Jim Cramer told fans of his “Mad Money” TV show Monday night that if they need cash in the next five years, a Federal Deposit Insurance Corp. (FDIC) insured savings account is the only way to guarantee your money will be safe. Cramer says that investors would be foolish to keep all of their money in stocks in such a volatile market. Keeping that in mind, Cramer outlined his plan for what the government should do next. He said first, the FDIC needs to stop seizing banks. Next, Cramer said the government needs to start putting  the $700 billion to work. He say they should buy home loans, which should help to end the onslaught of forecloses and then begin taking the toxic assets off the balance sheets of the banks. Finally, Cramer said the government should buy the credit default obligations (CDO’s) and hold them until their values increase. Cramer says if the government follows this plan it could avoid the Great Depression. Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

Jim Cramer told viewers of CNBC’s “Mad Money” Show Monday that cash is king and they should sell at least 20% of their portfolios and move their money into safe, FDIC insured savings accounts. He advised viewers to make sure they have enough cash on hand for things like buying a home, paying for college, buying a car or helping parents retire. Cramer told viewers that they shouldn’t rely on the markets to be there for them. He said until the possibility of another Great Depression os off the table, cash will be king. He says the market could see the October 2003 lows of Dow 7,700. Join the fastest growing community of small cap investors at Stockhideout.com

Cramer welcomed Zan Guerry, chairman and CEO of Chattem (CHTT) to the “Mad Money” show to discuss his company’s prospects. Guerry explained that Chattem’s products like Gold Bond, Icy Hot, and Act mouthwash are things people consume and use no matter what type of economic environment we are in. He pointed out that CHTT’s balance sheet is very strong and the company generates $5 a share in free cash flow. “That money will go toward acquisitions, Guerry said, and new products and the marketing campaigns needed to keep them flying off store shelves.” Guerry also said if the company sees any acquisition opportunities they will go after them. Cramer said Chattem has strong brands, falling raw costs and the company recently pushed through a 5.4% price increase.  He called the stock one of the ultimate saftey stocks. Chat and share ideas with the best small cap traders LIVE each day free at Stocknetworkonline.com

Bullish
Research In Motion (RIMM), Apple (AAPL), Visa (V) and Diageo (DEO).
Bearish
Heckmann (HEK), American Express (AXP) and Amedisys (AMED). Join the fastest growing community of small cap investors at Stockhideout.com

