Editor's Note: This article was originally published at 7:32 a.m. EDT on Real Money on June 25. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.NEW YORK ( Real Money) --So where are the sellers? Where are the motivated sellers from Monday -- motivated for why, for what? What were they so scared about? Yesterday the market had a whoosh down that was classic in its intensity and its extremes. It looked to wipe out all of the sellers. Just take a look at those intraday lows. Not only that, but using the excellent work of Options Profits writer Mark Sebastian -- and I urge you to read his stuff -- there was an intraday moment when the CBOE Volatility Index (VIX) stopped going up even as the S&P 500 kept going down. That was a signal that the fear had petered out and that it was time to get long. Yet, the close was hideous and a total give-up. Here's what I think happened. We are at a perilous moment when pretty much every market has a shot of breaking down on any given day. Look at the globe. We're seeing tremendous instability in Japan right from the top. There's an amazing weakening in Australia, given its commodity-based economy, coupled with a too-eco-friendly government. China? All I can say is, in the words of the Beatles: You say you want a revolution? I think the people do. They are tired of not being able to see their feet. They are tired of the repression. They are tired of the government creating military sideshows in order to take peoples' minds off the miserable day-to-day. Meanwhile, the flash purchasing managers index came in below 50, signaling a slowdown. Yet, even in light of this, the one thing no one is talking about is the potential for an actual collapse, as we saw among bad banks in 2008 and 2009. Why don't they? Their banks are apparently all a bunch of Washington Mutuals. China's looking a lot like a paper tiger. The Philippines and Indonesia have built up stock markets in the last few years that need money from outside in order to grow -- and any country that needs money had had hot money that's now coming out of it. They're classic hot spots that no one is paying attention to.
Thailand? What can I say? Will they ever learn? Russia, meanwhile, has suddenly morphed into a bear market from who-knows-where. Europe? The tone has gotten bad again with a recognition that there is still no growth to speak of -- and, while things have bottomed, that country never fixed its banks. Plus, France has the worst government in Europe. Unlike in Spain and Italy, France simply doesn't get it at all, and is going backwards. They are lucky in France to have a government that is so cozy to the banks. Otherwise that sector would be revealed, perhaps, as no better than that of Italy or Spain when it comes to risk control. As for India, it's putting controls on everything that moves, and it seems as if the country is having actual stagflation, which is the worst and most intractable of problems. Over in Latin America, a million people are taking to the streets to oppose the "Let them eat the Olympics and World Cup" style of infrastructure. No one even knows what a new government would look like, but this one is the height of instability. Brazil's richest man, Eike Batista, seems to have his now-poor tentacles everywhere while the commodity-based economy truly falls apart. At the same time, the economic miracle that is Mexico has totally fallen apart, and all I can say is, "Have you seen that ETF?" The iShares MSCI Mexico Capped Investable Market Index Fund ( EWW) is just in free fall, in part because new President Enrique Pena Nieto has decided to tackle the most intractable of interest groups: the two cartels who have run that country, the drug cartel and the rich family cartel. The companies that dominate the exchange are all potentially in the crosshairs of a reformist who wasn't elected to bring reform. It is against that backdrop that the Federal Reserve signaled that perhaps things are getting better faster in the U.S., although the only things that were really getting better were autos and single-family homes. However, the Fed's balance sheet had gotten out of control, and the world's largest trading desk -- the Federal Reserve -- had to face up to its role as the big swinger in the bonds. That's something no one wants to be, because Chairman Ben Bernanke was more trapped than even the London Whale. So I guess that, in the end, you can't blame anyone for panicking in the last hour, betting that one of these powder kegs wouldn't go off. But they didn't. The 10-year U.S. Treasury is coming down in interest, and the seller? Well, all I can say is that they'd better be a long seller. A short seller is in a world of hurt -- at least at the opening. At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the securities mentioned.