“Five years ago today the market hit its all-time top. Here we are closing in on it again.”
It seems that line of thinking caused many people to be sellers of Tuesday’s market, Jim Cramer said on CNBC’s “Mad Money.” Cramer admitted that there are some similarities between then and now. Five years ago, the markets bore witness to the mortgage crisis coming to the fore and the burst of the housing bubble. Today, he noted the market faces the uncertainly in Washington surrounding the “fiscal cliff” and a sluggish U.S. economy.
“Last time we were pumped up by ridiculous lending to anyone who needed a loan. This time we are pumped up by central bankers printing money,” Cramer said. “They are both illegitimate.”