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Cramer's 'Mad Money' Recap: Facing a Worst-Case Scenario

Cramer said the Fed's bond-buying initiatives have worked and the housing and auto sectors are already reaping the benefits. But the Fed can't do anything more.

Who does have the power to stimulate the U.S. economy? Cramer said that job lies with the Congress, which could easily provide the markets with certainty and stimulus to kick-start commercial spending. Companies don't like to begin operations or expand in times of uncertainty, yet that's exactly what we're likely to have until November.

Cramer said investors should pay attention to Fed Chairman Ben Bernanke's testimony on Thursday, but realize that ultimately his words won't mean much for the markets anytime soon, as our problems can't be solved by the Fed.

Lightning Round

Here's what Cramer had to say about caller's stocks during the "Lightning Round":

Cisco Systems (CSCO): "I think it's dead money. I don't see anything you want to buy there."

Cummins (CMI): "I think the quarter isn't going to be good enough."

ABB Ltd (ABB): "It's Europe and I will touch nothing in Europe right now."

BHP Billiton (BHP): "It's a Chinese play and China is collapsing. It yields 3.6% and I think 4% is where it bottoms."

Prudential (PRU): "I can't believe how low this stock has fallen. I can't get behind it here."

Netflix (NFLX): "I don't want anything to do with Netflix. I think it's starting to slow."

Fighting Cancer

In the second "Executive Decision" segment, Cramer continued the oncology theme and spoke with Harvey Berger, chairman and CEO of Ariad Pharmaceuticals (ARIA - Get Report), a speculative biotech company also fighting the war on cancer.

Berger briefed viewers on Ponatinib, Ariad's drug to fight otherwise drug-resistant forms of leukemia. He said the data have been compelling and over half of the patients who have seen other drugs fail have seen success, with well-tolerated side effects. The company plans to file for regulatory approval for Ponatinib in the third quarter of this year.

When asked about Ariad's business model, Berger explained the goal is to build a fully integrated oncology company that discovers, develops and commercializes its own drugs without larger partners. He said that while the "go it alone" process is a difficult one, over the long term it will provide more value to shareholders.

To date, Ariad has discovered four cancer treatments and is working on development on all four. In the case of Ponatinib, the company is beginning to explore the drug's effects on other forms of leukemia. Berger noted that current estimates for the company do not yet include the potential for these other indications.

Berger closed by saying the best is yet to come for Ariad and the company is "very close" to realizing its dream of bringing those new drugs to market. Cramer agreed with Berger's outlook and continued to recommend the stock.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer responded to the critics who claim the media is over-reporting the bad news in Europe and that the time to buy is now.

Cramer said that contrarian investing isn't a smart move at this point in the European crisis as so many things are still up in the air. There are still no compromises in Europe, nor any interest rate cuts in China. U.S. markets, such as the S&P 500, are still up for the year. That is not the definition of a bottom, said Cramer.

Cramer said the goal still remains to protect your portfolios, not try to outthink the media coverage.

--Written by Scott Rutt in Washington, D.C.

To contact the writer of this article, click here: Scott Rutt.

To follow the writer on Twitter, go to http://twitter.com/scottrutt.

To submit a news tip, send an email to: tips@thestreet.com.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

At the time of publication, Cramer's Action Alerts PLUS had no positions in the stocks mentioned.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

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