Cramer: Buy Now On the Cheap

The decline in both commodities and stocks had nothing to do with the fundamentals, Cramer said Thursday.

"I think the market is being driven down by speculators ... hedge funds and individuals, who are being margined out of everything because the commodities they bought, including the commodities that are now stocks, are declining rapidly and their brokers are on the phones with them, demanding they put up more money if they want to hang on to their positions," Cramer explained. "These speculators are selling because they don't have that collateral."

Speculators first used borrowed money to buy silver and then oil . Having most recently gotten into stocks, those trading on margin are now getting killed, Cramer said. But home gamers are now getting an opportunity to buy stocks at prices far below where they deserve to be. The correction is here to stay until the margined players are wiped out and that could take a while, Cramer said.

It is a blessing that the speculators are getting crushed, Cramer said. While the silver trade doesn't affect the health of the economic, he said the price of oil does. Oil was on the brink of derailing the economic recovery until it collapsed Thursday, Cramer said. After all, higher oil prices translates into higher gas prices, which Cramer said acts as a tax on the consumer.

As the price of oil continues to fall now that the margined players are getting hit, Cramer thinks companies can thrive. Retail, travel, leisure, as well as industrial activity is bound to bounce back, he said. With an increase in economic activity and lower oil, industrials should see get a bump, too. He remains bullish on Caterpillar .

When this story was published, Cramer's charitable trust owned Caterpillar.

Call Cramer: 1-800-743-CNBC

Questions for Cramer?

Questions, comments, suggestions for the Mad Money website?