This article was originally published Feb. 24

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"We can get out of this mess," a passionate Jim Cramer shouted at the viewers of his "Mad Money" TV show Tuesday.

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He said it can happen "with a hopeful, optimistic message that Obama better start talking about tonight!" For starters, he outlined his own two-point plan to fix the economy and deal with the financial crisis.

First, Cramer said the government needs to take control of the banking system, not the banks. He said the notion of nationalizing the banks is not capitalism, but communism. He called any plan to nationalize half baked and poorly thought out, and said it would surely cause another Great Depression.

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Instead, he offered his notion of forbearance, in which the banks would issue preferred shares to the FDIC in return for notes backed by the full faith and credit of the U.S. government. With these notes on the books, he said, the banks will have all of the capital and assurance they need to start lending again.

The second point in Cramer's plan calls for keeping homeowners in their homes. He said in order for the government to stabilize house price depreciation and stem foreclosures, it should issue 40-year, 4% mortgages, not just to the deadbeats who don't pay their mortgages, but rather to everyone.

Cramer said it's not enough to just reduce the interest on mortgages. He said the principal must be adjusted, too. To help the banks recover their losses, he proposed issuing certificates of equity with these mortgages that would allow the banks to recapture any lost principal when the house is sold.

Cramer said if Obama sticks to this plan, he'll quickly restore order in the markets and keep today's rally alive, and in the process, avoid bankrupting the Treasury.

Mixed Review

In his "Off The Charts" segment, Cramer turned his sights to the charts of the markets to determine whether it's time to buy into this volatile market.

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According to Cramer, all of the technical analysis points to a rally that could last into next month. He said the charts all indicate that the markets are oversold and poised for a sharp snap upward. When looking at an overbought/oversold oscillator, he said the trend is very clear, anytime things have gotten this oversold, the rally is sure to follow.

But Cramer said there's also other evidence of a coming rally. He said other charts indicate few newer lows were set on this decline versus that of October and November. Likewise, charts of put/call ratios also support the rally theory. "There's too much negativity," he said.

Turning to the fundamentals, however, Cramer said he's far less optimistic that a snap-back rally will have any legs.

He told viewers they should use any strength in the markets to scale out of stocks, stockpiling money to buy them back as things sink back lower. Cramer said the earnings estimates are still too high for most stocks, and that makes them too risky.

Ready for the Challenge

"Not every company is tainted," said Cramer. He said there are a few companies that were actually ready for the downturn, stocks with high yields and managements that are up for the challenge.

Cramer said


(HON) - Get Report

is one of those companies, and he welcomed CEO Dave Cody to the show to highlight his company's products.

Cody showcased a number of the company's products, saying that "this is not your father's Honeywell." The products included bulletproof vests, energy efficient turbochargers for autos, a 14-pound military reconnaissance helicopter, fire protection equipment and even a jet engine for business-class jet aircraft.

When asked specifically about the company's aerospace exposure, Cody said the company expects to sell less engines, but said it will make up that lost revenue in other areas. He said the company has a long history of inventing new markets and dominating others through acquisitions.

When asked about Honeywell's exposure to the auto sector and weakness in China, Cody said that while autos are down, there's more room to grow because company's penetration is still so small. He also said that while there's still life in China, it's not as big as many had hoped.

Cramer said he's still a fan of Honeywell and recommended the stock.

Mad Mail

In this segment, a viewer asked Cramer whether

Bank Of Montreal

(BMO) - Get Report


Royal Bank Of Canada

(RY) - Get Report

would be good investments given their high yields.

Cramer told the viewer to simply forget he ever asked the question. He instead recommended


(V) - Get Report



(MA) - Get Report


Goldman Sachs

(GS) - Get Report

, which he also owns for his

Action Alerts PLUS portfolio.

Lightning Round

Cramer was bullish on


(MMS) - Get Report



(T) - Get Report


Johnson & Johnson

(JNJ) - Get Report


He was bearish on

Silver Wheaton



First Midwest Bancorp

(FMBI) - Get Report


Jacobs Engineering

(JEC) - Get Report


Check out the latest edition of

"Cramer's Take onTop-Searched Stocks" on Stockpickr.

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clicking here


Read more of Cramer's Mad Money Lightning Round insights


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At the time of publication, Cramer was long Johnson & Johnson, Goldman Sachs.

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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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 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, 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.