TheStreet.com TV Recap: Europeans Time Dollar Bottom

All the foreign-led merger and acquisition deals that are currently taking place in the U.S. are signs that the Europeans believe the dollar has bottomed, Jim Cramer said on TheStreet.com TV's Wall St. Confidential Web video Wednesday.

"The Europeans have historically taken their cue from the currency more than the company," he said. "They will have companies they want to buy, but they will not buy them until they think the currency has bottomed. They are much more currency sensitive over there than we are."

Cramer believes this is just the beginning of the wave.

Cramer: Foreign-Led Mergers Are the New Wave of Deals

Amid the endless negativity he said he is seeing everywhere, he wants people to remember that no one predicted the private-equity wave or the tremendous decline in interest rates during 2001 to 2003, but both things happened.

Similarly, "no one predicted in 1987 to 1989, the gigantic wave of Japanese buying," Cramer continued. "No one predicted, in a similar period from 1985 to 1988, a giant bubble of German, French and English buying of our companies.

"I see a major, major M&A wave coming," he said. "It's very positive and it's going to be the theme for 2008.

"It's obviously very hard to dislodge subprime as the theme, but what I urge people to do is realize that if the Federal Reserve were to cut the discount rate dramatically to make it so that the banks would refinance and would make it so that the banks would have big profits on the net interest margin, then you would have obviated the subprime story," Cramer said. "And then what would float to the top is this European M&A."