TheStreet.com TV Recap: Viewing Stocks Through a Fed Prism

One of the things that Jim Cramer has spent a lot of time thinking about is not necessarily the fundamentals of companies -- although he certainly wants to know them -- but how they will be interpreted in the stock market, he said on TheStreet.com TV's Wall Street Confidential Web video Wednesday.

A lot of people, particularly in the conventional media, are trying to pin him down on whether he'll be right in the next 48 hours or the next two weeks, Cramer said. "One of the things that I've tried to do is impart lessons from the mistakes that I've made, with the idea that the next people won't" make the same ones.

Cramer said that in 1998 he found that the fundamentals before and after the Fed's emergency meeting remained unchanged. However, stocks went up dramatically "because the same pieces of data that were being reported before the Fed action were subsequently viewed quite differently after the Fed action.

"What I'm urging people to do is understand the psychology [of the market] and not to fight it," he said.

Although people are coming in from the sidelines, every day there are new subprime problems, Cramer said. "I'm ceding the notion that things aren't better," he said.