Cramer's 'Mad Money' Recap: Sept. 15

Steel said about six to eight years ago people began to get more comfortable with risk, including with their homes and certain savings strategies. Skip ahead to last summer, Steel said, when people were essentially using their homes as ATMs, which set the system up for a real downfall.

Steel said that the major Wall Street firms succumbed because of a nasty combination of the credit crunch, liquidity problems, and their subsequent effect on the real economy.

Cramer asked Steel if there was anything that can be done: "Is catastrophe on the table?"

Steel said, "We're working through this, and we're making progress." But he stressed that going forward will take greater transparency, which will generate confidence in the assets that are being bought and sold. Also, the system needs enough capital, he said.

To that end, Steel said he thought the Fed was doing a "good job" of trying to provide liquidity and working with banks to provide capital.

Steel said considering all the recent headwinds, most people would've likely underestimated first- and second-quarter GDP growth.

Cramer then asked Steel about the specific problems facing Wachovia. Steel emphasized that the company is working to understand the issues and working on its balance sheet.

Steel said what skeptics are missing is that the company owns home loans, not securities. "We can work with people and find solutions."

Cramer asked how Wachovia can raise more capital. Steel said the company is doing it themselves, cutting the balance sheet, cutting the dividend, and cutting other costs. "We feel we can work through this."