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NEW YORK (
) -- "This is the opposite of a bubble," Jim Cramer told his
TV show viewers Wednesday, as he took on the critics and skeptics that are comparing today's markets to the last time the
Dow Jones Industrial Average
Cramer said that when the Dow hit 13,000 the last time, the markets were rallying on the growth in Brazil, Russia, India and China, and not on U.S. growth. He said everyone was profiting off of the growth in commodities. At the same time, he added, investors thought that the banking system was solid and were fraudulently led to believe that housing prices could never fall.
But today's markets are different, said Cramer. Back then, shares of
Bank of America
both traded at $44 a share, he noted. Today, Bank of America sits at $8 a share and Alcoa struggles to stay above $10. "This market is irrationally un-exuberant," said Cramer.
Cramer said when he looks at the 30 stocks that make up the Dow, only two, Alcoa and
are worrisome. He said the banking stocks are on a much better footing than they were in 2008. Likewise with the drug stocks, which now have dealt with their patent expirations and have excellent balance sheets. Cramer said that sector by sector, companies are doing better.
"There are no bubbles here," Cramer concluded, saying that the markets would have to rally substantially from today's levels to even come close to how overvalued they were back in 2008, when a host of global-economic crises were ahead of us instead of largely behind us.