Cramer's 'Mad Money' Recap: Whitney's Stunning Reversal (Final)

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After four "miserable" weeks, the market took a significant turn when an influential bearish analyst surrendered, Jim Cramer told told viewers of his "Mad Money" TV show Monday.

He said that noted analyst Meredith Whitney's upgrade of Goldman Sachs (GS Quote), a stock which Cramer owns for his charitable trust, Action Alerts PLUS, finally signaled the surrender of one of the last holdouts of market naysayers.

Cramer said Whitney's bearish views towards the financials have been wrong for months. However, since many investors follow her, her change of tone is significant enough to send the markets higher today.

According to Cramer, naysayers like Whitney have assumed that 100% of the adjustable rate mortgages taken out between 2005 and 2007 would default. Even if this were true, said Cramer, the banks have already written off more than $1.4 trillion of loans under a 100% default rate scenario.

Cramer said it doesn't matter why Whitney changed her mind, or why she was to late to do so. He said it just matters that a noted bear has embraced the bulls, and that will only help the markets begin to recover.