Cramer's 'Mad Money' Recap: Nov. 5

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Jim Cramer outlined a plan for President-elect Barack Obama to fix the struggling economy on his "Mad Money" TV show Wednesday.

Cramer said the first steps to turn the economy around are unfortunately beyond our control. The European and Asian central banks must cut interest rates, he said, ahead of what is sure to be a awful unemployment number on Friday. Without it, the markets will undoubtedly be in for another significant slide.

As for what Barrack Obama can control, Cramer said the first step is to fix the ailing auto industry. He said a major federal bailout, similar to that of AIG (AIG Quote), will be needed.

The government should buy huge chunks of both common and preferred shares in General Motors (GM Quote), Ford (F Quote) and Chrysler (C Quote) to stabilize their stock prices and secure the companies' corporate debt until structural changes can be made.

Second, Obama needs to solve the country's energy independence problem. Cramer recommended relying on the U.S.'s huge reserves of natural gas to bridge the gap to renewable energy.

Obama, he said, should mandate the U.S. automakers to make natural gas vehicles and encourage the oil industry to use tax credits to open natural gas fueling stations. Natural gas, he said, is not only a quick solution but one that could create thousands of jobs.

Finally, Cramer said the country must fix the housing crisis. Cramer says the remaining $400 billion in the TARP program should be used to buy 1.3 million homes in the hardest hit areas of the country.

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