As stocks nosedived on recession fears Thursday, Cramer brought a little perspective.
Just last week, U.S. Treasury Secretary Timothy Geithner said there will not be a European Lehman Brothers, Cramer reminded viewers. Despite Europe's debt crisis, Cramer said we're not on the verge of repeating the 2008 stock market crisis. It may have the same look and feel, but Cramer said today's market environment is not worth. It's just different.
In 2008, the center almost didn't hold. Trillions of dollars in capital were lost before we found the bottom, but not before many financial institutions were forced to merge or folded. The market dealt with most of these collapses pretty well, but Cramer said the decision to let Lehman Brothers fall is what lead to a collapse in credit followed by the Great Recession.
"Geithner simply said there will be no more Lehmans. That means there will be no more catastrophes that freeze credit and throw the whole world back into Great Recession Two, a sequel that could be more grim than the one we just went through," Cramer said. "He took another Lehman off the table. Nothing else."
But no more Lehmans doesn't mean there won't be more pain, Cramer said. Until policymakers arrest global economic stagnation, there will be more pain. Until European leaders, well, lead and fix its debt crisis, there will be more pain.
"Until we get more clarity in Europe, our only defenses will be cash and higher yielding stocks, which will now shine given the paltry competition from our bonds," Cramer said. "No need to be a hero, until there are actual heroes in Europe. Wait it out. Stay the course."
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