Jim Cramer Said Bear Stearns Was "Fine" and Called Worried Investors "Silly." Five Days Later It Sold for 98% Less.

A viewer called into CNBC's Mad Money asking whether he should be worried about his money at Bear Stearns. Cramer didn't just reassure him — he practically screamed at him for asking. "That's just being silly!" Two days later, Bear Stearns experienced a catastrophic bank run. By March 13, the 85-year-old investment bank was broke. On March 16, JPMorgan swooped in with a Fed-backed fire sale, buying the firm for $2 per share — down from $170 just 14 months earlier. The video of Cramer's confident dismissal became one of the most replayed clips in financial media history, a monument to the dangers of trusting television pundits with your life savings. Cramer later defended himself by claiming he was talking about customer accounts, not the stock. The viewers who held their Bear Stearns shares found this distinction less than comforting.