Cramer's 'Mad Money' Recap: Giuliani Talks Economy

A decrease in government spending would restore confidence in the dollar, Giuliani explained. He also said higher taxes will not attract more investment money to the U.S. He said the U.S. has the highest corporate tax rate and it's not needed: "There's a strategy to tax reduction, it's called stimulating the economy."

The president has to impose spending caps on civilian agencies, Giuliani continued. "We have to get our spending under control."

The president's job is not only to be hands-on, but also to build coalitions, Giuliani said. When he was a U.S. Attorney, Giuliani said he was hands-on, but as mayor of New York he wasn't as much, except when dealing with the budget because "that's where priorities are reflected."

He said he succeeded in both posts because he had "really good people."

On the topic of being pro-growth and the gap between the rich and poor, Giuliani said he doesn't believe people should put a lid on growth to decrease the gap. Instead, they should increase education and job opportunities, he said.

Cash is Not King

Now that the market's been up a few days, Cramer told viewers it's time to change their strategy. There are always winners and losers when rates come down and "the most bearish position now is cash," he said. "Cash is no longer king."