Cramer's 'Mad Money' Recap: Riding Out the Bottom

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"At the bottom, things can go right," Jim Cramer told viewers of his "Mad Money" TV show Thursday.

To bring that point home, he revisited his "Mortgage Madness Index," an index of financial and homebuilding stocks that he created on Aug. 3. The index has been more than cut in half since then, but Cramer now feels "the bottom is in" for some of the most hated names on the list.

First up, Countrywide Financial (CFC Quote - Cramer on CFC - Stock Picks). Cramer said he likes all the chatter about a possible acquisition of Countrywide by Bank of America (BAC Quote - Cramer on BAC - Stock Picks). He hopes investors picked up some of the preferred shares of Countrywide on his earlier recommendations.

Next up, Washington Mutual (WM Quote - Cramer on WM - Stock Picks). Cramer feels the company could be a takeover target and is now turning positive on WaMu.

As for Citigroup (C Quote - Cramer on C - Stock Picks), Cramer says it will make a lot of money if the Federal Reserve continues to cut rates. Citigroup is a stock that he owns for his Action Alerts PLUS portfolio.

Cramer is also warming up to Bear Stearns (BSC Quote - Cramer on BSC - Stock Picks), but still prefers Merrill Lynch (MER Quote - Cramer on MER - Stock Picks).

In the homebuilding space, Cramer now likes KB Homes (KBH Quote - Cramer on KBH - Stock Picks) and Centex Homes (CTX Quote - Cramer on CTX - Stock Picks), but feels Beazer (BZH Quote - Cramer on BZH - Stock Picks) is "still too troubled."

In the mortgage insurance space, Cramer says he's no longer a seller of MGIC Investment (MTG Quote - Cramer on MTG - Stock Picks) and MBIA (MBI Quote - Cramer on MBI - Stock Picks) but would not necessarily be a buyer at these levels, either.

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