According to CNBC’s Jim Cramer, the almost 1,600 point drop that the stock market just had is a “flash crash.”
According to Cramer, the stock market couldn’t handle the current volume of trading.
The “Mad Money” host said, “The market got phony again.” He said, “It’s a shame. It can’t handle the volume and it can’t handle this level of selling.”
He explained on “Closing Bell,” that, “the markets showed the same lack of class and power and honesty and truth that we have seen in every kind of these flash crashes.”
He says the market went up very fast since 2018 started and sank even faster.
“It’s OK,” he said. “It happens periodically and it freaks people out at home. We can spin any tale we want, but what I am saying is that the market doesn’t work at certain points.”
“I see idiots coming in and selling and I see it’s too fast to buy. Just remember the flash crash a few years ago, another flash crash a few years ago. When the market can’t handle this kind of trading you get this,” he remarked.
“But don’t freak out. Look for something you like to buy,” he assured.