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NEW YORK (

TheStreet

) -- "This is the opposite of a bubble," Jim Cramer told his

"Mad Money"

TV show viewers Wednesday, as he took on the critics and skeptics that are comparing today's markets to the last time the

Dow Jones Industrial Average

crossed 13,000.

Cramer said that when the Dow hit 13,000 the last time, the markets were rallying on the growth in Brazil, Russia, India and China, and not on U.S. growth. He said everyone was profiting off of the growth in commodities. At the same time, he added, investors thought that the banking system was solid and were fraudulently led to believe that housing prices could never fall.

But today's markets are different, said Cramer. Back then, shares of

Bank of America

(BAC) - Get Report

and

Alcoa

(AA) - Get Report

both traded at $44 a share, he noted. Today, Bank of America sits at $8 a share and Alcoa struggles to stay above $10. "This market is irrationally un-exuberant," said Cramer.

Cramer said when he looks at the 30 stocks that make up the Dow, only two, Alcoa and

Hewlett-Packard

(HPQ) - Get Report

are worrisome. He said the banking stocks are on a much better footing than they were in 2008. Likewise with the drug stocks, which now have dealt with their patent expirations and have excellent balance sheets. Cramer said that sector by sector, companies are doing better.

"There are no bubbles here," Cramer concluded, saying that the markets would have to rally substantially from today's levels to even come close to how overvalued they were back in 2008, when a host of global-economic crises were ahead of us instead of largely behind us.

Ambitious Plans

In the "Executive Decision" segment, Cramer spoke with Patrick Daniel, the outgoing president and CEO of

Enbridge

(ENB) - Get Report

, an oil and gas pipeline company that's currently growing at 10% annually. Enbridge currently pays a 2.9% dividend and shares have rallied 30% since Cramer first featured the company in March 2011.

Daniel said with America rapidly increasing its oil and gas production, there's a scramble to build the infrastructure to handle it, a trend in which Enbridge is right in the middle. Whether it's the Bakken or Eagle Ford oil shale or the Canadian oil sands, Daniel said there's strong demand for drilling and for pipelines to move what's produced.

Enbridge is also at the forefront of the battle to close the gap between the price of West Texas oil and Brent Crude, something that's been crippling American oil and gas producers.

Daniel said that Enbridge is reversing the flow of its pipeline between the Gulf of Mexico and Cushing, Okla. and will have 150,000 barrels a day flowing in the right direction by mid-year and 450,000 a day by next year. However that might still not be enough, he said, which is why the company is looking into building a twin to its north-south pipeline so it can move up to one million barrels a day if needed.

Daniel said that Enbridge is also investing huge amounts of capital to expand its Bakken shale oil pipelines. He said oil is currently being sent by rail from the Bakken, which is a very expensive operation.

When asked about America's use of domestic natural gas, Daniel said that natural gas is a tremendous opportunity for America. He said that North America could easily become energy independent if Washington were to get onboard and support the fuel.

Daniel went on further to explain that the delays in the Keystone XL pipeline, for example, were largely based on the impractical notion that America should just not use oil at all. But in reality, he noted, using oil and gas from both the U.S. and Canada is far cleaner than using coal.

Cramer wished Daniel all the best on his future pursuits and continued his recommendation of Enbridge.

Surprise Rally

In a new segment entitled "What the Heck," Cramer examined the surprising rally in

Lockheed Martin

(LMT) - Get Report

, a defense contractor, on the heels of what seems like endless chatter of continued defense budget cuts.

Cramer explained that since Lockheed derives 82% of its sales from the U.S. government, the company should suffer as defense spending falls from 5% to just 3% of the overall federal budget. But instead of retreating, shares of Lockheed rallied 17% last year and are already up 9.3% so far this year.

So does the move in Lockheed make sense? Cramer said it does. He said the expectations for the defense contractors are extremely low, with the sector bracing for the worst case scenario that never materialized. The next round of budget cuts won't happen until 2013, he noted, giving the group breathing room.

Second, Cramer noted that the defense companies have offset falling revenues by cutting costs, allowing them to generate enough cash to buy back shares and boost earnings per share numbers. Finally, the defense group is incredibly shareholder friendly, with Lockheed offering a 4.5% yield, which was boosted by 33% back in September.

Cramer said that the defense names also have the calendar in their favor, as the group has outperformed in seven of the past nine election years. He said that all of these arguments make a persuasive case for owning the defense contractors, but he would be cautious given the multitude of variables that play into their stock valuations.

Am I Diversified?

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

Caterpillar

(CAT) - Get Report

,

Alcoa

(AA) - Get Report

,

American Capital Agency

(AGNC) - Get Report

,

Morgan Stanley

(MS) - Get Report

and

Waste Management

(WM) - Get Report

.

Cramer said this portfolio was properly diversified and had a good dividend yield as well.

The second caller's top holdings included

Walt Disney

(DIS) - Get Report

,

Energy Transfer Partners

(ETP)

,

3M

(MMM) - Get Report

,

Nordic American Tanker

(NAT) - Get Report

and

Solar Capital

(SLRC) - Get Report

.

Cramer also blessed this portfolio as diversified with a good yield.

The third caller had

Phillip Morris

(PMI)

,

Johnson & Johnson

(JNJ) - Get Report

,

Johnson Controls

(JCI) - Get Report

,

GlaxoSmithKline

(GSK) - Get Report

and

J.M. Smucker

(SJM) - Get Report

as their top five stocks.

Cramer said he's not a fan of Johnson & Johnson and advised selling that stock in favor of a financial like

Wells Fargo

(WFC) - Get Report

in order to be properly diversified.

Lightning Round

Cramer was bullish on

Skyworks Solutions

(SWKS) - Get Report

,

Freeport-McMoRan

(FCX) - Get Report

and

Baidu.com

(BIDU) - Get Report

.

Cramer was bearish on

Nuance Communications

(NUAN) - Get Report

,

United Therapeutics

(UTHR) - Get Report

,

Vale

(VALE) - Get Report

,

Sony

(SNE) - Get Report

,

Sohu.com

(SOHU) - Get Report

and

Deluxe

(DLX) - Get Report

.

Closing Comments

In his "No Huddle Offense" segment, Cramer sounded off against those who criticized his recommendations of

First Solar

(FSLR) - Get Report

and

SodaStream

(SODA) - Get Report

, two stocks that fell markedly today. Cramer said he welcomes criticism when he's wrong, but in the case of First Solar and SodaStream, he told investors to sell a long time ago.

Cramer said at one time First Solar had the best technology at the best prices, but after the Chinese eroded margins and the Europeans stopped subsidies, it was time to ring the register in a hurry, which he recommended investors do at $132 a share.

Cramer admitted he also recommended SodaStream, back when its home soda machines were flying off the shelves. But when sales slowed dramatically last July, Cramer said shares were too hot and also advised taking the money and running for the exits.

"When the facts change, I change my mind," Cramer is fond of saying. In the case of these two stocks he did just that, saving investors a ton of heartache.

--Written by Scott Rutt in Washington, D.C.

To contact the writer of this article, click here:

Scott Rutt

.

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

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.