Cramer's 'Mad Money' Recap for July 28

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" There is no relief in sight," Jim Cramer told viewers on his "Mad Money" TV show after Monday's 239-point drop in the Dow Jones Industrial Average.

He once again blamed financial stocks for weighing down the markets.

But Cramer noted some positive things that occurred in the market, mainly the Federal Communication Commission's approval of the merger between Sirius Satellite (SIRI Quote) and XM Satellite (XMSR Quote), which took an unprecedented 18 months to accomplish. He then pondered why the stocks of both companies were down on the news.

On the surface, the combined Sirius/XM should have lower subscriber acquisition costs and lower content costs, and the merger should also take bankruptcy off the table. But Cramer warned that it will still be difficult for the company to make money with three-quarters of its new subscribers coming from the now declining auto market.

Cramer called the stock of Sirius nothing more a $2 lottery ticket, saying that the delay in approval of the merger has cost both companies dearly.

Sirius lost $327 million in 2007, while XM lost an additional $341, taking the combined debt of the companies to $3 billion. With this much debt, Cramer said it's the bond holders, not the stock holders, who are in control.

Cramer said that as long as the company is not turning a profit, the common stock of the combined entity will continue to struggle. He strongly warned against the common stock and instead recommended going after the $550 million worth of senior sub-ordinate notes being offered by XM.

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