Cramer said he likes all the chatter about a possible acquisition of Countrywide by Bank of America (BAC). He hopes investors picked up some of the preferred shares of Countrywide on his earlier recommendations.

Washington Mutual (WM). Cramer feels the company could be a takeover target and is now turning positive on WaMu.

As for Citigroup (C), Cramer says it will make a lot of money if the Federal Reserve continues to cut rates. Citigroup is a stock that he owns for his Action Alerts PLUS portfolio.

Cramer is also warming up to Bear Stearns (BSC), but still prefers Merrill Lynch (MER).

Cramer is also warming up to Bear Stearns (BSC), but still prefers Merrill Lynch (MER).

In the homebuilding space, Cramer now likes KB Homes (KBH) and Centex Homes (CTX), but feels Beazer (BZH) is "still too troubled."

In the homebuilding space, Cramer now likes KB Homes (KBH) and Centex Homes (CTX), but feels Beazer (BZH) is "still too troubled."

In the homebuilding space, Cramer now likes KB Homes (KBH) and Centex Homes (CTX), but feels Beazer (BZH) is "still too troubled."