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General Motors

(GM) - Get Report

must be saved if there is any hope for a sustainable rally in the stock market, Jim Cramer said Monday on his "Mad Money" TV show.

He told viewers not to count on such news as the Chinese economic stimulus, which prompted an early rally today in the

Dow Jones Industrial Average

before it closed down 73.27 points, or 0.8%, to 8870.54, after being up by as much as 215 points.

Cramer said the markets cannot rally until the federal government offers a bailout not only to GM but also


(F) - Get Report



. "It's all one piece," he said.

He said the Bush administration has done plenty to help preserve the bonuses and dividends of troubled financial institutions while leaving workers on Main Street to fend for themselves. He said President-elect Barack Obama understands the need to bailout of the auto industry is all about saving jobs.

Cramer said his East Coast friends have joked about the idea extending a hand to well-paid autoworkers who do little work. But he said the only real option to get a sustainable market rally is to go through with the bailout for Detroit.

Failure to do so would result in a worsening economy and further declines in the market and 401Ks.

Cramer: Inside Goldman's Slump

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Time to Yield

Cramer said this is a time in the market where traders need stocks with high dividend yields --anything over 4%.

More importantly, he noted, it's key to look for "accidental high-yielders." These are solid companies that are offering a high yield because of an overdone stock decline.

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Such a stock is

PPG Industries

(PPG) - Get Report

, which is down 50% from its 52-week high. But Cramer believes the stock, which is now offering a 4.65% yield, has been unfairly punished, as the company has raised its dividend every year since 1972.

Cramer reiterated his idea that traders reinvest the dividend in the stock so that they can capture the power of the compounding dividend even if the stock does nothing for a while.

Cramer also likes that the company because it has $600 million in cash, which could mean a stock buyback program.

He also likes the fact that one-third of the company's business is in Asia, making it a good Chinese infrastructure play, as well as the notion that the specialty chemicals maker will benefit from lower oil and natural gas prices in its manufacturing process.

"It's a broken stock with a great dividend to boot, not a broken company," Cramer said.

Mad Mail

A viewer wrote Cramer and asked if there was a trade in higher gun sales that are happening due to some perception of a crackdown coming from an Obama presidency. Cramer said there was not: "Sometimes there are things that aren't investible."

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Cramer told another mail writer that he didn't favor the idea of reducing risk by buying mutual funds or exchange-traded funds with yields. He believes he can pick the best individual stocks offering top yields.

Another viewer asked Cramer if there were any healthcare of energy plays ahead of the Obama presidency. Cramer offered


(THC) - Get Report

as a healthcare play, but said any energy or solar names just aren't working right now.

"It's three months before this guy comes in, and there's a lot of pain before that," Cramer said.

Am I Diversified?

Cramer found three winning portfolio's in a special Monday edition of "Am I Diversified?"

The first caller's portfolio comprised

Advanced Micro Devices

(AMD) - Get Report



(CBS) - Get Report



(CAT) - Get Report


Procter & Gamble

(PG) - Get Report

, and

John Deere

(DE) - Get Report

, the latter two which he also owns for his

Action Alerts PLUS portfolio.

Cramer OK'd the holdings, saying Procter & Gamble holds up well in a tough economy, AMD is becoming an interesting speculation with an upcoming splitoff, while Caterpillar and Deere serve very different customers.

The next caller held


(PFE) - Get Report





Bank of America

(BAC) - Get Report



(T) - Get Report

, and


(MO) - Get Report

, which he also owns for his

Action Alerts PLUS portfolio.

Cramer blessed the portfolio, liking both the diversification and high-yield names.

He similarly gave the thumbs-up to a caller's holdings of


(USB) - Get Report



(MRK) - Get Report


Chesapeake Energy

(CHK) - Get Report



(KO) - Get Report

and Altria as a well-diversified, nicely yielding portfolio.

Lightning Round

Cramer was not bullish on any stock.

He was bearish on




US Airways



First Solar

(FSLR) - Get Report


First Solar

(FSLR) - Get Report





And he was down on

Lockheed Martin

(LMT) - Get Report


General Dynamics

(GD) - Get Report



(KEX) - Get Report



(SSW) - Get Report



( RRS); and



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At the time of publication, Cramer was long Altria, Procter & Gamble and Deere.

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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, 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, 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 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.