Jim Cramer foams at the mouth

Jim Cramer, the overly enthusiastic host of "Mad Money," became apoplectic just prior to the market's collapse on Friday afternoon on his CNBC "Stop Trading" spot. Cramer's ranting focused on the need for the Fed to drop rates to save humanity. It came across more that the Fed needed to drop rates to save Jim Cramer's portfolio.

The reality of the situation is if the Fed had to desperately lower rates, gold would be crashing, as was the case in the late 1990s. It is interesting looking back to what everyone was calling the Goldilock's economy then, and seeing that gold was saying otherwise. Gold proved to be correct. Remember that in 1998, oil sold for only $10 a barrel.

Today, the opposite is true: gold has formed a plateau in the $600 price range and oil demand remains strong, with its price approaching $80 per barrel.

All told, despite Cramer's ranting, liquidity is getting a little tighter and the Fed should begin dropping rates in October. I wouldn't worry too much, the sky is not falling despite what Cramer may say.