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Cramer welcomed Sen. Kit Bond (R., Missouri) to the show to find out details of the government's bailout plan for the U.S. financial system.

Bond called the current financial system "filled with greed and regulatory loopholes," adding Congress needs to move quickly to protect taxpayers from more fallout.

Bond said Congress also needs to act responsibly. He said there needs to be accountability for those in charge, more transparency of the transactions and greater government oversight of the financial industry.

On the accountability issue, Bond said the issue of executive compensation should be addressed at a later date. However, he said he's determined to see that no executive get a "golden parachute" and that an executive should be held accountable for his firm's actions.

On the issue of whether a government seizure of home loans is good for taxpayers, Bond said that taxpayers shouldn't expect a profit, but with a fair value of around 60 cents on the dollar, taxpayers won't be taking on the full value of the loan, either.

Cramer remained vigilant on the issue of rating home loans based on their vintage, the credit scores of the borrower and the location of the property. Bond agreed that greater transparency and classification of the loans needs to happen.

A Dysfunctional Market

"When the market isn't acting like a market, it's not the time to buy stocks hand over fist," Cramer told viewers while opining on the market's uncertain outlook.

Cramer said he's not sure what the Treasury Department's bailout plan will ultimately look like, but he views it as a capitalist move. He said any move that preserves free, unregulated capitalism is not communist or socialist, and he said he's a backer of any plan that wards off another Great Depression.

Cramer said he's not sure what to make of a market where firms like Goldman Sachs (GS), which he also owns for his Action Alerts PLUS portfolio, and once the benchmark of solid financial firms, and one that did not make any mistakes or get involved in sub-prime mortgages, can teeter on brink of collapse.

However with the likely passage of the bailout plan, Cramer said firms like Goldman have gone from risky stocks to cheap stocks. He recommended what he called solid banks like Wells Fargo (WFC) and US Bancorp (USB).

Cramer also recommended consumer stocks as a defensive play in uncertain times. And he said that real estate, the asset that caused all of the problems, is starting to look better and better. Given how the market is acting however, Cramer advised waiting for the next big pullback before buying in.

Lightning Round

Cramer was bullish on Fluor (FLR), McDermott International (MDR) and Joy Global (JOYG).

He was bearish on Arch Capital Group , SPX Corp (SPW), Babcock & Brown Air Limited and Flextronics .

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