CNBC's Jim Cramer examined two recent flash crashes, telling investors how to spot similar market events.
Yet, during both flash crashes, Cramer added, investors panicked, pinning the sudden declines on the global economy or other factors.
On air during the 2010 flash crash, Cramer said he felt the crash was a "phony sell-off" as it didn't reflect the economic landscape at the time.
It later came to light that a large errant sell order caused panic on Wall Street, he added.
"I think investors weren't ready for either flash crash because, post-1987, the government had put in what are known as circuit breakers," Cramer said.
Persons:
CNBC's Jim Cramer, Cramer
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Dow