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Now here is what will happen: nothing. No one will pay. Lawsuits will be filed and they will be fought. Morgan Stanley will have small make-goods. Nasdaq will say it is not its fault, so they don't have to pay. The government will attempt to look in to this but will be befuddled.

And everyone involved -- Facebook execs, Morgan Stanley execs, Nasdaq execs -- will not only keep their jobs but, they will get raises next year.

Makes me want to be a Chinese Communist. At least there, as crude as it is, there's some justice now and then.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.

Profit From Bogus Extrapolations

Posted at 1:26 p.m. EDT on Thursday, May 24

Sometimes this market just gets way too negative because of some short-sighted extrapolations that make no sense to me -- or, a few days later, to the market either. But they represent great opportunities you need to keep track of. In the last 24 hours, we have seen not one, not two, but three examples of this nonsense occurring.

First is PVH(PVH) . This company has a tremendous royalty stream in Calvin Klein and an amazing franchise in Tommy Hilfiger, as well as the dominant position in shirts and ties in this country. I often joke that the Justice Department should be looking into PVH because it owns one-third of the shirt market and 50% of the tie market. That is remarkable. Odds are you are wearing something the company makes or that some of its merchandise is in your closet.

But PVH makes about one-third of its sales in Europe, and even though those sales are largely made in the wealthier European countries, people can't resist betting against it. Recently, those bets grew vociferously when Fossil(FOSL) reported a terrible quarter and gave miserable guidance in part because of Europe.

So let the extrapolations begin. A short position built in PVH of severe proportions.

But when PVH reported last night, it showed no degradation at all in Europe and an amazing acceleration of sales in the U.S. with May being the strongest month of all -- something that was not yet in the numbers. Of course, the stock soared after hours and continues to climb. I think it can go still higher.