Cramer said Smith & Nephew's recent earnings miss was due to its recent acquisition of a Swiss-based company, which created $100 million of additional sales costs along with $10 million in unforeseen investigation costs. "This news was over done," said Cramer, noting the company posted $3.37 billion in revenue for 2007.

With the worst behind Smith & Nephew, he expects the company to begin seeing the benefits of their mergers going forward. He also likes the company's $1.5 billion stock buyback program.

"Health care is back and bigger than ever," Cramer told viewers.

Breaking the Silence

"I think we are still facing some major financial collapses in the banks and brokers," Cramer told viewers.

Despite small run-ups in those stocks recently, he's worried about the fundamentals of CitiGroup (C Quote), Bank of America (BAC Quote), Washington Mutual (WM Quote) and Wachovia (WB Quote).

And he's worried about the relative silence surrounding Freddie Mac (FRE Quote) and Fannie Mae (FNM Quote) and brokers Lehman Brothers (LEH Quote) and Merrill Lynch (MER Quote).

Even the Federal government is eerily silent, said Cramer. "You could hear a pin drop." He said the Federal Reserve is no longer in control of the banking situation and will be powerless to stop at least one of these institutions from failing. He said the Fed needs a plan and needs to let the markets know that there's a plan.

Cramer faulted both presidential candidates for not addressing this on-going issue.

To show how grave the situation has become, Cramer started a stress index last August to gauge the market strength of mainly home builders and banks. The stress index closed today at just 20, having lost 80% of its value.

Cramer urged the Fed to break the silence and let the markets know there is a plan.

In Defense of Steel

Cramer welcomed Dan Dienst, CEO of Sims Metal Management (SMS Quote) to the show to find out if the mounting pressures on the steel industry are signaling a reversal for the group, or a buying opportunity.

Dienst said that he is not seeing a deterioration of the steel market. "There is still a voracious appetite for metals," he explained. Dienst said his company still has great earnings visibility, and he sees strong demand for steel in the foreseeable future.

According to Dienst, U.S. auto demand is not significant when compared to the global demand for autos and other steel needs.

Cramer told home gamers they should consider beginning a position in Sims or other steel stock.

Mad Mail

In this segment, Cramer told a viewer that he would not put General Motors (GM Quote) CEO Rick Wagner on his Wall of Shame. Wagner was doing a lot of things right and could not have foreseen oil at $150 a barrel, he said.

He told a second viewer that he's a buyer of L-3 Communications (LLL Quote) and is not worried about Obama dismantling the defense budget.

Lightning Round

Cramer was bearish on Time Warner (TWX Quote) and NYSE Group (NYX Quote).

Want more Cramer? Check out Jim's rules and commandments for investing by clicking here.

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