Cramer's 'Mad Money' Recap: March 30

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Jim Cramer told the viewers of his "Mad Money" TV show Monday that he's struggling to figure out exactly what changed over the weekend to cause today's big market selloff.

He said while there was some bad news today, the risk model still points to a bull market.

Cramer said none of today's bad news should've shocked investors. It should've come as no surprise that banks still need more money, or that General Motors ( GM) CEO Rick Wagoner isn't the right man for the job, or that oil is pulling back from its recent highs, he said.

And while there was indeed some bad news in the insurance sector, with Lincoln National ( LNC) sending the whole group lower, Cramer said there's nothing in the insurance patch that a statement from the Fed assuring people that their policies are safe.

Cramer said the markets are likely to pull back another 3% to 5% before the buyers return. But even if they pulled back 10%, he said, it would still be a great time to buy.

Cramer said it's still too dicey for big money managers to keep their money on the sidelines, and quite frankly, things just aren't as bad as they were the last time the markets were at these levels. He told investors to keep their money ready, and to buy on any weakness.

"If we don't move our money from the sidelines," he said, "we risk getting run over by the bulls."

Tainted by TARP

"We trust very few bank stocks," Cramer told viewers. That's why when he wanted to know how things were going at International Bancshares ( IBOC), he went right to the source, Dennis Nixon, IBC's president, chairman and CEO.


Nixon said that IBC did take government money in the second round of TARP financing, because he felt the program at the time was "an endorsement of strength at our institution," noting that the program seemed like "a good deal" at the time.

However since taking the money, Nixon said he's concerned with being demonized by those in Congress. He said IBC would much prefer to separate from the program rather than be forced to lower its dividend.

Nixon described the business at IBC as grassroots, saying the company mostly originates loans it passes through to Fannie Mae ( FNM) and Freddie Mac ( FRE).

He said the company remains committed to credit quality and hasn't seen the softness in their markets as others have seen in the hardest hit areas. Nixon said he even sees some firming in the softest of housing markets.

Cramer said Nixon told a good story and he likes what he heard, but added that with banks stocks being as dicey as they are, viewers will have to judge for themselves.

False Comparison

While the doomsayers may have returned after today's market decline, Cramer reminded viewers that just because people say we're following in the footsteps of the Great Depression, doesn't make it true.

Cramer said a decline like today's was bound to happen after such a large market rally over the last two weeks. He said anyone who compares today's markets to that of the Great Depression is just wrong. There are many stark differences, he said, between the markets of 1932 and the markets of today.

Most importantly, said Cramer, Obama is not Hoover. He said Obama, unlike Hoover, is focused on spending money to get the economy back on track. Strong action is necessary and Obama is delivering, he said, adding there are other differences as well.

Cramer said the Federal Reserve is doing the exact opposite of what it did in 1932. Ben Bernanke is a student of the Great Depression, he said, and will not make those mistakes again. In 1932, there were also wholesale bank failures with people losing everything, while today we have the FDIC making sure that no depositor is left in the cold.

There are also social programs, said Cramer, like Social Security and Medicare, which act as automatic stabilizers for the economy. And soon, the safeguards against naked shortselling, along with the uptick rule, should be back in place helping to make the markets safe for investors.

With all of these differences, Cramer said there is little chance of repeating 1932. "The world today is different," he said.

Mad Mail

Cramer told a viewer that he still feels gold should be a part of every investor's portfolio. He said he's still a fan of both Agnico-Eagle Mines ( AEM) and Eldorado Gold ( EGO), as well as the SPDR Gold Shares ( GLD) below $90 a share.

Lightning Round

Cramer was bullish on Lululemon Athletica ( LULU), KBR Inc ( KBR), Altria ( MO), Copart ( CPRT)and Monster Worldwide ( MWW).

He was bearish on Cemex ( CX), Philip Morris International ( PM), Arch Coal ( ACI), Ritchie Bros. Auctioneers ( RBA), Breitburn Energy Partners ( BBEP), MEMC Electronics ( WFR), AutoNation ( AN)and Comcast ( CMCSA).

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At the time of publication, Cramer was not long on any stock.

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."

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