Cramer explains the rapid sell-off: ‘When the market’s not trustworthy, no one buys’

With vends reeling, one theory that has surfaced to explain the sell-off is that it was spurred by the bond market. But CNBC’s Jim Cramer isn’t convinced.

“That’s just one theory,” the “Mad Means” host said. “Let’s say it’s the earnings that were driving the rally. Then I could denote stocks as an asset class aren’t that overvalued, so you can buy the weakness, peculiarly because the whole market has already become a heck of a lot cheaper in the final few days.”

The problem is that the inverse volatility trading products that Cramer has been criticizing against are clouding the real reason for the sell-off, making it difficult for him and others to discern whether sticks or earnings are to blame.

“Look at like this: we know we’re taking antagonist fire, but we won’t know where it’s coming from until the VIX-related smoke keens,” Cramer said.

As issues in the volatility market become more widespread, Cramer fearful that investors might give up and decide that they don’t impecuniousness to lose any more money so quickly.

“We’re now in a place we’ve visited a couple of times beforehand where you just can’t trust the prices,” he said. “People don’t care if it’s because of manacles or VIX blowups, do they? They just know that the market isn’t insert right, or if it is working, it’s working against us.”

Traditional metrics like price-to-earnings multiples or earnings sensations don’t matter to investors, either, the “Mad Money” host added.

“When the buy’s not trustworthy, well, after a while, no one buys. They sell,” Cramer denoted. “And they keep selling until prices stabilize and/or mean something pertaining to the value of the enterprise underneath.”

Cramer found it important to note that this compassionate of market “vortex” will keep weak-handed buyers out of the market until old recover, no matter how low prices go.

Even if stocks become downright cheap or attracted by rates somehow decline, investors won’t risk stepping in the metaphorical quicksand, he reported.

“What can I say? That’s the situation we’re in and until the big volatility bets unwind, … we’re active to be stuck in kind of like a no man’s land,” the “Mad Money” host concluded. “I can’t take in it better, but at least I can explain what’s happening so you don’t drive yourself eager wondering what the heck is going on.”