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Jim Cramer told viewers of his "Mad Money" TV show on Friday that the recent decision by Congress to give a $6 billion tax rebate to the country's largest homebuilders is "a conspiracy that's sabotaging the value of your home."

Cramer called the decision a "big mistake" because it's giving money away to the very group that helped create today's housing crisis. "If you're looking for someone to blame for the housing crisis in this country, the homebuilders should be at the top of the list," he said.

Cramer: Stagflation? Whatever

According to Cramer, the major homebuilders, along with their mortgage subsidiaries, sold hundreds of thousands of homes to unqualified and speculative buyers in deals that have destroyed home values across the country.

To make matters worse, the homebuilders will probably use their new found windfall to build even more homes, and thus depress existing home values even further, he says.

Cramer strongly advocated not rewarding the homebuilders with huge tax breaks. Instead, he said, Congress, in a throwback to President Franklin D. Roosevelt who subsidized farmers to hold back production, might consider paying homebuilders "to do nothing until home prices stabilize."

Cramer, though, reserved his harshest criticism for Congress, calling their actions "outrageous and immoral."

Cramer speculated the rebate might have something to do with the decision of homebuilders to hold back their political contributions after they were not included in the stimulus package.

"This is the same Congress," he reminded viewers, "that refuses to help the hard working homeowner by allowing the Federal Housing Administration to back home loans and help keep people in their houses."

He urged all of his viewers to call and write their elected officials and demand that the $6 billion tax rebate be repealed.

Sticking With Schering-Plough

Cramer once again welcomed Fred Hassan, Chairman and CEO of Schering-Plough ( SGP), to the show to discuss the ongoing controversy surrounding the company's anti-cholesterol drug Vytorin.

Cramer said Schering-Plough, which he also owns for his Action Alerts PLUS portfolio, earlier this week announced it would cut costs by $1 billion, on top of a previously announced $500 million in cost cuts.

He said Schering's stock now trades at just 9.7 times the new greatly reduced earnings estimates after it was crushed by the negative Vytorin news last weekend. He also noted that Schering still has the second highest number of expected drug approvals between now and 2012.

Hassan said he saw the groundswell surrounding Vytorin as a natural, emotional reaction to the negative news, adding the truth is now starting to come out.

He said that it's difficult to comprehend the panel's reaction to what he calls a non-scientific study or the resulting negativity. "Patients should stay on their meds," he said. "There is no science behind these few, vocal critics."

Hassan also reminded viewers that he is committed to shareholder value. In addition to the aggressive cost cutting, he said the company still has over $15 billion in sales from other products.

Cramer reiterated his buy on Schering-Plough, saying that while he may not have called the exact bottom in the stock, it continues to be a great company with sizeable potential. "I'm sticking with Schering," he said.

A Porfolio for the Times

Cramer unveiled a new, diversified dividend portfolio for investors.

In "a period of incredibly low interest rates," he advised investors not try and hit home-runs with their stock picks, but instead just try and get on base.

The new portfolio includes Dow Chemical ( DOW), with a 4.2% yield and 65% of its business residing outside of the U.S.

It also includes Permain Basin Royalty Trust ( PBT), a U.S. Energy Trust split 50/50 amongst oil and natural gas, yielding 9.8%.

The third stock in the portfolio is World Wrestling Entertainment ( WWE). With a 7.8% yield, Cramer said this entertainment giant is a steal.

Fourth is CPFL Energia ( CPL), the Brazilian electric utility yielding 5.9%.

The fifth is HCP ( HCP) with a 5.2% dividend yield.

Altogether, Cramer said this portfolio yields three times that of the S&P average, which translates to a 4.7% yield after taxes.

"In a low-growth world, we want stocks with stability and consistency," said Cramer. "That's why these stocks are perfect for your 401k."

Mad Mail

Cramer told a new investor that that the first $10,000 of his portfolio should be invested in an index fund, and not in individual stocks.

Afterward, he said, investors should stay away from speculative stocks like Darling International ( DAR) and stick with stable stocks like Goldman Sachs ( GS).

Lightning Round

Cramer was bullish on Goldman Sachs ( GS), Urban Outfitters ( URBN), VF Corp ( VFC), Jones Apparel ( JNY), Target Corp ( TGT), Potash ( POT), Mosaic ( MOS), Agrium ( AGU)and Southwestern Energy ( SWN).

Cramer was bearish on China Finance Online ( JRJC), Merrill Lynch ( MER), Tata Motors ( TTM), Best BUY ( BBY), Cherokee ( CHKE), Terra Industries Inc ( TRA), Southwest Airlines ( LUV), Vasco Data Security ( VDSI), ING Group ( ING)and Riverbed Technologies ( RVBD).

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 Schering-Plough and 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.

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