetings.

Jim Cramer: So far this year it hasn't affected us, but maybe now it will. I was going back and forth with my colleague who writes for us, Matt Horween this morning. He said, "Listen, don't be complacent about Europe."

What I've been saying is, it hasn't impacted us. It hasn't impacted us. You had a big percentage move in January because it wasn't impacting us. Well, new calender month, new talk -- impacting us.

I think that the combination of the guy wanting the currency lower -- which then makes it so that we feel like, well perhaps we're going to lose our advantage because of a weaker dollar -- and not doing anything with the rates, is an unholy move and making it so that our stocks could get hammered. We were talking about flow of funds into international funds.

Debra Borchardt: Right. We've definitely seen the inflows on the equities side, much bigger . . . huge record numbers in January. I believe 65 billion. We're seeing these numbers continue into February, going into the global equity funds, which I felt was very interesting.

Jim Cramer: Right. Why there?

Debra Borchardt: So, is that investors seeing value there?

Jim Cramer: I think a lot of people . . . we think that is undervalued. Now, Europe has already moved a lot, Europe had a good move.

Debra Borchardt: But that's a play that Europe's going to come up.

Jim Cramer: In terms of the conundrums right now, you have parts of Europe doing well, but they could falter. You have other parts of Europe with 25% unemployment like Spain, although they have off the books income. You say to yourself, well why are their rates still higher than us? They're in much more tenuous shape. You have a currency that still makes no sense to a lot of people.

So, let's put Europe back on the radar screen on the international stocks. Let them take down the domestic stocks...Europe take down domestic stocks like retail, which are weak this morning. I think it's more of an S & P issue. The good ones are week along with the bad ones. Then say that housing is going to continue to rebound so you buy those stocks into the weakness.

Debra Borchardt: I was going to say, when we were talking about Draghi and his comments, last week we had Germany saying that they wanted their gold back and they were talking a lot of their physical gold back. That's got a lot of people a little on edge about Europe.

Jim Cramer: Well yes, that's another great point. What is that about? Do they not trust the system? Europe is not a black hole of uncertainty. Europe is a negative. We had hoped that it would be a neutral by now, but it's still a negative. That's how I weigh it.

Debra Borchardt: OK. As Jim is saying, we're just not out of the woods yet on Europe.

Jim Cramer: Don't be complacent.

Debra Borchardt: Don't be complacent. Keep that eye on Europe right now.

-- Written by Debra Borchardt in New York

>To contact the writer of this article, click here: Debra Borchardt.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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