Cramer's 'Mad Money' Recap: July 16

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" Is this just another rally in a bear market or has something changed," Jim Cramer asked viewers of his "Mad Money" TV show Thursday.

He said that while some things did indeed change, not enough changed to offer a sustained market rally.

According to Cramer, there were three causes for the Dow to soar 276 points. The first was Wells Fargo(WFC Quote), which not only reported a better-than-expected results, but also raised its dividend. Cramer said this showed investors that not all banks are in trouble. "Wells Fargo is a survivor bank that can go buy up the bad banks," he said.

The second cause was oil prices, which don't seem to be able to break the $150 a barrel level. "This means consumers won't see gas over $5 a gallon," he said.

Finally, Cramer credited Intel (INTC Quote) for part of the market's rally with its surprisingly good quarterly results.

Despite these positive notes, Cramer said the country needs his three-part plan to get the American Dream back on track. For a permanent bull market, he said the country doesn't need a recession, a strong dollar or lower taxes.

Instead, he said, it needs the creation of a resolution mortgage trust to bail out the financial sector. With just a $300 billion bond issue of two-year notes, the federal government could buy all of the bad loans for around 70 cents on the dollar.

The next step would be to scrap ethanol. Cramer advocated repealing the Illinois/Iowa Corn Ethanol Mandate, which currently converts 30% of the nation's corn crop into just 3% of its energy needs. If this were done, there would be a 50% reduction in food costs, he said.

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