Word On The Street
Dylan Ratigan hosted CNBC’s “Fast Money” Monday night. He started the show with a discussion of the trading action intraday for the S&P 500 which saw one of the biggest one day drops ever in market history. He explained the market traded up off the lows on speculation that all central banks will act in together to stop the global meltdown. Ratigan mentioned breaking news that the Federal Reserve will now potentially look at getting into unsecured lending in the commercial paper market. He said the commercial paper market has dropped $95 billion in the last few weeks. CNBC’s Steve Liesman joined the traders to discuss the breaking news. He said the Fed has talked to market participants to take additional measures to support the unsecured commercial paper market. He says the new measures will most likely involve the Treasury and Fed in some combination. “It’s unclear if these measures will involve direct purchases, outright lending or access to the window,” he added. Liesman says the Fed has never ventured into this business until now. Karen Finerman says the Fed is stepping in to try and restore normalcy to the credit markets. “Anyone who has short-term paper is getting fearful that commercial paper markets might be closed to them,” she said. Jeff Macke says this isn’t a sign of confidence and it’s not a solution to the problem. “This is another incremental action and we aren’t doing these things smart,” he added.
What Now?
Ratigan asked the traders how the traded today’s dangerous stock market. Pete Najarian said he is holding onto the regional banks because they will have the “opportunity” going forward. He says the big banks will gobble up names like National City (NCC), Wachovia (WB) and Regions Financial (RF). “I would still buy these names through options are with buying the stocks outright,” he added. Guy Adami says there is value in names like Burlington Northern Santa Fe (BNI) and MasterCard (MA). He pointed out that both stocks traded up today. “Don’t race into these things but maybe there is some value here,” he said. Macke told viewers he bought BNI and McDonald’s (MCD) today. Najarian said look at U.S. Bancorp (USB), Wells Fargo (WFC), JPMorgan Chase (JPM) and Citigroup (C) which all had bullish reversals on the day. “In the long run they all tend to win,” he said.
Bank Of America Talk
Ratigan mentioned that Bank of America (BAC) traded down in after-hours trading after the bank missed on earnings and cut its dividend. “If your financials are so bad that you have to cut your dividend in the next 36 hours, than you probably shouldn’t be making massive acquisitions even at reduced prices,” Macke said. Finerman says it’s good that BAC cut their dividend because that capital can be used elsewhere.
Uncertain Times
Bill Fleckenstein, of Fleckenstein Capital, joined the traders to discuss the credit and housing crisis. He said it’s difficult to have a strong opinion about where we might be heading; given that there are so many moving parts that the government is throwing at the markets. “The economy was never as strong in the last up-cycle as everyone had thought because it was fueled by taking money out of your house and real estate oriented jobs,” he said. He says he doesn’t know how this plays out because the Fed’s balance sheet can’t be unlimited. “I don’t know what the law of unintended consequences has in store, but I am sure it’s something,” he added. Fleckenstein said he has cut his short positions back dramatically and has a lot of cash on hand. “I guarantee you the government will create another epic problem with what they’re doing,” he said. He told viewers he’s still short IBM (IBM) because all of their customers are in trouble. He also said he isn’t short Apple Computer (AAPL) or Cisco Systems (CSCO) but he wouldn’t risk his money on the long side with the stocks either.
Icahn Fights Back
Legendary investor Carl Icahn joined the traders to discuss the crazy action in the stock market today. Ichan said we have some major problems with the banks. “I don’t think we will see a loosening up of loans for a long time,” he said. Icahn says the real problem is the way we hold our managements accountable in this country. “It’s like asking the proverbial fox to guard the hen house,” he said. Ichan said he is starting a cause called the United Shareholders of America to fight in Washington to change the rules on how corporate management in America operates.
Technical Take With Worth
Carter Worth joined the traders to discuss the technical outlook for the stock market. Worth said be careful what you wish for in this market. He says we blew through the 2003 lows and now the market is trading at what should be some decent support. “We’re making the case here that we’re in the capitulation phase and after that we will get apathy,” he said.
Final Trade
Macke picked McDonald’s. Finerman said buy Diageo (DE). Adami likes Jefferies (JEF). Najarian recommended Biogen (BIIB). Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

Cramer spoke with Henry Termeer, chairman and CEO of Genzyme (GENZ). Termeer explained to Cramer that Genzyme focuses primarily on “orphan” drugs, or drugs for rare diseases (five out of every 10,000 people) that don’t have many available treatments. He said the market for orphan drugs is small but once a patient is on the treatments they often or on them for life and it creates a stable stream of income for GENZ. The company can make as much as $300,000 per pear per patient with some orphan drugs. He pointed out that insurance companies don’t complain about paying for these treatments because they work and are some of the only options available for the rare diseases. Cramer mentioned he likes GENZ for its drugs developments in bigger markets like cholesterol, MS and renal failure. The company also has three drugs up for FDA approval by the end of the year. “If you want to speculate like a pro, you speculate with fabulous companies that have been around that have really exciting drugs in the pipeline,” Cramer said. “Genzyme fits that bill.” Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

Jim Cramer recommended two companies that he considers as value stock plays. First up was Nucor (NUE), which has a 3.6% dividend yield. He mentioned the stock was downgraded on Friday by Merrill Lynch. Cramer said at $30 the stock is a “solid value play.” Cramer also likes Freeport McMoRan (FCX). He holds FCX in his charitable trust. Cramer says he is starting to buy shares of FCX for his trust and the stock yields 4.4%. He pointed out that FCX has plunged from $127 to $44, but he says the downside should be minimal going forward. Chat and share ideas with the best small cap traders LIVE each day free at Stocknetworkonline.com

Bullish
Starbucks (SBUX) and Waste Management (WMI).
Bearish
Computer Sciences (CSC), Boyd Gaming (BYD), Las Vegas Sands (LVS), Wynn Resorts (WYNN), Energy Recovery , EMCOR Group (EME), Green Mountain Coffee Roasters (GMCR), Vishay Intertechnology (VSH), Mosaic (MOS), Sovereign Bancorp (SOV) and Zimmer Holdings (ZMH). Join the fastest growing community of small cap investors at Stockhideout.com