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Today's market action had Jim Cramer wondering "what if?" on his "Mad Money" TV show Wednesday.

He said that it wasn't just the bad earnings from Alcoa ( AA) and Intel ( INTC) that killed the markets, but also the comments from President-elect Barack Obama.

"What if the stimulus fails?" asked Cramer. What if slow growth prevails for the foreseeable future? What if the markets are in for more days like today?

Cramer said the economy and the markets don't want to hear about jobless benefits being extended. He said they need to hear about jobs being created and roads being built.

Cramer said in times of uncertainly, investors need to be prepared, with stocks like his No. 3 three favorite stock in the Dow Jones Industrial Average, Johnson & Johnson ( JNJ - Get Report), which he also owns for his Action Alerts PLUS portfolio.

Johnson & Johnson is a classic defensive name, said Cramer, and has the added benefit of being down 13 points from its high.

Cramer called Johnson & Johnson one of the smartest drug managers around, and one that just made two great acquisitions on the cheap with its purchase of Mentor and Omrix.

The company is now in a great position to expand while cutting costs. He also liked the fact that celebrity investor Warren Buffet has bought into the company at levels higher than where it trades today.

Historically, times of weakness are great times to buy Johnson & Johnson, said Cramer. Shares are currently down 18% from their recent highs. The last time shares were down this much was April, 2002, when shares fell from $65 to $40 only to rebound to $72 a share. In November 1999, shares fell from $52 to $33 a share, only to rebound to $65. "This is one you buy on weakness," said Cramer.

Cramer: Forecasts for GM and H-P in 2009

Cramer said Johnson & Johnson also has many upsides, including its aggressive cost cutting, strong drug pipeline and many great divisions with strong sales.

A weakened dollar should also bode well for the company's vast international sales. Johnson & Johnson, which traditionally trades at 17 times earnings, is trading at just 13 times earnings.

The company is exactly the stock to own in a recession, said Cramer, "and what could be better than getting it cheaper than Warren Buffet?" He said Johnson & Johnson could easily see $70 a share.

A Big Bang for the Buck

Cramer checked in with Family Dollar ( FDO) chairman and CEO Howard Levine, to find out if there's more to come after the company reported better-than-expected earnings.

Family Dollar reported 42 cents a share in earnings compared to the 40 cents a share Wall Street was expecting. The company also raised 2009 guidance from between $1.58 to $1.78 a share to $1.63 to $1.81 a share. Additionally, Family Dollar lowered its inventory levels 4.5% while increasing gross margins by 0.8%.

Levine credited some of the company's successes to its emphasis on food programs, including accepting food stamps at many of its stores. He called the move, along with accepting credit cards, "the right place to be."

Levine also reminded viewers that Family Dollar is celebrating its 50th anniversary, and noted that the company has the experience to compete effectively in any environment, good and bad, since it's been through many economic cycles before.

Levine also talked about the company's private label program, which he expects to expand on in 2009, by improving merchandise and upgrading packaging. Cramer said he thinks Family Dollar just had the first of many great quarters to come.

Stockpickr

Outrage of the Day

Cramer appealed to President-elect Barack Obama to assign a special prosecutor to go after organized financial crimes. "Investors will not come back to this market until they know the bad guys are gone," he said.

BankingMyWay

Cramer said the markets need to see a sea of indictments to restore confidence. He recommended using the RICO Act to prosecute all those who told investors the "fundamentals were sound," when clearly they weren't.

Prosecuting these executives will not be hard, said Cramer, since there are witnesses galore willing to testify against those who cost them everything.

Am I Diversified?

Cramer spoke with callers to see if their portfolios have what it takes. The first caller's portfolio included Fluor ( FLR), Apple ( AAPL), Chevron ( CVX), Corning ( GLW) and Gilead ( GILD).

Cramer said Apple and Corning are two tech companies and he'd keep Corning given how cheap that stock has become.

The second caller's top holdings included Wyeth ( WYE), Florida Power & Light ( FPL), Coca-Cola ( KO), Disney ( DIS) and Verizon ( VZ).

Cramer called this portfolio diversified.

The third caller had Johnson & Johnson ( JNJ - Get Report), Altria ( MO), Clean Energy ( CLNE), Eaton ( ETN) and Eagle Materials ( EXP) as their top five stocks.

For this portfolio, Cramer said it's a total house of pleasure.

Lightning Round

Cramer was bullish on Netflix ( NFLX - Get Report), Novo Nordisk A/S ( NVO - Get Report), Panera Bread ( PNRA)and Anadarko Petroleum ( APC).

Cramer was bearish on Diebold ( DBD - Get Report), Intuitive Surgical ( ISRG - Get Report)and Chesapeake Energy ( CHK - Get Report).

Check out the latest edition of "Cramer's Take onTop-Searched Stocks" on Stockpickr.

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Read more of Cramer's Mad Money Lightning Round insights.

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At the time of publication, Cramer was long Johnson & Johnson, Gilead Sciences, Eaton and Altria.

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."

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