It wasn’t quite Mad Money on the roof of the Soho House, where Jim Cramer talked economics with a gaggle of press and internet folk this morning. But perhaps that was due to the sweltering, 100-degree heat at the Mainstreet.com-sponsored event more than anything else. After making some uncontroversial comments about the battle between digital and traditional media (example: the internet is dominating and destroying old business models), Cramer took some swipes at today’s internet/tech landscape, slamming all the me-too companies trying to build the next Guitar Hero: Guitar Hero is “amazing… but when you look at the companies that are innovating, they’re in the Cleveland Valley, not the Silicon Valley.” By Cleveland Valley, which he referred to several times, he was referring to the rejuvenated industrial firms in the midwest wrestling with $130 oil, asking themselves: “What are the big problems of mankind and how can we solve them?”

—Microsoft-Yahoo: Cramer is convinced: “Microsoft (NSDQ: MSFT) must buy Yahoo.” And he thinks Carl Icahn will make it happen. Yahoo (NSDQ: YHOO) management owns just 9 percent of the company, he stated, which won’t be enough to fend off the investor: “...the Journal owned 60 percent of the stock and they couldn’t stop (the sale).”

—CBS-CNET: A “watershed” transaction that basically signaled the acquiescence of old media. The big networks won’t be able to maintain the cash flow to subsidize loss-making digital investments, so now they’re shelling out big bucks to get in the game.