Cramer's 'Mad Money' Recap: The Bailout Plan's Biggest Winners

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Jim Cramer dug through the details of Treasury Secretary Henry Paulson's bailout plan to tell the viewers of his "Mad Money" TV show who the biggest winners will be. Suprisingly, the plan's biggest winner surprisingly will be the American taxpayers, he said.

While Cramer still told investors to use caution, sell into strength, and cut back at least 20% of their portfolios, he sees some obvious winners once the Paulson plan is signed into law.

He said that Bank of America (BAC Quote) stands to benefit.

That's because Bank of America has already written down the value of the loans it acquired through its merger with Countrywide, and is currently in the process of doing the same with the assets it received from Merrill Lynch (MER Quote).

Cramer said once the government begins buying mortgages at values higher than Bank of America's current book values, the bank can instantly revalue these assets and see some upside.

Cramer said that Wachovia (WB Quote) will also benefit from the bailout. With CEO Bob Steel's previous government experience, Cramer said that he will be able to take advantage of the plan by splitting Wachovia into good and bad components and sell off the bad parts quickly to the government.

Cramer said that Goldman Sachs (GS Quote), a stock which he owns for his charitable trust Action Alerts PLUS, will also benefit from the Paulson plan.

He said that Goldman has the currency and capital to become a big international bank. He speculated that Goldman might consider buying Wachovia, which is now valued at just half Goldman's marketcap.

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