Jim Cramer Was Right About The Fed In 2007—They Still Know Nothing! (Part 1)

In August 2007 when Bear Stearns’ imploding securitized mortgage funds and the downfall of Countrywide Financial were puncturing a big crack in the housing bubble, Jim Cramer famously delivered a rant on CNBC that was heard by central bankers around the world.

The jist of it was that the collapsing subprime mortgage bubble was going to take the stock market down with it—so the job of the Fed was to immediately and aggressively open up the money spigot and arrest the sell-off in its tracks. No questions asked.