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A little optimism was on display during Jim Cramer's "Mad Money" TV show Monday.

Simply put, "things are finally getting better," Cramer told viewers. He credited President-elect Barack Obama for finally taking some of the uncertainty out of the markets.

Cramer said that there's nothing the markets hate more than uncertainty. But with the appointments of Tim Geithner as Treasury secretary and Lawrence Summers as head of the White House Economic Council, Cramer said there is now hope where no hope existed before. "Wall Street likes these guys," he said, "and that means something."

Cramer also credited the government's bailout of


(C) - Get Citigroup Inc. Report

as a second catalyst for the markets, calling the plan enough to make him recommend the troubled bank as a buy. He called the bailout "a template that works" and one that can be used in other bailouts.

Unlike the bailout of


(AIG) - Get American International Group Inc. Report

, which offered little transparency, and the decision to let Lehman Brothers fail completely, Cramer said the

Citigroup plan

keeps the common stock alive, does not punish the

preferred shares

and doesn't dump the troubled assets back into a troubled market.

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TheStreet Recommends

"Friday we thought Citigroup would fail," he said, "but today we learned everything will be OK."

Cramer also credited Obama himself for part of today's rally, commending the president-elect for his quick and pragmatic approach toward fixing the nation's problems.

He said that every day of delay costs the economy more jobs and more foreclosures, and that's why Obama's job stimulus program focusing on rebuilding the country's infrastructure is being so well received.

Cramer's bottom line called for a little hope and a little bit of optimism as the markets digest these changing events.

Cramer: A New Reason to Trade Banks

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Obama's Recovery Plan

Cramer once again welcomed Eric Schmidt, chairman and CEO of


(GOOG) - Get Alphabet Inc. Report

, to the show to dig even deeper into Obama's plans to turn around the U.S. economy.

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Schmidt called Obama's economic team a group of really smart people working feverishly to develop a plan that can be implemented on Jan. 20. He said the Obama team is bringing fresh ideas and new energy to the problem.

Schmidt said Obama is focused on Main Street and bringing prosperity to the middle class. He said he's confident there will be a stimulus plan in January that includes a sizable amount to rebuild the country's infrastructure, including roads, bridges, schools and energy infrastructure.

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Regarding the Citigroup bailout, Schmidt said it appears the government finally found the right way to structure this type of deal, and felt the model would be applied to other institutions. He said the recent hearings with the automakers also shows that the government is no longer handing out money without a solid plan for recovery.

When asked how the economy's troubles would affect the Internet and Google in particular, Schmidt said that he doesn't really know how the recession will affect his company's earnings, but he expects the Internet overall to continue to grow and continue to do "very, very well."

Some Sunshine

After two huge up days in the market, Cramer found himself in the unusual position of asking "am I too negative?" He first sounded the alarm on Sept. 19, when the Dow was at 11,300, and he advised viewers to sell 20% of their portfolios.

He was again bearish on Oct. 6, when on NBC's "Today" show he encouraged investors to take out enough cash from their portfolios to cover the next five years worth of immediate spending needs.

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But today Cramer said he can actually say things are better than they were yesterday. And while he cannot recommend buying into the market hand over fist, he said there are bargains to be had in some areas, including corporate bonds.

Cramer said even the ill-fated mortgage back securities have hit levels that seem attractive. For some of these instruments, he said, there would need to be a 60% foreclosure rate for the bonds to be worthless. Yet even the most bearish of estimates only call for a 25% foreclosure rate, making the bonds worth more than what they're currently fetching.

With so much money sitting on the sidelines, Cramer said even a stock like

Jones Apparel


in the hated

retail sector

may be attractive. This $3.81 stock has $2.40 in cash, said Cramer, and with the company's debt more than manageable he'd consider them a buy on the pullback.

Cramer said while he expects the markets to retest its recent lows, with the good news starting to trickle in, it'd be irresponsible to become a permanent bear.

Outrage of the Day

Cramer called the homebuilders' plea to Congress for a $250 billion bailout simply outrageous! "These are guys who caused the problem," said Cramer. He said the last thing the country needs it more homes, and Congress should pay the homebuilders not to build homes.

Cramer said Congress simply cannot get behind any plan that would cause existing homeowners any additional pain and suffering. He said the home building industry needs to either merge or die, and cannot be given a government handout that will undermine the economy even further.

Mad Mail

In the "Mad Mail" viewer feedback segment, Cramer told a viewer that when it comes to dry bulk shippers, he's only trusting

Nordic American Tanker

(NAT) - Get Nordic American Tankers Limited Report

and would not consider rival

Excel Maritime



When analyzing another viewer's portfolio, Cramer was bullish on



(WIN) - Get Windstream Holdings, Inc. Report

, cautiously optimistic on

World Wrestling Entertainment

(WWE) - Get World Wrestling Entertainment Inc. Class A Report

, but called


(MO) - Get Altria Group Inc. Report

a screaming buy.

Lightning Round

In the Lightning Round, Cramer was bullish on

RPM International

(RPM) - Get RPM International Inc. Report



(HPQ) - Get HP Inc. Report


General Cable



United States Steel

(X) - Get United States Steel Corporation Report



(NUE) - Get Nucor Corporation Report



(HON) - Get Honeywell International Inc. Report


Cramer was bearish on

Eastman Kodak

( EK),


(NKE) - Get Nike Inc. Report


Steel Dynamics

(STLD) - Get Steel Dynamics Inc. Report


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At the time of publication, Cramer was long Hewlett-Packard, Altria.

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.