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Cramer & Ebola: Market insanity?

Police officers stand guard as the members of the press work in front of Bellevue Hospital where the doctor who was diagnosed with the Ebola disease and has been kept in quarantine, Oct. 24, 2014, in New York.
Cem Ozdel | Anadolu Agency | Getty Images
Police officers stand guard as the members of the press work in front of Bellevue Hospital where the doctor who was diagnosed with the Ebola disease and has been kept in quarantine, Oct. 24, 2014, in New York.

The great Albert Einstein defined insanity as "doing the same thing over and over again and expecting different results." Jim Cramer thinks investors might have a case of market insanity on their hands.

With each new case of Ebola, the market balks. However, though index futures started out in the red on Friday, the market had a great rebound when the Dow Jones industrial average closed up 127 points. Investors who did sell into the panic of Ebola ended up feeling like chumps at the end of the day.

"You might not want to jump the gun and sell aggressively the next time we find out that some doctor is suffering from a disease that's so far killed one person in this entire country," added Cramer.

If the stock market is going to pack up and run for the hills every time there's a new case of Ebola in this country, like the futures did last night in the case of the doctor in New York City, then Cramer thinks investors should prepare for a lot of ups and downs.

Stock prices going up on chart
Adam Gault | Getty Images

Cramer speculates that eventually the market will become desensitized, and thinks perhaps the panicking will stop altogether. Though the "Mad Money" host describes the current Ebola procedures as "a hodge-podge of self-regulation that's neither rigorous nor intelligent."

Until this disease is under control, Cramer thinks investors need to accept that there is a contagious, often fatal disease, that could cause disruptions in the U.S. Life will go on, and Ebola will be contained if not eventually cured.

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"While you can't legislate commonsense, you can enforce it. Isn't that what our Ebola Czar is for? Where the heck is the Czar anyways? Hopefully not in the Winter Palace."

So while the marketplace insanity continues Cramer wants investors to keep in mind to think twice before jumping the gun, before you end up scratching your head wondering why you sold your stocks too.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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