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"You can't afford to not own gold," Jim Cramer told viewers of his "Mad Money" TV show Monday.

After advising viewers to sell 20% of their portfolios on Friday, Cramer said it's time to put that money into gold stocks such as

Agnico-Eagle Mines

(AEM) - Get Report

,

Barrick Gold

(ABX)

or an ETF that mimics the price of gold.

Cramer told viewers that they simply "must own gold" in times of uncertainly. With the fate of Treasury Secretary Henry Paulson's financial bailout plan still uncertain in Congress, he said he cannot endorse a portfolio that does not include a gold stock.

Cramer said owning gold makes sense whether the Paulson plan succeeds or fails. If it fails, he said, the financial system will completely freeze up, leaving gold as the only safe harbor. In a market where treasuries and cash pay almost nothing, gold will be the only trustworthy place to store value, he said.

On the flip side, Cramer said if the Paulson plan does pass Congress, investors need to be concerned about inflation. With the government issuing so much new currency, inflation will be inevitable and gold will perform well. Either way, he said, gold is where investors will want to be.

Cramer said the fundamentals for gold are strong, with worldwide demand for gold still increasing across the globe. Cramer said even in the worst case situation, gold stocks will still make investors money although they may underperform the market.

"Gold makes sense when nothing makes sense," said Cramer.

Cramer: Goldman, Morgan Better Off

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Quick Action

Cramer welcomed Sen. Kit Bond (R., Missouri) to the show to find out details of the government's bailout plan for the U.S. financial system.

Bond called the current financial system "filled with greed and regulatory loopholes," adding Congress needs to move quickly to protect taxpayers from more fallout.

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Bond said Congress also needs to act responsibly. He said there needs to be accountability for those in charge, more transparency of the transactions and greater government oversight of the financial industry.

On the accountability issue, Bond said the issue of executive compensation should be addressed at a later date. However, he said he's determined to see that no executive get a "golden parachute" and that an executive should be held accountable for his firm's actions.

On the issue of whether a government seizure of home loans is good for taxpayers, Bond said that taxpayers shouldn't expect a profit, but with a fair value of around 60 cents on the dollar, taxpayers won't be taking on the full value of the loan, either.

Cramer remained vigilant on the issue of rating home loans based on their vintage, the credit scores of the borrower and the location of the property. Bond agreed that greater transparency and classification of the loans needs to happen.

A Dysfunctional Market

"When the market isn't acting like a market, it's not the time to buy stocks hand over fist," Cramer told viewers while opining on the market's uncertain outlook.

Cramer said he's not sure what the Treasury Department's bailout plan will ultimately look like, but he views it as a capitalist move. He said any move that preserves free, unregulated capitalism is not communist or socialist, and he said he's a backer of any plan that wards off another Great Depression.

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Cramer said he's not sure what to make of a market where firms like

Goldman Sachs

(GS) - Get Report

, which he also owns for his

Action Alerts PLUS portfolio, and once the benchmark of solid financial firms, and one that did not make any mistakes or get involved in sub-prime mortgages, can teeter on brink of collapse.

However with the likely passage of the bailout plan, Cramer said firms like Goldman have gone from risky stocks to cheap stocks. He recommended what he called solid banks like

Wells Fargo

(WFC) - Get Report

and

US Bancorp

(USB) - Get Report

.

Cramer also recommended consumer stocks as a defensive play in uncertain times. And he said that real estate, the asset that caused all of the problems, is starting to look better and better. Given how the market is acting however, Cramer advised waiting for the next big pullback before buying in.

Lightning Round

Cramer was bullish on

Fluor

(FLR) - Get Report

,

McDermott International

(MDR) - Get Report

and

Joy Global

( JOYG).

He was bearish on

Arch Capital Group

(ACGL) - Get Report

,

SPX Corp

(SPW)

,

Babcock & Brown Air Limited

(FLY) - Get Report

and

Flextronics

(FLEX) - Get Report

.

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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 Goldman Sachs.

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.