HON), Caterpillar ( CAT), Parker Hannifin ( PH) and others as signs of the market's health. Cramer also noted that the KBW Bank Index and the PHLX Housing Sector Index are rallying because of the rate cuts. In spite of the positive news, Cramer said he believes more action is needed. Given "the losses that we saw for the quarterlies from a Bank of America ( BAC) or a Wachovia ( WB) ... I genuinely feel that we are too close to the precipice to stop. "That doesn't mean that a Honeywell isn't doing fine without it," Cramer cautioned. "It's like 1998, when the economy was booming. ... We had to stop the decline
in the financials ." Cramer believes the bank woes may remain independent of the broader economy. "The problems are not with IBM ( IBM) or Verizon ( VZ) ... AT&T ( T) ... Nokia ( NOK) ... Microsoft ( MSFT)." Cramer added that the Federal Reserve's 75-basis-point rate cut last week was helpful. "You needed that cut to be able to raise all that money last week." However, the crisis isn't over. "Home price appreciation is nonexistent. ... We saw that number today. ... The oil futures are saying no recession. I think the Fed cuts are needed again."