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Cramer: Brexit fears are totally overblown

Cramer: Brexit fears totally overblown

Even if the United Kingdom votes to leave the European Union, Jim Cramer simply refuses to believe that it will be a momentous or terrifying event.

"The coverage of the story has been laced with hyperbole for weeks, but now it has entered the realm of pure hysteria," the "Mad Money " host said.

Cramer's jaw dropped to the floor by how overblown Brexit fears are when he read the op-ed by Matt Ridley in the Wall Street Journal entitled "The Business Case for Brexit."

He was stunned when he read the first sentence, when Ridley stated "In voting Thursday on whether to leave the European Union, the British people face perhaps the most momentous decision since Henry VIII broke from the Roman Catholic Church in the 16th century so he could marry as he pleased."

It's one thing to place importance on a Brexit vote, but to compare it to the protestant reformation is absurd, according to Cramer.

I think that overblown, melodramatic framing of the issue tells you everything you need to know about what is happening here.
Jim Cramer
British Union Flag
Jason Alden | Bloomberg | Getty Images

"I think that overblown, melodramatic framing of the issue tells you everything you need to know about what is happening here," Cramer said.

The "Mad Money" host failed to understand how a Brexit could be more important than its decision to get involved in World War I, which resulted in three-quarters of a million deaths in the British Isles. It is not more momentous than the English civil war, either.

"What drives me nuts about all this heated rhetoric is that Britain is already basically an a la carte member of the EU," Cramer said.

Not only does the U.K. have its own currency, but it also has more exemptions from EU rules than practically any other member state.

Most countries are part of a border free zone that allows individuals to travel freely without showing a passport—not the U.K. Additionally; the European Court of justice cannot overturn British law on the charter of fundamental human rights, because Britain is not a signatory. It even has the ability to opt out of EU legislation for topics on just or home affairs.

Britain also receives a large rebate from the EU, thus it pays lower membership fees per capita than other large or wealthy countries like France or Germany.

So, if the U.K. were to vote to leave the EU, it would certainly not rival other past events. Cramer expected that the British pound could get hurt, U.S. banks may need to transfer some jobs to London, and Bristol-Myers could pull back to $67 a share. These are not events to compare to the U.K.'s decision to fight Napoleon to the bitter end.

"Let's stick with the program and remember what matters, regardless of how overheated the Brexit rhetoric gets," Cramer said.

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