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Cramer's 'Mad Money' Recap: Aug. 11

Despite many bearish signs, the market is rallying in unexpected places, Cramer says.
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"There are three stories controlling the markets right now," Jim Cramer told viewers on a special midday edition of his "Mad Money" TV show.

He said falling oil prices, the rally in retail stocks and the continued rally in banking and financial stocks are behind the market rally.

Cramer reminded viewers that he called the bottom in the financial stocks on July 15. Since that call, many of the banking stocks are up, and up big.

He cited stocks such as



, which was trading at $1.70 a share on July 15 but is now $4.19 a share.

He also mentioned


(MBI) - Get MBIA Inc. Report

, up from $3.90 a share to $8.70 a share,


(WB) - Get Weibo Corp. Report

, up from $8.90 to $18.60 a share and

Bank of America

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(BAC) - Get Bank of America Corp Report

from $18 a share to $33 a share.

Even the troubled

Fannie Mae


is up from a low of $6.90 a share to $8.30 a share today, noted Cramer. He said that despite continued losses at all of these companies, he doesn't feel the lows of July 15 will be tested again.

Cramer: Why Georgia's Not on Oil Market's Mind

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Cramer still expects hardships in both the financial and home building sectors and advised using caution in investing in them. He doesn't foresee a bottom in the housing market until late 2009, and he still expects to see at least one or two of the major home builders to fail in the coming months.

Sirius Static

Cramer welcomed

Sirius Satellite Radio

(SIRI) - Get Sirius XM Holdings, Inc. Report

CEO Mel Karmazin to the show to discuss his company's future in the wake of the Federal Communications Commission's recent approval of its merger with rival

XM Satellite Radio



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The upbeat Karmazin said the merger was well worth waiting for and he's looking forward to making his company's stock reflect the true value of the combined companies.

He defended his decision to raise $1.25 billion, seemingly at the last minute, to close the deal by saying that he had to play the hand he was dealt. He said his only concern was getting the deal done before additional challenges could be raised.

Looking forward, Karmazin said that any notions of Sirius defaulting on its debt is ridiculous. The combined company has $2.4 billion in revenues and offers consumers the best deal in radio today, he said.

In the future, customers wanting to keep subscribing to both services would pay $25.90 a month. By early the fall, the company will offer a "best of both" package for $16.99 (that is all of Sirius and the best of XM, or vice versa).

Outrage of the Day

In his "Outrage of the day" segment, Cramer recounted the Dec. 15 analyst meeting of


(AIG) - Get American International Group, Inc. Report

, where the company said it had no exposure to sub-prime debt and would not have to dilute its shares to cover losses. The company also estimated its total losses at just $314 million.

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Cramer called these statements shameful, stating that executives had to have known the losses would be significantly more.

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At the time of publication, Cramer was not long on any stock.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 is related to the specific opinions expressed by him on "Mad Money."

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