'RealMoney' Radio Recap: Bell Tolls for Toll Brothers

Jim Cramer isn't worried about a housing bubble, but he is worried about the Fed's determination to prick one, he said Thursday on his "RealMoney" radio show.

New-home sales remain robust, and with the exception of interest-only loans, Cramer doesn't see anything alarming in housing-market fundamentals. But the Fed seems intent on putting the kibosh on the entire housing market, Cramer said.

So Cramer is concerned about housing stocks such as Toll Brothers (TOL Quote), which reported a "picture perfect" quarter Thursday but saw its stock trade down. Action like that is the "death knell," said Cramer, because analysts are likely to downgrade Toll Brothers.

And "why not downgrade it?" asked Cramer, who noted that Toll Brothers' stock is up 120% over a year ago.

The fundamentals are great, Cramer said, but sometimes the fundamentals don't matter. Psychology and risk-reward perception sometimes matter more, and "neither are very good for Toll right now," he said. "You're going to catch a downgrade," Cramer said. "Don't be in."

A caller wanted to know if Martha Stewart Living Omnimedia (MSO Quote) was a buy, given that her new TV show is starting soon. "I liked it more at $25 than at $28," said Cramer.

That said, Cramer forecasts MSO is going up because more details about her TV show are being fleshed out and because people are starting to realize that, like Oprah Winfrey, Martha Stewart is an "incredibly investable person. That alone is worth a billion dollars" in market cap for the stock, Cramer said.

Additionally, CEO Susan Lyne is "bankable" too, Cramer said -- perhaps worth half a billion in market cap.

"People are looking at the personalities" and are buying the stock based on that, Cramer said. "The future is very bright," Cramer said. He believes the stock can go to $35.