One thing that really jumps out to Jim Cramer about the economy and stock market is there is just too much of everything! From his experience, he knows that means the stronger companies start to gobble up the weaker companies to eliminate overcapacity, leading the market higher like it did on Monday.
"That's why hardly a day goes by without a deal of some sort, because the CEOs in this country are well aware of the overcapacity," the "Mad Money" host said.
That is exactly why there were more deals announced on Monday, such as Endo International buying the privately held Par Pharma. In Cramer's opinion, there are way too many generic drug makers out there, anyway. Between Endo, Par, Actavis and the rest, they are all competing for shelf space.
Yet another competitor was taken out of the group, which should lift margins for everyone.