Cramer's 'Mad Money' Recap: Doomsday Scenario

Every deal that needs financing to complete could fall through, and companies could experience big losses.

All of this is the worst-case scenario. However, "this isn't going to happen," Cramer assured viewers. "The worst-case scenario will be derailed." And even if it does happen, people can still make money in the market, he told viewers.

Avoidance Factor

Two things can happen so that the worst-case scenario is avoided, Cramer said. First, "we can get help from abroad," he said. "If things get cheap enough, we'll start to see buyers from overseas" take stocks higher.

Alternatively, if the Federal Reserve listened to the first part of Cramer's show and agreed with it, "all the doom and gloom will just go away," Cramer said.

If the Fed cuts by one percentage point, all of the problems he previously mentioned would vanish: The housing glut would go away, and homeowners would be able to refinance their loans.

Countrywide Financial CFC, DR Horton, Pulte Homes, Centex CTX and Lennar LEN would all profit from a rate cut, he said. Bear Stearns BSC, Goldman Sachs GS and Citigroup C, the latter two of which Cramer owns for his charitable trust, Action Alerts PLUS, would move up as well, Cramer said.

If there was a full-point rate cut, then the Dow would go straight to 15,