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Tomorrow is a big decision day for the Federal Reserve, and those who believe that all the market needs is a quarter-point cut in rates don't really understand the fragility of the system, Jim Cramer said on TV's Wall St. Confidential Web video Monday.

Cramer said he doesn't know where people are getting this idea from. Traditionally, he said he understands the notion of gradualism; however, people need to understand that this is a tremendous moment.

Cramer: Half-Point Cut or Bust

Foreign-led buyers want to save a lot of companies that will go out of business only if they're going to be rewarded by a spike up in what is known as the net interest margin, Cramer explained. That is when cash rates go down and lending rates stay up, and the difference between the lending rates and the cash rates "gives enough of a spread that the banks can then take charge-offs each quarter against the spread" without wiping out earnings or capital.

"I don't get why people think that this is a process that can take its time," Cramer said. "It's of the essence ... particularly when we know that bank examiners are going to come in at the end of the year."

Right now, he said, the bank examiners are somewhat confused because of the federal government's plan for foreclosure forgiveness.
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