Jim Cramer's 'Mad Money' Recap: The Fed Tapers? So What?

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NEW YORK (TheStreet) -- Weren't the markets supposed to plummet when the Federal Reserve stopped its bond buying? That was the question Jim Cramer pondered on "Mad Money" Wednesday. Cramer said after all the panic and all the worry, it turns out the Fed knew what it was doing after all.

Cramer said the Fed has come a long way since his infamous "they know nothing" rant in 2007. Back then, Cramer said Fed Chair Ben Bernanke didn't see the gravity of the situation and didn't act quickly enough to prevent it. But ever since then Bernanke has been doing everything in his power to save the economy, Cramer admitted, and for that he deserves a "job well done."

The Fed's ultra-low interest rates allowed countless companies to refinance and fix their balance sheets, Cramer noted, while countless others were about to stay afloat where they otherwise wouldn't have. The Fed was able to compensate for Washington's inaction and budget wrangling and for the near-collapse in Europe, he added.

But despite all these successes, Cramer said that many people still misjudged Bernanke, a man who has not once taken any credit for saving us all from the brink of financial collapse. Bernanke was able to change on a dime, Cramer said, and for that, we all owe him a debt of thanks.

There's nothing left to stop this rally only reasons to buy, Cramer concluded,.

Break Up the Conglomerates

There's one surefire formula for value creation, Cramer told viewers, and that's breaking up huge conglomerates into smaller, easier-to-digest pieces.

Yes, the parts are indeed worth more than the whole for most companies and the analyst community tends to specialize in certain areas and simply cannot make heads or tails of a company that tries to do it all.

Cramer said this formula has been tested time and time again, from companies such as Abbott Labs to Phillip Morris , the latter having more than doubled its value since splitting of its domestic and international divisions.