Cramer's 'Mad Money' Recap: March 9

This article was originally published March 9.

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


In the middle of the biggest bear market since the Great Depression, Jim Cramer told the viewers of his "Mad Money" TV show Monday his playbook isn't working in a market that has moved into uncharted territory.

In a typical recession, when there's strength in consumer stocks like Procter & Gamble ( PG) and Clorox ( CL), there's weakness in the rails or mineral stocks.

But today, he said, there was weakness across the board, from Norfolk Southern ( NSC) and FedEx ( FDX), to IBM ( IBM) and Hewlett-Packard ( HPQ).

Cramer said everything he's learned in his 30-year career on Wall Street doesn't seem to matter anymore, as the markets chart new courses in uncharted waters.

Utilities used to be the bedrocks of recession, he said, but not anymore. Insider buying used to be a leading indicator, but every insider that bought recently has just been dead wrong, said Cramer.

Even Warren Buffet has been wrong, said Cramer, as has just about every other metric investors have come to rely on.

Cramer admitted that the market is indeed oversold, but noted that in his analysis, the Dow Jones Industrial Average could fall another 15%, to just 5,320, before finally reaching a bottom.

He said investors need to stay lean and diversified, but noted that some stocks such as Wal-Mart ( WMT), a stock which he owns for his charitable trust, Action Alerts PLUS , along with Verizon ( VZ) and McDonald's ( MCD) are getting too cheap to pass up.

Cap and Trade Fallout

Cramer spoke with Duke Energy ( DUK) CEO Jim Rogers, to find out how Obama's cap-and-trade carbon initiatives would hurt the company's bottom line, and how the company plans to move to a greener future.

BankingMyWay

Rogers said that Duke Energy will not be put out of business by Obama's initiatives. He said the company has both a strong balance sheet and is actively working to help shape the legislation to have as little impact on consumers as possible. He said most states understand the importance of affordable and reliable power, as well as the importance of greener power.

Rogers said Duke is doing a lot to move towards a greener future, including investing in both wind and solar facilities, as well as a new proposed nuclear facility.

He said the company's two new coal-fired facilities, which are getting substantial negative attention in the press, not only use the latest clean coal technologies, but also replace older, less efficient plants, ultimately lowering the company's carbon footprint.

Rogers said Duke Energy will continue to evolve as technologies evolve. Cramer said he'd leave it up to his viewers whether that evolution is coming quickly enough. He said he still prefers Dominion Resources ( D) .

Taking on the Critics

Eighteen months after his infamous "They Know Nothing," rant on CNBC, Cramer took on his critics, declaring "it's time to get serious" about fixing the nation's economic issues.

Cramer said he finds himself in the middle of a firestorm lately, with critics like New York Times columnist Frank Rich and comedian Jon Stewart taking shots at his recommendations and advice.

But Cramer noted that he's been a vocal critic of the handling of the financial crisis by both the Bush administration and Obama administration. He reminded his critics of his outrage at Hank Paulson's handling of Lehman Brothers, and of Bush's assertion that "the fundamentals are sound."

Cramer said he doesn't blame Obama for the nation's problems, and actually agrees with much of Obama's agenda. But he contended "now's not the time" for it to be implemented. He said it's time to engage on the issues and stop the rhetoric. He said it's time to get control of the markets from the short sellers and offer up ideas.

Cramer extended an open invitation to the Obama administration to come on the show and debate the real issues of unemployment and house price depreciation and how best to stop the destruction of wealth in America.

SEC Needs Reinforcements

In his "Outrage of the Day" segment, Cramer posed this question: "Why is Las Vegas more regulated than Wall Street?" He said it's ridiculous that it's easier to get an investment advisors' license than a gambling license.

Cramer said for years Wall Street has been regulated by the honor system, but that needs to stop. He called on Obama to increase the head count at the SEC ten-fold if that's what it'll take to restore confidence in the markets.

Las Vegas, said Cramer, a place where you're supposed to lose money, is regulated to the hilt. But on Wall Street, where people are supposed to make money, its the wild West. "Investing shouldn't feel like gambling," said Cramer.

"If we have the manpower and will to regulate gambling, we ought to have the same for Wall Street," concluded Cramer.

Lightning Round

Cramer was bullish on Consolidated Edison ( ED), Verizon ( VZ) and Johnson & Johnson ( JNJ).

Cramer was bearish on Deere & Co ( DE), Atlas Energy Resources ( ATN) and Activision ( ATVI).

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

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

For "Mad Money" performance statistics and other links, check out Mad Money stats
At the time of publication, Cramer was long Johnson & Johnson.

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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