Click here for an archive of Cramer's "Mad Money" recaps.

Jim Cramer, in his "Mad Money" show Monday, said that more than 7 million "teaser" mortgages are likely to be defaulted.

Investors should keep an eye out for the mortgage meltdown's ripple effects and protect their portfolios from the House of Pain.

"Stay defensive," he insisted, as he predicted more problems to come for banks, brokers and funds.

Cramer said to avoid the companies related to lending and homebuilding, such as

Thornburg Mortgage



Washington Mutual

(WM) - Get Report


Lehman Brothers



KB Home

(KBH) - Get Report


Beazer Homes USA

(BZH) - Get Report


Cramer said to look to the companies focused on staples, soft goods and drugs. He recommended

Procter & Gamble

(PG) - Get Report



(KO) - Get Report



(CL) - Get Report




betting that the mortgage mess will subside, Cramer said. However, Cramer believes that the Fed should cut rates.

Swearing by Schering

One stock Cramer recommended was



, which develops and markets medical therapies and treatments worldwide.

Its brands include Coppertone, Dr. Scholl's, Solarcaine and Tinactin. Schering-Plough's net sales for the second quarter of 2007 totaled $3.2 billion, up 13% from last year. Seven out of 10 of its largest-selling products posted double-digit sales for the second quarter, Cramer said.

The stock is getting knocked down now, but Cramer still believes it's a buy and is naturally far removed from the "mortgage madness." Cramer noted that Schering-Plough CEO Fred Hassan was one of his transformational CEOs back in May.

The company's operating margin is well below the sector's averages, and it recently issued a secondary offering. However, investors should wait for the stock to come in some pricewise before buying, Cramer stressed.

While this is not "an ideal economic climate," Cramer stressed that people still can make money. Even if "we have no control over what the Fed will do," investors must be ready for anything.

Hold the Vodafone

Cramer said investors should consider looking overseas. He recommended


(VOD) - Get Report

, the second-largest wireless carrier in the world. With 32 million subscribers, Vodafone leads the U.K. and Germany.

Image placeholder title

Cramer believes Vodafone will bring in more revenue per user. He also pointed out that Vodafone owns a "serious chunk" of

Verizon Wireless

(VZ) - Get Report

and is part of a still-emerging market; there are still areas of the world without cell phones. And the company has a strong dividend.

Cramer welcomed


(HOLX) - Get Report

Chairman and CEO Jack Cumming to the show and asked him about his company's pending merger with women's health company




When Hologic, which Cramer owns for his charitable trust,

Action Alerts PLUS, finishes its acquisition of Cytyc later this year, it will have $400 million to $500 million in EBITDA and nine No. 1 brands in women's health products, Cumming said.

Moreover, the chief executive said he is not worried about financing the deal, as there is no financial risk.

To view Cramer's interview with Jack Cumming, please click here.

Sudden Death

During his "Sudden Death" round, Cramer was bullish on

TBS International



Goldman Sachs

(GS) - Get Report

, which he owns for his charitable trust.

Lightning Round

Cramer was bullish on

FMC Technologies

(FTI) - Get Report


Rite Aid

(RAD) - Get Report






(TJX) - Get Report



(COST) - Get Report



(COP) - Get Report



(SI) - Get Report



(SLB) - Get Report



(GLW) - Get Report


First Solar

(FSLR) - Get Report


Arris Group

(ARRS) - Get Report



(ABB) - Get Report


Gentiva Health Services



Sears Holdings



Cramer was bearish on


(HOG) - Get Report





Evergreen Solar






WCI Communities



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


Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here


At the time of publication, Cramer was long ConocoPhillips, Corning, EMC, Goldman Sachs, Hologic and Sears Holdings.

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.