Cramer's 'Mad Money' Recap: In Case the Fed Does Nothing

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The rally in the Dow Jones Industrial Average today happened for a reason, and the index could continue to escalate, Jim Cramer said on his "Mad Money" TV show Monday.

It's a bad time for banks, brokers and homebuilders, and the pin action is "dreadful," he said. But the government could break this chain and cause the market to go up, he said.

"The government can either be part of the solution or part of the problem," Cramer said. "We'll see which it is tomorrow, when the Federal Reserve meets."

Cramer wants to help "the forgotten man (the mortgagees) before he becomes forgotten," he said. So far, Cramer said, he's heard nothing from the Fed, but Chairman Ben Bernanke should stop worrying about inflation. "The Fed is fixated on the wrong problem," Cramer said.

Meanwhile, the Fed could be helping alleviate mortgage woes and be boosting the economy by easing rates. Also, William Poole, the St. Louis Fed president, who Cramer said frankly is unaware of the credit problems, could resign, Cramer said.

Other possibilities are that Henry Paulson, the U.S. Treasury secretary, could say the Treasury Department will allow refinancing to get rid of the housing glut, or that Congress could pass legislation to better help people directly, he added.