Cramer: Japan Is Not a 'Chernobyl Situation'
Stocks closed off the lows on Tuesday, as buyers stepped into the market despite the threat of an escalating nuclear crisis in Japan. Had Japan endured a nuclear meltdown, Cramer thinks the markets would have sold-off, but the "Mad Money" host said a Chernobyl situation was never really on the table.
Japan's nuclear plants have fail-safe that make a Chernobyl-like explosion unlikely, Cramer explained. There are multiple safeguards that would prevent an event of that magnitude, he added. The Chernobyl disaster is considered the worst nuclear power plant accident in history. On April 26, 1986, a power outage hit the plant in Pripyat, Ukraine SSR (now Ukraine). The outage caused a reactor vessel to rupture and a series of explosions followed. A large plume of radioactive fallout drifted over the area, causing hundreds of thousands of people to relocate.
On Tuesday, fears of a similar nuclear catastrophe were priced into the Japanese market. The concerns didn't get baked in, though, because news about fighting the nuclear disaster improved throughout the day.
Despite the horrors of the natural disasters in Japan, Cramer pointed out that the economic recovery and economy in general has improved in the last week.
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