Cramer's 'Mad Money' Recap: Feb. 18

This article was originally published Feb. 18

Click here for an archive of Jim Cramer's Mad Money recaps.

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Jim Cramer used today's meandering markets to catch his breath and separate fact from fiction.

He used his "Mad Money" TV show on Tuesday to cut through the confusion of what he called the top 10 market myths.

Myth No. 1: Stocks are cheap. Cramer said stocks might "appear" cheap on a price basis, but on a price-earnings basis, they're anything but inexpensive.

Myth No. 2: The automakers only need an additional $14 billion to survive. Cramer said any notion that the U.S. automakers can get costs under control without breaking the unions is just plain false.

Myth No. 3: The banks are hoarding money. "Of course they are," said Cramer. He said they would be hard put to make loans while the collateral is losing value.

Myth No. 4: There's nothing we can do about the mortgage problem. He said this is false. Using the playbook from the 1980's, he said banks can adjust the principal due on their bad loans.

Myth No. 5: Nationalizing banks will work. What works in Sweden will not work here in the U.S., he said, but forbearance, a notion he's advocated for weeks, will.

Myth No. 6: The mortgage insurers are viable. Cramer said no one but the mortgage insurers can possibly believe this myth.

Myth No. 7: Warren Buffet is doing great. Cramer said while Buffet owns a lot of stocks, he's playing for the long term, while regular investors may get hurt following his lead.

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