TheStreet.com TV Recap: Hey Fed, Cut a Half Point

"It would be very difficult to try to figure out what's a nonperformer and what's a performer, but you need both," Cramer said. "You need lower rates and you need foreclosure forgiveness."

He said he wants a half-point cut because he doesn't want to pay for a bailout. "The longer the Fed dithers, the more likely the bailout will be gigantic," Cramer said.

Right now, people are wondering if the Treasury is bailing out foreclosure companies, he said. They are not bailing them out yet, but they will have to without a half-point cut.

Unless the companies that are putting money in get a reward from the Fed, "it's very difficult to think why you would want to be an outsider coming into our market," Cramer said.