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Why Didn't Cramer Call the Top?

Why didn't you call the top? That's one of the questions Cramer has been getting lately and on Thursday, he took time to address it.

We were doing OK before Washington began to debate the debt ceiling, Cramer said. The talks hurt us, though. He thinks it might have put the country into a recession when there was none just a few weeks ago. In addition, there has been a fresh collapse of any plan to resolve Europe's sovereign debt crisis.

"Long story short, the facts changed. I often find that people have a lot of trouble understanding the fluidity of a given situation. They think that if the economy is good and I come out here and say it's good, and then big fundamental changes occur for the worse, then it's my job to stay positive and just deny that anything has shifted dramatically," Cramer said. "But that's no way to manage money.

"A foolish consistency is the hobgoblin of little minds and lousy portfolios. When the facts change, you have to change your mind."

Cramer said there was no telling the government would almost fail. He couldn't have known politicians would have risk the U.S. defaulting on its debt. As far as Europe goes, Cramer said we've been lied to by government officials about how bad things are over there. In the end, he said nobody is right all of the time.

"The fact is, predicting the end of the world has been a big loser until the last couple of weeks," Cramer said. "The bears may have sidestepped the last 1,000 points of downside, but to do that most also missed 6,000 points of upside."

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