“The right way to go after the AIGs and Lehman Brothers of the world is by creating a task force to go after those who are falsely exposing their collateral,” Jim Cramer said on Monday’s “Stop Trading!” segment. He told viewers that if you try to value American International Group Inc’s (NYSE:AIG) collateral you will realize it over wrote. “The government can quickly address this by saying what matters is the collateral.” Cramer mentioned he would like to see a task force set up that is similar to what was put together for Enron. Connecticut’s Chris Dodd, the Senate Banking Committee Chairman announced on Monday his new financial-reform plan. The legislation attempts to cover everything from “too big to fail” and executive compensation to consumer protection and market speculation. Dodd said he is looking to revamp the U.S. financial rules by placing a consumer protection agency within the Federal Reserve and giving the central bank new powers over non-bank financial companies. Cramer said as comprehensive as Dodd’s plan may seem to be, it’s still a blown opportunity. He said he isn’t against having insurance for derivatives, but he is very much in favor of putting a package together where you’d have to put down more money, and you wouldn’t be able to do this cheap speculation. “My views aren’t radical and are much more in sync with changing the behavior on Wall Street than what Dodd is doing,” Cramer said. Shares of AIG jumped 5% since Dodd’s proposal was announced. Cramer said AIG’s stock can’t be shorted because the government owns so much of it. “The government is being really smart about AIG,” he said. “I respect what they are doing. They are trading this one well by not trading it.” 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!

Bullish
Oracle Corporation (NASDAQ:ORCL), L-3 Communications Holdings Inc. (NYSE:LLL), FirstEnergy Corp. (NYSE:FE), Bank of America Corporation (NYSE:BAC) and Nucor Corporation (NUE).
Bearish
Force Protection Inc. (NASDAQ:FRPT), Southern Company (NYSE:SO), CapitalSource Inc. (NYSE:CSE) and United States Steel Corporation (NYSE:X). 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 talked with callers to see if their portfolios were properly diversified. The first caller’s portfolio included the following stocks: Panera Bread Company (NASDAQ:PNRA), Kirkland’s Inc. (NASDAQ:KIRK), Apple Inc. (NASDAQ:AAPL), Symetra Financial Corporation (NYSE:SYA) and Weatherford International Ltd. (NYSE:WFT). Cramer said the portfolio is perfectly diversified. The second caller’s top stocks included these names: InterMune Inc. (NASDAQ:ITMN), Hecla Mining Company (NYSE:HL), Akamai Technologies Inc. (NASDAQ:AKAM), Toyota Motor Corporation (ADR)(NYSE:TM) and Ford Motor Company (NYSE:F). Cramer said this investors had two autos with Ford and Toyota, and recommended selling Toyota in favor of an industrial like Honeywell International Inc. (NYSE:HON) The third caller held long positions in the following stocks: Freeport McMoRan Copper & Gold Inc. (NYSE:FCX), The Mosaic Company (NYSE:MOS), The Coca-Cola Company (NYSE:KO), Texas Instruments Incorporated (NYSE:TXN) and Merck & Co., Inc. (NYSE:MRK). Cramer said this portfolio was rocking. The fourth caller’s top stocks were JPMorgan Chase & Co. (NYSE:JPM), Caterpillar Inc. (NYSE:CAT), The J. M. Smucker Company (NYSE:SJM), Dendreon Corporation (NASDAQ:DNDN) and The Travellers Companies Inc. (NYSE:TRV). Cramer also said this portfolio was diversified.   Join the fastest growing community of small cap investors at Stockhideout.com