Cramer's 'Mad Money' Recap: Feb. 17

Cramer discusses today's market plunge with the CNBC crew.
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This article originally appeared Feb. 17

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In a special Tuesday edition of his "Mad Money" TV show, Jim Cramer joined fellow CNBC anchor Melissa Lee, the gang from "Fast Money" and a roundtable of experts, to discuss the day's events and market outlook.

Cramer commented on a myriad of topics he feels are weighing in on an ever increasingly difficult market.

Regarding the banking and financial stocks, Cramer said the markets cannot be expected to ever bottom without a bottom in this sector. He said the banking outlook is becoming increasingly dicey, as it is for the insurers, as everyone scrambles to find the true value of these entities. "Why would banks ever make a loan with the underlying asset values still declining?"

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Turning to the oil stocks, Cramer said it's clear from comments made by


(RIG) - Get Report

that while just about all drilling has ceased here in the U.S., drilling is still happening in other places around the world. He said that while $135 a barrel for oil was clearly not the right price, $35 a barrel isn't either. He said he would still be a buyer of the high yielding oil stocks.

Cramer listened to the press conference held by

General Motors

(GM) - Get Report

CEO Rick Wagoner, and talked with CNBC reporter Phil Lebeau, about the on going crisis at the automakers.

Cramer: The Pair Trade

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In his opinion, Cramer said the American people are outraged and getting fed up with the automakers. Cramer said one thing is clear: no matter how the situation plays out, it's the common shareholders that will likely lose out as the bondholders hold all the power.

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When asked about the latest report of what famed investor Warren Buffet is buying and selling, Cramer issued words of caution.

While giving the near-celebrity investor his dues, Cramer said Buffet is betting big that things will work out in the long term. But time is not a luxury most Americans can afford he warned. "America isn't about forever," he said, and that's why most people who bet with Buffet may fall vastly short of his historically high returns.

Cramer also spoke with CNBC's Bob Pisani about the mood of the market. Pisani characterized the trading as "anxious, but not panicked" and noted that gold was perhaps the only market standout. Cramer said with so many things going wrong, he's not surprised at the carnage.

Turning to politics, Cramer asked "where is Obama?" He said the stimulus plan is now done, and the market needs answers to the housing crisis, the banking crisis and unemployment, issues the stimulus does little to nothing to address.

Cramer said the stimulus plan isn't going to put that many people to work, so he's looking to the White House for more answers.

In his final thoughts, Cramer said he's worried the markets may continue to slide below Dow 7,500. He said even the industrials, which for years have been making gains overseas, are now all being obliterated as growth in Brazil, Russia, India and China grind to a halt.

The next support level below Dow 7,500 would be back at the levels set after 9/11 in 2001. Below that, he said, the markets would likely stop at levels set in 1996.

For a company like

United Technologies

(UTX) - Get Report

, which current trades at $45 a share, down from a high of $75 a share, Cramer said that name could see $24 a share, as it did after 9/11, or even $13 a share if it hit 1996 levels.

Cramer said he doesn't think things will get that bad, but noted that what was once inconceivable is now entering into many "what-if?" equations.

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