Cramer's 'Mad Money Recap': Putting Housing Ahead of Inflation

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The Federal Reserve is making a mistake by focusing on inflation instead of dealing with the housing crisis, Jim Cramer told viewers on his Mad Money show on Tuesday.

Cramer said Fed chairman Ben Bernanke adopted the same approach last year during the crisis in the housing industry and financial services sector that resulted in almost $500 billion in losses.

He said Bernanke apparently is in the same mode again, judging from recent comments he made when he said the risks to the economy had diminished in the last few months.

Cramer said he would tackle the country's energy-based inflation problems by scrapping the ethanol mandate, which has raised fuel prices and done very little to increase gas supplies.

Cramer said raising interest rates now would do severe damage to banks and cause the country to move into a recession.

Tackle the problems sequentially, he argued: housing first, then inflation. Cramer expressed fears that Fed's current inflation-first approach will devastate the economy and cause millions of people to lose their homes and millions more to lose their jobs.

Cramer: Ag Plays Are Twice Blessed

A New-Tech Wildcatter

Cramer continued his series on wildcatters by turning his attention to Rex Energy(REXX Quote).

He said Rex has been making all the right moves in its exploration for oil and natural gas.

But what most impresses Cramer is how it is applying new technology to drill for hard-to-reach oil. The company accomplishes this by pumping chemicals into the ground to bring out oil.