Cramer's 'Mad Money' Recap: Cramer vs. Kass (Final)

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NEW YORK (TheStreet) -- Are we done going higher?

That was the question Jim Cramer asked viewers of his "Mad Money" TV show Wednesday, as he responded to colleague Doug Kass' call that the market has peaked. Cramer said there's no reason to panic or to "sell, sell, sell," but there's always room for differing opinions.

According to Kass, the market's done going higher. He cites earnings, which were met only with cost cuts and job reductions, as one major concern. Kass said that the market could be headed for another sizable collapse with the muted recovery in housing, increased consumer borrowing and a ballooning federal deficit.

Cramer said when investors come across a viewpoint that differs from their own, they shouldn't dismiss it, but instead embrace it and study it. He said from his vantage point, things are improving. He said there isn't much inflation, the major job cuts are over, and Ben Bernanke will continue to lead the financial system back from the dead.

According to Cramer, the markets will not see Dow 10,300 anytime soon, but will likely pull back 3% to 5%, before resuming an upward trajectory.

He reminded viewers that September is historically unkind to the markets, so if they have big profits, they need to ring the register and raise cash to buy back in at lower levels. Cramer said investors need to prepare for a "business as usual," garden-variety market correction.

On a final note, Cramer told viewers that there was one area of concern for the markets, and that's job creation. He called job creation the markets' Achilles heel. Without job creation, he said, the markets cannot go higher from these level.