Cramer's 'Mad Money' Recap: Politics, Education and the Markets

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The market was up today, and people believe it's higher for any number of reasons, Jim Cramer told viewers of his "Mad Money" TV show, which was broadcast Wednesday from Boston College as part of his "Back to School" tour.

"But it's really that high because 'Mad Money' has come to Boston College!" Cramer said to the cheers of his live audience of students.

All joking aside, the market believes the Republicans might win the House in the November elections, and that's why it's been moving higher, Cramer said.

To talk more on the topic of politics, Cramer welcomed the host of NBC's "Meet the Press" Tim Russert to the show.

"Hank Paulson [the U.S. Treasury Secretary] is doing a great job," Russert said.

Paulson came to Washington with bipartisan support, which is unique. Paulson had people who knew him, and they invested in him, Russert went on to say, adding that the government also believes that Paulson "can speak to the markets."

Right now the Democrats need to win 15 House seats, Russert said. Although they've probably won two or three already, if the elections were held today, it's difficult to say whether they'd win or not, he said.

The Democrats could gain 10 to 20 House seats, Russert continued. "But everything will change if they take over the House."

Drug companies could also see profits go down if the Democrats win, Cramer said.

When Cramer asked about the No.1 political issue that could affect the market, Russert said, "the one real fear that exists in Washington is terrorism."

Not necessarily another September 11, but people in Washington are "stunned that we have not experienced suicide bombers," Russert said.

Welcoming Boston College student and Russert's son, Luke Russert, to the show, Cramer asked him what types of stocks he liked to invest in.

Luke said he was a part of a "blue-chip stock family" that holds on to stocks once purchasing them. Some stocks he said he has held are Wal-Mart (WMT Quote) and Nike (NKE Quote).

When Luke asked Cramer about Sirius Satellite Radio (SIRI Quote), Cramer said it needs to merge with XM Radio (XMSR Quote).

If that happens, both stocks will go high, and "you can have an overnight hit," Cramer said.