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Why Jim Cramer’s 2007 ‘They Know Nothing’ Rant Gives Him Faith in 2020 Fed

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3:48

Jim Cramer said that this time around, the Fed knows something. 

In case you missed it, back during the 2008 financial crisis, Cramer went on a rant--which nowadays, would have been considered viral--about the Fed and its response to the financial crisis. 

This time around, however, the Fed is on the right track according to Cramer. 

Watch the full video above to see why Cramer thinks this time is differed. 

Video Transcript:

Katherine Ross:
Jim, you said something that really sparked my interest a little bit ago. And that was that you actually trust the people at the helm this time. Whereas in 2007, 2008 on as I'm sure that all of our viewers know, you went on that epic rant...

Jim Cramer:
I speak to them. Captain, I would speak to them, and it's like, "Oh well, moral hazard, this. Oh, that guy this and they took down too much debt. Oh, they don't know what they're... Oh, and they're unhedged and they..." And it's like, "Oh God." It's like, "Guys, we're going to lay off millions of people and we'll punish..." I said, "Why don't we punish the people who did it wrong and worry about the working person?" Well, they didn't punish the people who did it wrong and they didn't worry about the working person. And that's why we had... Why did we have the greatest since the great depression? Because the policymakers were uniquely worried about someone. I don't know who. And it was scary to me that they all seemed to be paralyzed. They were worried about whether they are breaking the rules. And it's kind of like Lend-Lease against the Axis where Roosevelt knew he was breaking the rules.

Jim Cramer:
He knew that we had a country that was deeply committed to America first. But he found a way to get what Britain needed. And the could say, "Well, Churchill had too much influence." But you know what? You need historical analogies here. You need to recognize when our presidents and our cabinet members acted without thinking about what necessarily where the niceties of the law. And this is one of those. I mean, we've got this 13(3) that was set up by Dodd Frank, which says that the treasury can't do this, and if the Fed can't do that, maybe we need Congress people to do that. Well, no. Just do it. I mean, a long time ago I learned that if you knew in your heart and your head that something was right, but it wasn't what was accepted, it's better to do it and apologize than it is to ask for permission.

Jim Cramer:
And everybody, back in 2007, 2009 was asking for permission from people who didn't have the ability to give them permission instead of being creative and doing and then accepting the consequences that perhaps they aired too much in the way of solving things. I keep coming back to Dr. Fouche who is an amazing man who keeps saying, "We've got to do more and more and more and more." And we do. But in order to be able to do that, that means we have to take a deeper recession and deeper recession and deep recession. So every time we help Fouche we have to be aware that we have to help the working person. And it's the working person. We don't want to help the CEO of American Air. But we want to keep the people who work from American Air working for American Air. And that's what has to happen.

Katherine Ross:
And this time they are focusing on the working person, correct? That's what I'm hearing?

Jim Cramer:
They are. I think Mnuchin is. I mean I don't think if you do it with payroll, the payroll tax cut, I mean that is an unthinking way. I don't care if people will say in administration... I own a couple businesses and we're trying to figure out how many people to lay off. These are 1099 employees. They are not in the line. They're not going to get hit. A payroll tax cut means nothing. Okay. They are typical of what's in America. That's the working person. And somehow the working person has been conflated...by the Republicans and by my old friend Larry. I think it's something great. And I think that there's another scheme which just says, "Okay, you want to elect Present Biden? Just go with a payroll tax cut. It doesn't help the working person. It doesn't help the guy who's laid off today from Dave and Buster's.

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