Cramer's TheStreet.com TV Recap: A Case of Options Hangover

People who consider this market a bubble remind Cramer of those market players who said there was a bubble in real estate in 2003, he said. Even though it is true that the real estate sector was in a bubble during that period, it lasted another two years, Cramer said.

Moreover, he believes people should "stay away from the industrials," as investors are headed toward "chicken" cyclicals. For those market players looking to get into industrials that aren't going to blow up, Cramer urged people to look at Honeywell (HON Quote) and Boeing (BA Quote).

What people are missing is that the Fed doesn't cut on a weaker economy, it cuts on a crisis," he said. "I believe the crisis is going to be with Ford (F Quote)."

Although Cramer said he likes Ford's CEO Alan Mulally and what he's trying to do at Ford, he "can't believe that it will pull out of this tailspin without the government's help."

Even though the automaker recently raised more than $18 billion, Cramer believes Ford will go though that money "pretty quickly."

Ford doesn't have to "go belly up," for the Fed to cut rates, he added. "All the Fed has to do is see that Ford is critical" and it would cut rates, Cramer said, which he believes would help Ford because it has short-term financing.

He also said he "loves the fact that is subprime is blowing up," another factor which should get the Fed to cut rates.