Cramer's 'Mad Money' Recap: Negativity Overdone (Final)

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NEW YORK (TheStreet) -- "Things may seem tough now, but they're nothing compared to 2008," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday, as he tried to put the current market woes into a little historical context. "This isn't the eve of destruction."

Cramer said with the events of the financial panic of 2008 so engrained in our minds, it may seem like every crisis needs to have a 6,000 drop in the Dow, but that's just not the case. The current crisis in Europe is not as dire as the U.S. crisis, where the entire financial system of the western world hung in the balance, he said.

Cramer said the markets have seen crises like Europe before. He recalled the the Asian and Russian crises from 1996 to 1998, and the savings and loan crisis from 1989 through 1991. In both cases, Cramer said there was money to be made in stocks like General Mills (GIS), Pepsico (PEP) and Kellogg's (K).

While Cramer said caution is still warranted in this turbulent market, he said he doesn't expect a repeat of last year's bone-crushing market retreat to Dow 6,500. In fact, even his worst case collapse of Europe scenario only pegs the Dow at 8,260, he said. This may be a bad market, he said, but it's not terminal.

Cramer said Federal Reserve Chairman Ben Bernanke agrees, making comments this week that a double dip recession is unlikely. The reason? Cramer said it's because we've learned how not to fail. He said that Europe has the benefit of our experiences and won't repeat our mistakes.

"Don't let this market fool you," Cramer concluded, "this is not a repeat of 2008."

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