TheStreet.com TV Recap: Hold Your Fire

He believes that people will take advantage of what he called "an interesting opportunity" to buy Caterpillar at a very low multiple in 2007.

Further, he said he heard nothing on the Caterpillar call that was positive about housing.

"Housing and lenders in the subprime category will bottom only with the help of the Fed," Cramer said. "The idea that the glut will work itself off without government help is a misstatement of what will happen." He said his bullish thesis of a rate cut is predicated on the verdict that we will not see a bottom until we get government aid.

"The people who are propounding the thesis that the Fed can stay the same or raise rates are flying in the face of all history and I'm uncomfortable with doing that," Cramer said.

However, he does not believe it will happen until May because that will give enough time for Ben Bernanke to have been Fed chairman and for the Fed to see a year-over-year downturn in commodity prices.