Cramer on BloggingStocks: Assigning blame after Friday's market plunge

Can these be explained together? I don't think so -- not one bit. If you get a strong dollar, you would be getting that because our economy is thriving and the government is about to raise rates, making the dollar more attractive. At the same time, the defensives are rallying, totally confounding us. You can't have the Fed about to raise rates when Pepsi (NYSE: PEP) (Cramer's Take) and Coke (NYSE: KO) (Cramer's Take) and General Mills (NYSE: GIS) (Cramer's Take) and Kellogg (NYSE: K) (Cramer's Take) are rallying. That's not going to happen. Meanwhile, the companies that do the best with a weaker dollar are the defensives in translation and industrials in competitive situations. So a strong dollar's bad for both, but only the minerals and mining and industrials reacted negatively when the dollar rallied.

These prisms, as I said at Oklahoma last week, are simply false and can't make you money. They simply don't correlate as much as we want them to correlate. It would certainly give us some framework and some gravitas, but these themes are like the ProShares UltraShort Financials (NYSE: SKF) (Cramer's Take) -- they are good for one day at a time, then they reset and the past is forgotten.

The overriding concerns I saw last week were the need for mutual funds to take profits so as not to surprise investors and the need to lock in gains and get capital ready for redemption for the discredited hedge fund class (thanks to Galleon). The latter feels very straw-that-broke-the-camel's-back in nature. In fact, I am sure that many are questioning the whole notion of the big research firms, just as they questioned the notion of the big quant firms last year at this time.

Of course, the other proximate causes don't make that much sense, either. A tax deferred call that's negative for banks by Mike Mayo had impact, but his research is sketchy at best. CIT (NYSE: CIT) (Cramer's Take) bankruptcy? No kidding, that's been with us for months, and only the stooges playing the common are fooled. Wilbur Ross' call for the catastrophe of commercial real estate? That's new? How can that be new?

Look, we can pin the tail on any donkey: Citigroup (NYSE: C) (Cramer's Take) reserves, gold declining, weak phone and PC sales, whatever. The simple fact is that 2009 has been a fantastic year for performance, and if funds didn't take something off the table they would be considered reckless to the extreme, especially in light of 2007-2008.

There. That's an explanation I can live with, an explanation why this day may not turn out to be the terrible session that so many predicted when we left Friday.

Random musings: Denbury (NYSE: DNR) (Cramer's Take) buying Encore (NYSE: EAC) (Cramer's Take) is pretty big news -- the consolidation's very meaningful to this sector, which has way too many players.

Jim Cramer is co-founder and chairman of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long Pepsi.