Cramer's 'Mad Money' Recap: Obama's Misguided Agenda (Final)

Click here for an archive of Jim Cramer's Mad Money recaps. Click here to get Jim Cramer's Mad Money Post Game video exclusively on

Without more jobs, President Obama's agenda will "slowly squeeze the life out of this market," Jim Cramer told the viewers of his "Mad Money" TV show Wednesday.

He attributed the market's recent slide and continued sideways trend to a shift in opinion among investors on just how well Obama is handling the economy.

Cramer accused Obama of misreading the economy, saying that his anti-business policies and failed stimulus are not creating jobs and are instead allowing the U.S. to fall behind the recovery efforts of China and France.

Cramer Clearing House All things Cramer Mad Money Recap Trade With Cramer Free

Cramer said while he remains an Obama supporter, he feels that job creation needs to be the president's only focus. He said programs such as cap and trade, reducing carbon emissions and a repeal of the Bush tax cuts all need to wait.

He said the Justice Department probe into AT&T ( T) and Verizon ( VZ) just proves that the administration has lost focus.

Cramer said this economy, and the stock market, both hinge on the creation of more jobs. He said Obama must tackle unemployment first, or both will suffer a slow and painful death.

A Green Trade

Investors looking to cash in from Obama's cap-and-trade energy initiatives should look no further than Baldor Electric ( BEZ), said Cramer.

This producer of high efficiency electric motors is the perfect way to offset the added cost cap and trade will add to consumers and businesses alike, he said.

Cramer last recommended Baldor on June 17, 2008, a call which he now said was a mistake. The stock, which traded at $36 then, slid to $10 a share before rebounding to $21 today.

Cramer said he owns this mistake, but feels that Baldor is now blessed by Congress with the new cap-and-trade legislation.

Cramer said the new initiative designed to cut carbon emissions will hurt businesses overall, but will help Baldor, who says that 75% of its motors will have bolstered sales from the new regulations.

The company also has a 3.2% dividend yield, which Cramer said will pay investors to wait for cap and trade to take effect.

Cramer said he'd be leery of Baldor if cap and trade doesn't pass the Senate. The company recently lowered its guidance for the second half of 2009, but that decline is already priced into the stock, said Cramer. He predicted that cap and trade will pass and that Baldor will deliver an upside surprise in 2010.

Outrage of the Day

Cramer once again sounded off against the oil futures markets, and their continued efforts to manipulate prices. He said the opposition to reform must be stopped.

Cramer threw his support behind Gary Gensler, new head of the Commodities Futures Trading Commission, but admitted that Gensler's efforts to evoke change are likely to fail. He said the futures industries are simply too big and too powerful to stopped.

Cramer said the futures industry will use all of the tools at their disposal, including lobbying Congress, tapping into academia and using the media to bolster their position that the futures markets are too big to be manipulated and that futures markets offer increased liquidity.

But Cramer said these notions are simply wrong, and that oil, in particular, is too important to national and economic security to continue "business as usual."

Am I Diversified?

Cramer talked with callers about their portfolios. The first caller's portfolio included Apple ( AAPL), St Jude Medical ( STJ), Goldman Sachs ( GS), Transocean ( RIG) and Burlington Northern ( BNI).

Cramer said this portfolio had picture perfect diversification.

The second caller's top holdings included Yum! Brands ( YUM), Honeywell ( HON), Big Lots ( BIG), Hewlett-Packard ( HPQ) and BB&T ( BBT).

Cramer said he's not a fan of Big Lots, but is a fan of this diversified portfolio.

Lightning Round

Cramer was bullish on Allscripts-Misys ( MDRX) and Universal ( UVV).

He was bearish on SXC Health Solutions ( SXCI), JA Solar ( JASO), Exxon Mobil ( XOM) and Tekelec ( TKLC).

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

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.

For more of Cramer's insights during the Lightning Round, click here .

At the time of publication, Cramer was long Goldman Sachs, Yum! Brands, Honeywell, Hewlett-Packard. ,

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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, 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, 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 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, 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.

More from Jim Cramer

Jim Cramer: Aramark Is a Great Company but It's Levered to Baseball

Jim Cramer: Aramark Is a Great Company but It's Levered to Baseball

Jim Cramer on the Markets: 2:45pm Is a Make or Break Level

Jim Cramer on the Markets: 2:45pm Is a Make or Break Level

Video: Jim Cramer on How to Navigate the Stock Market Amid Tariff Worries

Video: Jim Cramer on How to Navigate the Stock Market Amid Tariff Worries

Here Is Your Market Playbook During This Tariff-Driven Selloff

Here Is Your Market Playbook During This Tariff-Driven Selloff

Jim Cramer: 4 Stocks Could Get Throttled By a 'Knock Down Drag Out' With China

Jim Cramer: 4 Stocks Could Get Throttled By a 'Knock Down Drag Out' With China