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Cramer's 'Mad Money' Recap: Playing Defense Against Obama's Banking Overhaul (Final)

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NEW YORK ( TheStreet) -- "The markets would have been up huge on earnings today," Jim Cramer told the viewers of his "Mad Money" TV show Thursday, "if it weren't for President Obama once again taking aim at the banking system."

Just like in the past, Cramer said the markets have sent Washington a message that increased regulation is not welcome on Wall Street.

Cramer said Obama's proposed regulations do nothing but hurt any company that needs credit. The big investment banks were not responsible for the crisis, he concluded, it was the mortgage brokers and the insurers like AIG (AIG).

But with Obama's relentless assault on the big banks, Cramer said investors will need to play defense, investing in safe companies outside of the president's radar. He said stocks like General Mills (GIS), Procter & Gamble (PG) and Bristol-Myers Squibb (BMY), the latter two stocks which he owns for his charitable trust, Action Alerts PLUS .

Cramer said other defensive names work as well, companies like Coca-Cola (KO) and rival Pepsico (PEP), another Action Alerts Plus name. He also said investors need to look towards foreign stocks for safety, as well as towards long-term themes like the mobile Internet tsunami.

"Let's not take any chances," said Cramer, "we need to steer clear of the banks for awhile."

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