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Cramer: Europe to Collapse in 48 Hours – or Never

If we don’t see total capitulation in Europe over the next two days, Cramer said during Wednesday's Stop Trading!, investors may have to admit that the Continent is “merely” suffering a downturn. Because the repercussions from the expectations of a collapse, which have fed the negativity in the American markets and driven down stocks, can’t continue for much longer without it actually happening.

Cramer said Europe’s debt woes have sunk price-to-earnings multiples here in the States, but to such levels that could only be justified by a Lehman Brothers-type event.

If we don’t get that event, then American investors are going to have to readjust to a Europe that’s merely bad, one where austerity reigns, business slows and the euro continues to decline.

As of yet, though, nothing he has seen justifies that “dramatic” drop in PE ratios, which means that stocks just might snap back.

"Something bad has to happen soon," Cramer said. "Or else [the US] market’s going to go higher."

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