Fed bubble has burst, but don’t worry!

With a snap of a Fed finger, companies are ready to tighten up. Don't worry, Jim Cramer has his fans covered.

The Federal Reserve ended its quantitative easing program on Wednesday, and in return people sold their stocks.

Yes, there are always some jitters about what the Federal Reserve will do. But we all knew this would happen eventually, and the market quick reaction should not be a surprise. But then again, that is the problem.

"There's always some knucklehead who didn't expect the most widely telegraphed Fed action in recent memory to actually happen, and that's the source of today's lunacy," Cramer said.

Finger busting soap bubble
Jason Way Photography | Getty Images

The market is just not as dangerous out there as it seems, the "Mad Money" host said.

The underlying theory is that the Fed's bond buying program was designed to boost employment and business growth. As if these elements were all in a bubble, now that things have improved, the Fed will sit there with a little ice pick and prick away at the bubble.

Don't worry.

Stocks that Cramer picks are not going to be affected as much by the Fed bubble bursting. He often picks stocks that have taken into account the Federal Reserve, and thus won't have their profits impacted.

Though Cramer thinks this bubble concept is a dramatic over-simplification, the reality is that there really are some bubbles out there. For example, he thinks investors are not making enough money for the risks of owning various high-yield bonds.

Specifically, bonds that based in oil issued by companies which rely on higher oil prices to make the numbers are worrisome.

Jim Cramer on set of Mad Money

The bubble isn't prevalent in every asset class, though.

"Bubbles in equities? Please. The air keeps being taken out of whatever's hot in such rapid fashion that the bubbles are more like helium balloons that aren't tied well than actual pockets of overvaluation that could be at risk at the drop of a Fed hat," said Cramer.

He thinks stocks such as Clorox, Celgene, Hewlett-Packard, Western Digital and Microsoft all will keep their bottom line intact.

So while there was a slight ripple on the economy due to the Federal Reserve, and many companies are ready for a tightening to happen, Cramer thinks that it is more likely that the Fed effect will be more benign than many anticipate. Until then, put the bubblemania out of your mind.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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