If we don’t see total capitulation in Europe over the next two days, Cramer said on Wednesday, investors may have to admit that the continent is “merely” suffering a downturn. The repercussions from the expectations of a collapse, which have fed the negativity in the American markets and driven down stocks, can’t continue for much longer without it actually happening.
According to Cramer, Europe’s debt woes have sunk price-to-earnings multiples here in the States, but to such levels that could only be justified by a Lehman Brothers-type event.
