"We all know the start of the year is the best time for crystal-ball gazing," Jim Cramer told his

"RealMoney" radio show listeners on Wednesday, so he gave them his five predictions for what

should

happen in 2006.

For starters,

General Motors

(GM) - Get Report

will have to file for bankruptcy, despite a J.P. Morgan report saying that the automaker's cash flow is good enough to keep it afloat, Cramer said.

He said that given the company's obligations vs. the money it has coming in, the smartest thing the automaker can do is file for bankruptcy like the many coal, steel and textile companies of yore.

"So if you're in GM," he told his listeners, "think again."

His second prediction was that

Citigroup

(C) - Get Report

will merge with

Goldman Sachs

(GS) - Get Report

.

This should happen because after regulators cleaned house at Citigroup, it left the bank with a bunch of lawyers at the top and the revenue producers out the door.

Cramer said that by buying Goldman, Citigroup would nab top-notch bankers at a company that sells at too low a price-to-earnings ratio.

He also said that

Comcast

(CMCSA) - Get Report

should buy

CBS

(CBS) - Get Report

, which has been spun off from

Viacom

(VIA) - Get Report

, because it represents a fabulous brand with proprietary content.

Comcast is in a tug of war with cable, phone and satellite dish companies, and Cramer said that having proprietary content will allow it to put many of these struggles at rest.

Image placeholder title

He said that Rupert Murdoch could buy the

Wall Street Journal

, because the changes made at the top of

Dow Jones

( DJ) have not done well.

"It's a great provider of newspaper content, but it's not branching out that well into the Web or TV," he said. "Just being the best in print isn't enough anymore."

Cramer said Murdoch wanted the company a few years ago for $70, and now he can get it for $50. Shares of Dow Jones traded recently on Wednesday at $39.06.

M&A in the pharmaceutical sector was his final prediction for what should happen this year. Cramer said that

Pfizer

(PFE) - Get Report

and

Bristol-Myers Squibb

(BMY) - Get Report

will merge to help Bristol-Myers out of a patent challenge.

He also said

Schering-Plough

( SGP) should merge with

Merck

(MRK) - Get Report

to put all the best anti-cholesterol drugs under one roof.

Going Nuclear

A caller wanted to know if

Cameco

(CCJ) - Get Report

, the world's largest uranium producer, is the right way to get into nuclear power.

Cramer said that even though the stock has doubled in the last year and sells just below its 52-week high at $69, it's still a buy.

He said that it's just important to not be a pig. Don't buy all that you want at once, Cramer said. Then all you really risk is that the stock goes on a romp and you've only bought half of what you wanted.

He also recommended

Quidel

(QDEL) - Get Report

, saying that diagnostics is an excellent business in which to be. But he said not to expect an immediate reward.

Cramer said that he'd been wrong to assume that

Sonic

(SONC)

and

Ruth's Chris Steak House

(RUTH) - Get Report

would not be hurt too much by the hurricanes, but they were.

He said this will be a "hurricane-hurt" quarter for these companies, but that he wants to see earnings results to show whether the last of the big bulls is gone before pulling the trigger on Sonic.

Another caller wanted to know if it's too late to put money overseas given the fact that so many of those markets have rallied.

Cramer said that he still thinks it's important to have 15% of one's money overseas. He recommended looking for a pullback in companies like

Southern Copper

( PCU),

Rio Tinto

( RTP) and

Compton Petroleum

( CMZ), before picking up any one of these stocks.

A listener who has 15% of her 401( k) in

Fidelity Latin America

(FLATX) - Get Report

said she was worried that the fund could crash and burn after gaining about 50% in the last six months.

Cramer said not to worry because the fund is strong, but to take 5% off the table to lock in those profits.

Am I Diversified?

Listeners got a chance to play "Am I Diversified?" -- a game that lets Cramer decide whether they have a diversified portfolio based on their top five stocks.

The first caller had "a rockin' good portfolio," which featured

Advanced Micro Devices

(AMD) - Get Report

,

Ameritrade

(AMTD) - Get Report

,

Allscripts

(MDRX) - Get Report

,

Altria

(MO) - Get Report

and

Enbridge

(ENB) - Get Report

.

"This is the kind of distribution I'm looking for from callers," Cramer said, lauding the combination of a semiconductor company, a finance brokerage that's about to pay a $6 dividend, a solid overseas natural gas play and a great

Stocks Under $10 play.

He also talked up Altria, which he said will skyrocket to $105 from its current $77, once it splits into three businesses.

He also gave the thumbs-up to a portfolio with

IBM

(IBM) - Get Report

, Goldman Sachs,

Starbucks

(SBUX) - Get Report

,

Phelps Dodge

( PD) and

Amgen

(AMGN) - Get Report

, as well as to J.P. Morgan,

GameStop

(GME) - Get Report

,

Chesapeake Energy

(CHK) - Get Report

,

Procter & Gamble

(PG) - Get Report

and

Microsoft

(MSFT) - Get Report

.

Cramer said that a portfolio with IBM, Pfizer, Altria,

Cisco

(CSCO) - Get Report

and

Bed Bath & Beyond

(BBBY) - Get Report

had too much tech and recommended trading Cisco in for a mineral or resource company.

He also said that

Engineered Support Systems

(EASI) - Get Report

, AMD, Bristol-Myers Squibb, Schering-Plough and

Mylan Laboratories

(MYL) - Get Report

had a "three of a kind" portfolio.

Cramer said to turn in Bristol-Myers and Mylan for a resource stock and a bank.

At the time of publication, Cramer was long Altria, Ameritrade, GameStop, Procter & Gamble, Schering-Plough and Microsoft.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click

here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click

here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click

here to get his second book, "You Got Screwed!" and click

here to order Cramer's autobiography, "Confessions of a Street Addict."