Mad Money w/ Jim Cramer

Cramer’s 20th Anniversary Special: The Rant That Shook Wall Street

Date: December 5, 2025
Episode Theme:
A retrospective on Jim Cramer’s infamous “They Know Nothing” rant during the 2007 financial crisis, the impact it had on Wall Street, Cramer’s reputation, and the lessons learned for investors and institutions.

Episode Overview

This anniversary special looks back at one of the most consequential and controversial moments in Jim Cramer’s career—his live, on-air outburst warning about the 2007 mortgage and credit crisis, when he accused the Federal Reserve of ignorance as financial doom loomed. The episode interweaves Cramer’s reflections, commentary from colleagues and critics, and pivotal broadcast moments. It explores the personal and professional fallout of the rant, Cramer’s vindication in hindsight, and the enduring lessons for both investors and regulators.

Key Discussion Points & Insights

1. Setting the Stage: Prelude to Crisis

• Background on 2007 Peak:
  • Cramer highlights the trajectory of the market leading to the 2007 crash, noting seventeen consecutive Fed rate hikes and a disconnect between policy and economic reality.
  • Cramer (01:24): “Not all days are winners in the market and knowing how to handle the down days is key… there are lessons in the really bad days that can help.”
• Early Warning Signs:
  • Cramer recalls conversations with Wall Street executives about rising mortgage defaults and unsound lending practices.
  • Cramer (02:03): “Specifically if you paid attention to me back on August 3rd of 2007 when I excoriated the Fed... oblivious to the damage it was doing.”
• Colleague Reaction:
  • Vivid recollections of Cramer’s raw emotions in the CNBC newsroom as he prepared for the broadcast.
  • Colleague (02:07): “She could literally hear the screaming... it was Cramer just screaming.”
  • Producer/Narrator (02:16): “Jim Cramer was literally the only member of the media... who understood the problem that was about to start unraveling.”

2. The "They Know Nothing" Rant: Anatomy of a Live Meltdown

• Blunt Critique of Fed Policy:
  • Cramer recounts his famous outburst, urging Ben Bernanke (then Fed Chair) to act, criticizing the Fed’s detachment.
  • Cramer (05:28): “Forget the investors... Bernanke needs to open the discount window. That’s how bad things are out there.”
• On the Brink of Collapse:
  • He details industry testimony about nearing “Armageddon” in credit markets.
  • Cramer (07:06): “No, we have Armageddon. I wouldn’t try to cause it. We have Armageddon in the fixed income markets.”
• Frustration With Complacency:
  • Cramer (07:42): “We’ll spend billions in Iraq to build homes. We are going to have thousands of people losing their homes right now... This is crazy.”
• Conflict With On-air Colleague:
  • Push-and-pull as the co-host tries to calm things while Cramer escalates his warnings.
  • Cramer (08:22): “I mean, darn, sometimes I wish I didn’t know anybody... Unfortunately, I know too many people and I’m too darn old.”
  • Co-host (08:35): “You are 62.”
  • Cramer (08:36): “I’ve been around for too long. I mean, look, I gotta tell you, [Bernanke] has got to listen.”

Memorable Quote:

• Cramer (05:28–06:32):

  “He has no idea how bad it is out there. He has no idea. He has no idea... These firms are going to go out of business. And he’s nuts. They're nuts. They know nothing!”

3. Aftermath: Consequences and Vindication

• Immediate Market Response and Turmoil:
  • Cramer describes both the backlash and the vindication as markets continued to tank and banks failed.
  • Cramer (09:38): “Whatever money you may need for the next five years, please take it out of the stock market right now... Well, sure enough, the market fell another 40% before it bottomed. It's a good call.”
• Internal Discussions:
  • Cramer and colleagues debate whether to go public with such a dramatic warning, ultimately deciding honesty trumped everything.
  • Producer/Colleague (10:03): “We had a lot of discussions... I said to Jim, 'Jim, what are we doing?' And he said, 'I'm taking the money out so that we have it.'”
• Professional Fallout:
  • Cramer became a lightning rod, blamed by some for the crisis itself, including a very public takedown by Jon Stewart on The Daily Show.
  • Colleague/Interviewee (11:58): “You knew what the banks were doing and yet were touting it for months... to pretend this was... a tsunami that nobody could have seen coming is disingenuous at best and criminal at worst.”
• Cramer’s Self-Defense:
  • He maintains that he was right, but being right did not spare him from intense scrutiny and blame.
  • Cramer (12:14): “Jon Stewart blamed me for a lot of stuff... but when you’re right, you can take it. And I knew I was right.”
  • Cramer (12:58): “I didn’t think I deserved [being the face of the crisis]. But, like in Unforgiven, deserves got nothing to do with it.”
• Colleague Support:
  • Several colleagues defend Cramer’s integrity and intent despite the controversy.
  • Colleague/Commentator (11:12): “He calls balls and strikes the way he sees it, Jim Cramer cannot be bought.”

4. Reflection and Takeaways

• Lessons for the Fed and Investors:
  • Cramer reviews the Fed’s internal transcripts, revealing they laughed off his warnings at the time.
  • Cramer (14:29): “The just published transcript of the Fed meeting after I said 'they know nothing' — I was the butt of laughter for my passion and my insistence that the Fed was clueless...”
• Cramer’s Pride in Helping Viewers:
  • Although he “failed to wake [the Fed] from their complacency,” he is proud viewers avoided steep losses thanks to his warnings.
  • Cramer (15:03): “My passion got through to you... I am proud of that.”
• Final Gratitude and Team Acknowledgement:
  • Cramer takes a moment to thank viewers, colleagues, and the CNBC team for supporting him through turbulent times.
  • Cramer (15:12): “Now it's a sin to be too reverential to yourself. But I do want to be reverential to the staff of Mad Money, the hardest working people in show business...”

Notable Quotes & Moments

• Cramer (05:28–06:32):

  “He has no idea how bad it is out there... These firms are going to go out of business. And he’s nuts. They’re nuts. They know nothing!”

• Cramer (09:38):

  “Whatever money you may need for the next five years, please take it out of the stock market right now.”

• Colleague/Commentator (11:12):

  “He calls balls and strikes the way he sees it, Jim Cramer cannot be bought.”

• Cramer (14:29):

  “I was the butt of laughter for my passion and my insistence that the Fed was clueless in its ignorance.”

Timestamps for Key Segments

• [01:24] Market warning signs, 2007 prelude
• [02:03] Cramer's background to the rant; newsroom reaction
• [03:49–07:12] Step-by-step breakdown of the credit crisis, Cramer’s rant escalation
• [09:38–10:29] Cramer’s call to withdraw money pre-crash; immediate aftermath
• [11:49–12:58] Daily Show and public vilification of Cramer
• [14:03–15:38] Reflections, team thanks, lessons for Fed and investors

Episode Tone

Fiery, passionate, confessional yet ultimately vindicated, underlined with Cramer’s characteristic blend of urgency, conviction, and sense of mission—delivered with the emotional weight befitting the gravity of financial crisis and personal consequence.

For listeners, this episode offers an unfiltered tour through one of Wall Street’s most dramatic chapters, directly from a man who risked his reputation to sound the alarm and paid the price for both his candor and his accuracy.