Cramer's 'Mad Money' Recap: How to Win Back Investors (Final)

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NEW YORK (TheStreet) -- "We can't have healthy markets without the little guy," Jim Cramer announced to the viewers of his "Mad Money" TV show Monday, as he responded to a New York Times article that noted how investors have taken $33 billion out of the stock market this year and put it into bonds and fixed income.

"People are avoiding stocks like the plague," said Cramer, even though staying diversified and investing in the right stocks is still the best way to make money. CD's and bonds, he said, may seem like safe investment, but investors will never make any significant money with them.

Stocks are the only way to go, said Cramer, as he outlined what he would do to bring the individual investor back to the markets.

No. 1. Shut down the machines. Cramer said the reasons for the "flash crash" crash are still not known, and until we do fine out, the machines must be turned off.

No.2. Lower taxes on stocks. Cramer said taxes have to stay low on capital gains and dividends, especially for the working class, who needs this income for retirement.

3. Make 401k's self-directed. Cramer said individuals should be allowed to manage their own investments and not have to rely on crummy mutual fund managers.

No. 4. Bolster the Securities and Exchange Commision. Cramer said the SEC needs to make sure our money if safe. "Let me hire 50,000 new investigators," he said, the white collar crime is out there.

No. 5. Exchanges need more power. Cramer said the stock exchanges need the authority to stop trading the machines any time they go awry to preserve the market integrity.

No. 6. Show people the game's not rigged. Cramer said to use opportunities like the upcoming General Motors IPO to get individuals in the game. "Give the IPO to the people," he pleaded, after all it was us who bailed them out in the first place.

The stock market has been the best way America's ever known to make some money, said Cramer. It's time we clean it up and return it to the people.