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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.
Dimon's 'Must Read'
Just about everyone has become a "risk expert" now that the mistakes of 2008 are finally fading into history. That was Cramer's takeaway after reading JPMorgan Chase (JPM) CEO Jamie Dimon's remarks in his company's annual report.
Cramer said that JPMorgan, like all financials, now sees risk behind every rock in our post-recession landscape. While Dimon's comments overall were upbeat, they were also riddled with warnings against making risky investments again.
Cramer called Dimon's remarks a "must read" for all investors because it's a perfect reminder in today's market that the mistakes of the past could indeed happen again, even with the mountain of new regulations aimed at preventing them.