Cramer Highlights

• Monday’s market plunge is “a formal declaration of recession.
• This decline was not the same as all the rest.
• “This time, the federal government is starting to get things right.”
• Recent developments are working to stabilize the markets.
• Mortgage markets are stabilizing after the federal government moved to buy debt of Fannie Mae and Freddie Mac and started buying mortgages from struggling firms.
• Govenrment has provided loan guarantees and has invested in Citigroup.
• The TARP program is now in full swing with over $4 trillion in loan guarantees in place.
• Government is a positive force in the markets.
• “Profit taking is to be expected.”
• Today’s selloff should come as no surprise.
• The selloff is an opportunity to buy the recession-resistant stocks and the accidental high yielders at great prices.
• “Not all infrastructure stocks are created equal,”
• With President-elect Barack Obama’s infrastructure stimulus package, there are some clear winners and losers.
• Obama’s plan calls for major investment in the country’s roads and bridges.
• Stocks like Chicago Bridge & Iron (CBI) sound like the natural choice.
• But 55% of CBI’s revenues come from the liquified natural gas industry and not from roads.
• Investors need to steer clear of all infrastructure stocks with an energy focus.
• Those stocks need higher energy prices and tons of credit to finance their projects to succeed.
• Shaw Group (SGR) and Cramer favorite Foster Wheeler (FWLT) should not be bought solely on the Obama news.
• Obama plan winners include asphalt and concrete makers like Martin Marinetta Materials and Vulcan Materials.
• Also Caterpillar (CAT) and AECOM (ACM) are good.
• All of these names have had huge runs and need to come down before they can be bought.
• Wait for all of the good names to pull back before buying in.
• Cramer sounded off against Treasury Secretary Hank Paulson and Federal Reserve chairman Ben Bernanke.
• Both told the American public all year long that “the fundamentals are sound” when in reality a severe recession was clearly taking hold.
• Cramer said, “I haven’t seen this level of arrogance and ignorance in a long time”.
• He called for Bernanke’s resignation on Jan. 20, when Obama takes office.

Here’s the list of stocks from Cramer’s Mad Money Show for Monday, December 01, 2008.

Note: Dow stocks mentioned tonight: None tonight!

Thumbs up for these stocks………….
APC – Anadarko Petroleum $37.60
GENZ – Genzyme $57.70
GS* – Goldman Sachs $65.76 (down 16.75% today)
X – United States Steel $25.64 (down 15.66% today)

Thumbs down for these stocks………..
CHK – Chesapeake Energy $15.00 (down -12.69% today)
EBS – Emergent BioSolutions $22.37
OSK – Oshkosh Truck $5.82 (down -16.86% today)

*A CHARITABLE TRUST STOCK.