But Cramer offered up another reason why the market is selling off. The short squeezes that held stocks afloat for so long are coming undone "because sellers are coming out of the woodwork."
Just look at Under Armour. UA was upgraded Monday and is down about 16% since. PMI Group, Ambac Financial and MBIA are all victims of the same trends, according to Cramer.
"There's true panic out there," he said, adding that the panic was still "in its infancy."
Yesterday on Stop Trading!, Cramer spoke with Carl Icahn about WCI Communities, a Florida condo developer in which the activist investors has a stake. Turns out the stock is up 20% Thursday after Icahn scoffed at concerns WCI would go bankrupt. "The balance sheet is really bad there," Cramer admitted, but Icahn's "had many more wins than losses."
Lastly, Cramer can't understand why Comcast's Brian Roberts is taking so much heat when the whole industry is struggling. "I think that the family that built that company and Brian Roberts have done a miracluous job. it's just a very tough environment."
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