TheStreet.com TV Recap: Rate Cut Could Be Subprime's Gift

"The bottom line is things are falling into place for the rate cut," due to the subprime lending crisis, Jim Cramer said on TheStreet.com TV's Wall Street Confidential Web video Tuesday.

"If this is the pain we need to have ... you are talking about 1% of the loan market bringing down the whole market ... then that's an opportunity," he told Gregg Greenberg, the host of Wall St. Confidential.

Cramer said he believes Accredited Home Lenders (LEND Quote) will get its loans called in first, followed by IndyMac (NDE Quote), Novastar (NFI Quote) and Fremont General (FMT Quote).

That, in turn, should make the Fed realize it can't have so many companies unable to issue mortgages, he said.

Broker Brakes

Cramer said he's been adamant that people not buy Goldman Sachs (GS Quote) today but rather wait until Friday, "when the smoke clears" on the subprime fears.

Cramer, who owns shares for his charitable trust, Action Alerts PLUS, said Goldman is going to be "tied unfairly" to the subprime crisis.

The investment bank "killed the number," yet it is "literally selling at a Lennar (LEN Quote) multiple, and Lennar is a hack company compared to Goldman," Cramer said.

However, he believes Goldman shares should be taken down here because it didn't have the subprime collapse.

"People have to recognize it's legal to take stocks down now ... and it's a great weapon," Cramer said.

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