What was Cosmo Kramer truly thinking when he said?

There is so many funny Seinfeld episodes that make you think what on god’s green earth Cosmo Kramer was thinking.  I have my opinions but I would like to know what other people think that Kramer is thinking when he does all the crazy things he does. 

The one episode that makes me truly think what Kramer was thinking is the Merv Griffin set when he brings the set into his apartment that he found in the dumpster and he then thinks that he is the host of the show.  Some of the Kramer quotes he says in the episode make you laugh but it’s just because they are so ridiculous like when he just in the middle of the conversation he is having goes and lets have a break and takes one chips and has a sip of a can of pop then goes onto say were back after he swallows as though people are watching him.  Also in the episode Cosmo Kramer tells jerry that what he does in his own time is none of his business but when he’s on his show he better clean his act up.  The fact that they are just in his apartment makes no sense to me and I would like to know what he is thinking.  There are many other Seinfeld episodes where I wonder what Cosmo Kramer was thinking but this is the one that seemed just so ridiculous.

http://www-cs-students.stanford.edu/~yonglee/gifs/seinfeld/thekramer.jpg

What do you think he is thinking during The Merv Griffin set episode.  I would like to see what other people think he is thinking about so I can see other perspectives.