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"Carnage creates the best buys," Jim Cramer told viewers of his "Mad Money" TV show on Wednesday.

One company, he said, that fits this description is

Annaly Capital Management

(NLY) - Get Annaly Capital Management, Inc. Report

, which he also owns for his

Action Alerts PLUS portfolio. He's liked it since the inception of the show, and is once again re-recommending the stock.

He called Annaly "the king of all mortgage plays," saying it's one of the few lenders that actually buys mortgages with no credit risk. He said the company is flush with cash that it uses to pick through the rubble to buy the best assets.

Mike Farrell, the CEO and president of Annaly, once again appeared on the show to provide an update on the company. "Sometimes you win by not playing," he said, in reference to the company's decision not to get involved with subprime loans.

Farrell said his team spotted problems with subprime loans as early as 2003 and started to play it safe. He said Annaly now trades at a premium compared with its book value, making it the "business investors now want to be in."

Cramer reminded viewers about Annaly's great dividend and said the company is the way to play this environment.

The Best Oil Growth Company

In the second part of his series this week on great Brazilian stocks, Cramer touted

Petroleo Brasilero

(PBR) - Get Petroleo Brasileiro SA Sponsored ADR Report

.

He said Petrobras is not another "joke of an oil company" but rather a serious integrated oil conglomerate that deserves some respect.

Cramer said the oil company has the two things he looks for in an oil company: reserve growth and production growth.

Unlike

Exxon-Mobil

(XOM) - Get Exxon Mobil Corporation Report

, whose production has remained stagnant, Petrobras plans to increase production 47% from 2006 through 2012.

Petrobras also has incredible reserves with the newly discovered Tupi deep-water oil field that may contain as much as 8 billion barrels. Overall, Petrobras has increased its reserves 42% to 68%.

Cramer said he's still a fan of

Anadarko

(APC) - Get Anadarko Petroleum Corporation Report

,

Devon

(DVN) - Get Devon Energy Corporation Report

,

Apache

(APA) - Get Apache Corporation Report

and

XTO Energy

( XTO), the latter of which he also owns for his

Action Alerts PLUS portfolio.

However, Cramer insists Petrobras is the highest-growth oil company in the world.

Huckabee on the Housing Crisis

In an interview, Cramer talked with Republican presidential hopeful Mike Huckabee about the current housing crisis.

Huckabee said he's not a supporter of the proposed $600 federal tax rebate and doesn't think it will stimulate the U.S. economy. Noting he's not a fan of the federal government getting involved with the housing crisis, the former Arkansas governor said he prefers that the lenders step in and work with customers who have defaulted on their loans.

Cramer said more rate cuts are needed as well as the help of the Federal Housing Administration (FHA) to support the loans of those homeowners who are credit risks. Huckabee said that idea made sense to him.

Huckabee said the domino effect of 2 million homeowners losing their homes would have a devastating impact on the economy.

Am I Diversified?

In this segment, viewers called Cramer to find out if their portfolios are right for this volatile market. The first caller's portfolio included

Research In Motion

( RIMM),

Transocean

(RIG) - Get Transocean Ltd. Report

,

Corning

(GLW) - Get Corning Inc Report

,

Thompson Creek Metals

(TC) - Get TuanChe Ltd. Sponsored ADR Class A Report

and

EMC

(EMC)

.

Cramer said there was three of a kind with Research In Motion, EMC and Corning. He recommended replacing two of them with a health care company and defense name to round out the portfolio.

The second caller had

Apple

(AAPL) - Get Apple Inc. (AAPL) Report

,

AT&T

(T) - Get AT&T Inc. Report

,

Merck

(MRK) - Get Merck & Co., Inc. (MRK) Report

,

ConocoPhillips

(COP) - Get ConocoPhillips Report

and

US Bancorp

(USB) - Get U.S. Bancorp Report

as their top holdings.

Cramer liked this portfolio, saying "that's what I'm looking for."

The third caller's portfolio had

TheStreet Recommends

Yamana Gold

(AUY) - Get Yamana Gold Inc. Report

,

Annaly Capital

(NLY) - Get Annaly Capital Management, Inc. Report

,

Corning

(GLW) - Get Corning Inc Report

,

Sirius

(SIRI) - Get Sirius XM Holdings, Inc. Report

and

Triple-S Management

(GTS) - Get Triple-S Management Corporation Class B Report

.

For this portfolio, Cramer simply said "Hallelujah."

Sudden Death

Cramer was bullish on

Manitowoc

(MTW) - Get Manitowoc Company, Inc. Report

,

Terex

(TEX) - Get Terex Corporation Report

and

Wachovia

(WB) - Get Weibo Corp Sponsored ADR Class A Report

.

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Lightning Round

Cramer was bullish on

Wal-Mart

(WMT) - Get Walmart Inc. Report

,

TJX Companies

(TJX) - Get TJX Companies Inc Report

,

Foster Wheeler

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,

Textron

(TXT) - Get Textron Inc. Report

,

Elan Corp

(ELN)

,

Arch Coal

(ACI) - Get Albertsons Cos. Inc. Report

,

Peabody Energy

(BTU) - Get Peabody Energy Corporation Report

and

Chimera Investment

(CIM) - Get Chimera Investment Corporation Report

.

Cramer was bearish on

American Eagle Outfitters

(AEO) - Get American Eagle Outfitters, Inc. Report

,

Ford Motor

(F) - Get Ford Motor Company Report

,

Mindray Medical

(MR) - Get Montage Resources Corp. Report

,

Intercontinental Exchange

(ICE) - Get Intercontinental Exchange, Inc. (ICE) Report

and

Intel

(INTC) - Get Intel Corporation (INTC) Report

.

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

clicking here

.

For more of Cramer's insights during the Lightning Round, click here

.

At the time of publication, Cramer was long Annaly Capital Management, Foster Wheeler, XTO Energy, Transocean, Corning, EMC and ConocoPhillips.

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.