For investors struggling to make sense of the market, Jim Cramer turned to the history books on his "Mad Money" TV show Friday, and made some startling discoveries. Leafing through John Kenneth Galbraith's The Great Crash: 1929, Cramer was struck with by the many parallels between the crash then and today. He said that after the "big" one-day crash in 1929, the market continued to decline slowly, week by week and month by month, for over two years until 1932. One stock that went through both events was US Steel ( X). During the Great Depression, US Steel fell from a high of $262 a share all the way down to just $22 a share two years later. By contrast, US Steel already has fallen from its high of $196 a share this year to just over $34 a share at today's close. The similarities are striking, he noted, but what took two years in 1929 has taken just five months this year. "We've already crashed for many stocks," said Cramer. But unlike 1929, the economy hasn't, and that has Cramer perplexed. Back in 1929, unemployment hit a high of 25%, but today it's just 7%. Cramer said with so many safeguards in place, the economy is unlikely to see such a huge downturn again. But he's not as hopeful about the markets, which are still unwinding at an accelerating pace. Cramer said that at this point in the cycle, he actually hates the rallies. "We need the velocity to accelerate and for people to just give up," he said. Only after all of the panic and forced selling is over can we finally call a bottom, he added.
Cramer: Don't Buy on Billionaire Sells