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"What we have today is just some serious profit taking," Jim Cramer told viewers on a special, midday edition of his "Mad Money" TV show Monday.

He described today's market action as simply giving up some gains, nothing major.

Cramer explained that while the market mulls over the repercussions of a government takeover of

Freddie Mac

( FRE) and

Fannie Mae

( FNM), he cares more about the true underpinnings of the market, mainly the price of oil and natural gas.

Cramer discussed that topic with Jim Hackett, CEO of

Anadarko Petroleum

(APC) - Get Anadarko Petroleum Corporation Report

to find out just how big an impact the declining cost of natural gas is having on his company.

Hackett said there will be continued strong demand for natural gas until a viable alternative fuel comes into fruition. He described the decline in his company's stock as normal market volatility and felt it was nothing to be concerned about longer term.

Cramer: Buy the Right Infrastructure Stocks

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Asked about rising raw costs, Hackett confirmed that costs are indeed up 50% since the beginning of the year, but said that his company has minimized those effects by hedging and what he called "smart drilling."

In fact, he noted, the effect to Anadarko's bottom line has been on the order of just 5% to 7%.

TheStreet Recommends

Cramer and Hackett agreed that the price of many oil and natural gas stocks are trading at a big discount to the price of the commodity itself. Cramer reiterated his buy on Anadarko and the sector as a whole.

Outrage of the Day

In this segment, Cramer cautioned viewers not to take their eyes off what's important in the market. While the media may be focused on Iran, the disturbing events in Georgia and the looming tropical storm in the Gulf of Mexico, Cramer said it's the supply and demand of oil that's controls the market.

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In the past, said Cramer, any one of the aforementioned media events would have instantly taken oil to $150 a barrel. Yet today, oil remains at $110 a barrel and is likely to fall even further, he said. This only confirms that supply and demand rules the day and at $4.50 a gallon, the demand for oil and gas just isn't there.

Cramer cautioned investors to scale out of the oil stocks that are directly affected by the decline in oil prices. They include companies such as


(RIG) - Get Transocean Ltd. Report


Rowen Drilling



Chesapeake Energy

(CHK) - Get Chesapeake Energy Corporation Report


XTO Energy

( XTO) and

Ultra Petroleum



He said while it may be tempting to buy into these names ahead of the media events, the market is indicating there is more pain to come.

The Magical Kingdom's Formula

In the "Executive Decision" segment, Cramer talked with Bob Iger, president and CEO of

Walt Disney

(DIS) - Get Walt Disney Company Report

about the effects of a slowing economy on his company's business.

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Iger said that Walt Disney should not be viewed as a media company, since only 20% of the company's revenues come from advertising. He said that Disney has made an intentional decision to continually lower that number as the company diversifies its assets. "We are in the media business, but that's not what we're all about," he said.

Iger said that Disney is in the business of creating and building great, long-term brands that can be leveraged around the globe. Disney, he said, is the No. 1 brand in its space because of the high quality experience it offers.

Iger said company fares well in tough economic times because the company's business is not as cyclical as many analysts believe. He said that Disney offers a great, affordable product and flourishes from its global reach.

Final Thoughts

Cramer told viewers to consider nibbling at some of the beaten-down bank stocks. He suggested looking into


(LOW) - Get Lowe's Companies, Inc. Report



(M) - Get Macy's Inc Report

, both of which recently reported better-than- expected numbers.

Want more Cramer? Check out Jim's rules and commandments for investing by

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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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