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The

Federal Reserve

finally got it right today when it cut interest rates by 50 basis points, Jim Cramer said on his "Mad Money" TV show Tuesday.

Although he has been hard on the Fed, said Cramer, it's time for him to admit that the Fed is no longer acting crazy. It was acting as if inflation were the biggest worry, but now the Fed has recognized the economy's liquidity problems, he said. "I believe the crisis will soon be over."

The Fed has recognized that the fundamentals of the American economy are not sound and that home and job issues are more important than inflation right now, Cramer said.

However, over the next couple of weeks, the bears are going to go to the media and say the rate cut doesn't matter, he said. Market players should pay no attention to these people. "They are totally wrong," Cramer said.

He believes this 50-basis-point cut is the first of several cuts. "I see three more rate cuts," Cramer said. Therefore, he doesn't want investors to sell when they hear that the rate cut doesn't matter. Maybe the housing industry won't turn on this cut, but it should in three more cuts, he said.

The bears are going to go on TV and say that the Fed doesn't know what it's doing and that the cut is bad for inflation, but that's "baloney," Cramer said. They need the market lower, but the "sellers' strike" won't let them get what they need, he said. The bears are now in a jam and likely won't have any stock to buy back to cover their shorts. "The shorts will be squeezed."

In terms of stocks, "almost everything works now," he said.

Wachovia

(WB) - Get Report

has been rescued and should now go higher, and "

Google

(GOOG) - Get Report

is going to break out," Cramer said.

In addition,

Foster Wheeler

(FWLT)

,

Deere

(DE) - Get Report

and

Caterpillar

(CAT) - Get Report

, the latter of which Cramer owns for his charitable trust,

Action Alerts PLUS, should work now, too, he said.

In oil,

Exxon Mobil

(XOM) - Get Report

or

ConocoPhillips

(COP) - Get Report

should both work, Cramer added.

Bullish Icahn

Playing a game of follow the leader can be "incredibly lucrative" at times, Cramer told viewers. And one of his favorite activist investors is "proven winner" Carl Icahn.

Lately, Cramer said, Icahn's been "extremely bullish" on one big software company:

BEA Systems

(BEAS)

. In addition to the fact that he's increasing his stake in it, Icahn wants management to try to sell the company, as it's becoming increasingly difficult for BEAS to prosper as a stand-alone company.

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It would attract a meaningful premium for investors if it were sold, Cramer said. Icahn believes that if it doesn't want to fall apart, BEAS should sell itself. Since Icahn is an activist investor in the company, said Cramer, he will likely try to push the company into doing what he feels is right.

Icahn has roughly an 8.5% stake in BEAS, and a substantial portion of his stake is in options. While common stock gives a shareholder voting ability, options don't, Cramer explained. In addition, shareholders have not jumped ship and sold their stock since Icahn has joined, he said. This tells Cramer that shareholders seem to be backing Icahn's idea. He believes Icahn has enough sway to convince management to sell the company.

Cramer said that BEAS -- with its good fundamentals, its potential as a takeover target, and Icahn as a stakeholder -- is a company with limited downside. "This company is right, right now," he said.

Genesis Lease CEO

Cramer welcomed

Genesis Lease

(GLS)

CEO John McMahon to the show and asked him why his company is not doing well, despite the fact that it has an 8.2% yield.

The fundamentals of GLS have not changed, and the yield is incredible, McMahon said. He believes it's down because of mispricing of the stock, he said.

When Cramer asked why aircraft companies prefer to lease rather than buy, McMahon responded by asking, "Why own when you can lease? Why tie up capital?"

Right now, one out of every three companies is operating aircraft on lease, and this number should grow, the chief executive said.

Further, McMahon pointed out that only 16% of GLS' portfolio is in the U.S., and 18% is in North America. That means, he said, that more than 80% of its aircraft is distributed globally.

Cramer told viewers that they're not going to be able to find 8%-yielding companies soon, with the market headed higher. He recommended people consider buying GLS.

All in for Allscripts

Recently there was a mandate for medical prescriptions in the Iraq spending bill, which if passed, would make it mandatory for doctors to write nonelectronic prescriptions on tamper resistant paper, Cramer said. Congress is trying to make the medical industry more electronic in hope of reducing medical expenses and saving money on overbilling.

If the bill becomes a law, there are two stocks that should profit immensely:

Allscripts Healthcare Solutions

(MDRX) - Get Report

and

Quality Systems

(QSII)

, he said.

While at first glance Quaility Systems looks cheaper, Cramer believes that Allscripts deserves the premium, because its long-term growth rate is better and because it's a company that is willing to give shareholders more information. In addition, Allscripts recently won a large electronic-health record contract with Columbia University Medical Center, he said.

According to Cramer, Allscripts is the first choice, and Quality Systems is the second.

Lightning Round

Cramer was bullish on

Procter & Gamble

(PG) - Get Report

,

Dominion Resources

(D) - Get Report

,

Consolidated Edison

(ED) - Get Report

,

Omniture

(OMTR)

,

Boeing

(BA) - Get Report

,

Cisco Systems

(CSCO) - Get Report

,

Intuitive Surgical

(ISRG) - Get Report

,

Deere

(DE) - Get Report

,

Monsanto

(MON)

,

Bunge

(BG) - Get Report

,

Intel

(INTC) - Get Report

,

Hewlett-Packard

(HPQ) - Get Report

,

Chevron

(CVX) - Get Report

,

ConocoPhillips

(COP) - Get Report

and

Exxon Mobil

(XOM) - Get Report

.

Cramer was bearish on

Ceragon Networks

(CRNT) - Get Report

,

Archer-Daniels-Midland

(ADM) - Get Report

and

Seagate Technology

(STX) - Get Report

.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here

.

For more of Cramer's insights during the Lightning Round, click here

.

At the time of publication, Cramer was long ConocoPhillips, Caterpillar and Hewlett-Packard.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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