Cramer's 'Mad Money' Recap: Making Money in the Markets (Final)

Cramer says investors shouldn't let bearish news distract them from turning a profit in the markets. <A HREF="http://www.thestreet.com/headlines-and-perspectives/jim-cramer/index.html?cm_ven_int=320X240TSCAD"target="blank">Click for news from Jim Cramer.</A>
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"Use today's big decline to get into the market cheaper," was Jim Cramer's takeaway on his "Mad Money" TV show Wednesday.

He took aim at the bears and the naysayers for keeping investors out of what's proving to be a great bull market.

Cramer said every morning he's confronted with negative news on the markets, reasons why we're supposedly poised for big declines. Yet despite this laundry list of reasons why not to like the market, the market's been heading higher since March.

Sure there are issues with private equity, he said. Sure there are concerns about unemployment and foreclosures and hyperinflation. And yes, there are concerns over North Korea and even over whether

General Motors

(GM) - Get Report

are getting a raw deal, said Cramer.

But despite all of these negatives, stocks like

Apple

(AAPL) - Get Report

,

Google

(GOOG) - Get Report

and

VF Corp

(VFC) - Get Report

surged higher yesterday.

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Yesterday's rally was based on nothing, said Cramer, but it still happened.

Cramer said his view on the markets remains flexible. He said investors don't need to believe in a rally for one to happen. That's why he hopes they use today's weakness to buy more of the stocks they like.

One on One With Sheila Blair

In an exclusive interview, Cramer welcomed Sheila Bair, chairman of the Federal Deposit Insurance Commission, to the show to discuss the current state of the banking industry.

Bair said there is some positive news in the banking world. She said she is seeing the proverbial light at the end of the tunnel, and that depositors in FDIC insured banks have nothing to worry about. Although the FDIC does see some $70 billion in losses over the next five years, it has increased fees member banks must pay in order to bolster their reserves, she said.

Bair said the FDIC is looking increasingly to bank board of directors to "do the right thing" and ensure that bank management include the right people for the job and are met with rigorous reviews. "Boards need to do their jobs," she said, "the government shouldn't be doing it for them."

When asked why it's taking so long to close troubled banks, Bair said timing is everything. She said unlike the S&L crisis of the 1980's, many of the banks' losses are already there, so closing quickly is not as advantageous as finding the right buyer at the best price possible.

In the case of the recently failed BankUnited, Bair responded to critics by stating that there were three bidders and a competitive bidding process for that institution.

Finally, when asked about the high rate of bank closures in states like Georgia and Illinois, Bair said those problems stemmed from too many banks being in those states, coupled by high rates of construction and lending problems.

She said the FDIC, as well as other regulators, are rewriting regulations to address some of the lessons learned in those states.

Am I Diversified?

Cramer talked with callers to see if their portfolios have what it takes. The first caller's portfolio included

Wells Fargo

(WFC) - Get Report

,

ConocoPhillips

(COP) - Get Report

,

US Steel

(X) - Get Report

,

Apple

(AAPL) - Get Report

and

Bristol-Myers Squibb

(BMY) - Get Report

.

Cramer said this caller should be given his own mutual fund.

The second caller's top holdings included

GameStop

(GME) - Get Report

,

Nike

(NKE) - Get Report

,

Sprint

(S) - Get Report

,

Citigroup

(C) - Get Report

and

Microsoft

(MSFT) - Get Report

.

Cramer said while he's not a fan of GameStop, this portfolio is indeed diversified.

The third caller had

HealthSouth

(HOS) - Get Report

,

KBR

(KBR) - Get Report

,

Nordic American Tanker

(NAT) - Get Report

,

Packaging Corp of America

(PKG) - Get Report

and

Pfizer

(PFE) - Get Report

as their top five stocks.

Cramer said "this portfolio works for me."

Outrage of the Day

Cramer took aim at the exchanges and regulators who are still allowing the common stock of

General Motors

(GM) - Get Report

to trade. He said that in any other country, shares of a company on the verge of imminent bankruptcy would be cancelled or suspended.

Cramer said GM shares are worthless and are not a play on an eventual turnaround. When the new GM emerges from bankruptcy, he said, it's clear that the government will own 70% of the new entity, with the unions owning the rest.

Cramer said GM shares have made a joke of the market. No one has the guts to cancel them, he said, even though they're clearly not worth the paper they're printed on.

Lightning Round

Cramer was bullish on

Chevron

(CVX) - Get Report

,

Google

(GOOG) - Get Report

,

Marathon Oil

(MRO) - Get Report

,

Emerson Electric

(EMR) - Get Report

and

Sprint Nextel

(S) - Get Report

.

He was bearish on

Cal-Maine Foods

(CALM) - Get Report

,

Zebra Technologies

(ZBRA) - Get Report

and

Dynegy

(DYN)

.

Check out the latest edition of

"Cramer's Take onHeadline Stocks" on Stockpickr.

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

clicking here

.

Read more of Cramer's Mad Money Lightning Round insights

.

For "Mad Money" performance statistics and other links, check out Mad Money stats

At the time of publication, Cramer was long Wells Fargo, ConocoPhillips, Bristol-Myers Squibb, Chevron.

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.