Jim Cramer's Real Money Radio Recap, Aug. 31

Recap of Jim Cramer's radio show on Thursday August 31 Click on a stock ticker for more analysis:

Thursday's program was a re-broadcast of excerpts of Real Money Radio episodes which first aired on August 24 and 28.

Getting Defensive :Johnson & Johnson (JNJ), Pfizer (PFE), Kellogg (K), Merck (MRK), Procter & Gamble (PG), and Coca-Cola (KO), Alcan (AL) and Honeywell (HON) - Although he admitted that he "sounds like a broken record," Cramer once again expressed his enthusiasm for defensive stocks in the current market. He gave the example of JNJ's comeback to nearly $70 after a dip to $64 over initial criticism for purchasing Pfizer's generic division. Cramer predicts that Kellogg will jump from $49 to $55, and that PG and KO are also going up. In spite of losing verdicts on Vioxx, MRK is higher than it was before the lawsuits. Other sectors, especially housing, are suffering, and Cramer's aluminum stock, Alcan, has not budged from $45 in spite of a stellar quarter. In aerospace, Honeywell also has not moved in spite of its success. Cramer predicts that these sectors may improve in three more months.

Wall Street Jobs - Cramer discusses the pros and cons of various jobs on Wall Street, and says that the best position is that of a full-time trader, who brings the buyer and seller together, and can make a lot of money without working ridiculous hours. Brokers have the second-best job, according to Cramer, who confesses to wining and dining clients when he was a broker. Analysts, who convince private companies to become public, have to be better than they used to be, since New York State Attorney, Eliot Spitzer, tackled corruption in this area. Floor traders used to "clip" clients and take some extra money, but with wiretaps, that crooked tactic is a thing of the past. Working in mergers and acquisitions can mean big money, but it requires a tremendous amount of hours. "When everybody else is having a great family life, you are working," Cramer said. "You're sitting in that linoleum cafeteria and trying to drink a little scotch in between making deals on the weekends."

CEO Criteria: 3M (MMM) and Boeing (BA) - "A CEO is like a politician," Cramer said. "He has to be able to talk the talk and make you believe in the company." He adds that a good CEO is 50% operator and 50% promoter. 3M(MMM)'s CEO, George Buckley, is a bad operator, according to Cramer, and James McNerney, the current CE of Boeing (BA) is a good operator.

Any Questions?- Taking listeners questions, Cramer responded that a crash like 1929 is concievable, but such a sudden fall would more likely resemble the crash of 1987 or take the form of a multi-day decline. A bad stock, he said, will not go up even with good news, goes nowhere when everything else is going up, and gets hammered easily because it has no buyback protection. When asked what was the largest amount he made in one day, Cramer responded that he once made $18 million, but at the expense of family harmony, since he cancelled a trip to Mexico.

More: Cramer's latest stock picks, including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.

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