Here's what Jim Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Wednesday evening:

DuPont (DD - Cramer's Take - Stockpickr): "Lots of new patents over there. Great dividend. DuPont is a great turnaround. I'm trying to get more people into that one."

Bristol-Myers Squibb (BMY - Cramer's Take - Stockpickr): "Bristol is an opportunity. This company is worth $28 to $30, and you get paid to wait with that great dividend yield."

ingli Green Energy (YGE - Cramer's Take - Stockpickr): "(FSLR) is at a 52-week high. They're the only thin film maker and that's your play."

Nextwave Wireless (WAVE - Cramer's Take - Stockpickr): "Skip Nextwave, and Clearwire (CLWR - Cramer's Take - Stockpickr) too. Those stocks are poisonous."

RAM Energy Resources (RAME - Cramer's Take - Stockpickr): "I've been looking at these smaller companies and I like them but I'd rather see you in Apache (APA - Cramer's Take - Stockpickr) or Devon Energy (DVN - Cramer's Take - Stockpickr)"

Electronic Data Systems (EDS - Cramer's Take - Stockpickr): "No, you're a seller of that one. This may not be that great a deal. Don't be greedy. Move on."

Hershey Foods (HSY - Cramer's Take - Stockpickr): "This is a difficult one. I can't recommend it on takeover rumors when the fundamentals aren't that good. Why not look into HJ Heinz (HNZ - Cramer's Take - Stockpickr)"

Caterpillar (CAT - Cramer's Take - Stockpickr): "I like CAT, I think it's terrific. I want to buy that one. I think you're in great shape."

Goldman Sachs (GS - Cramer's Take - Stockpickr): "Their CEO has consistently made us money. I am a bull on him and the company. I like it and I think you should stick with that one."

*For all you home-gamers, a 'mon-back opportunity means Cramer would back up the figurative truck and load up on a stock.

Want more Cramer? Check out Jim's rules and commandments for investing by clicking here.

’Mad Money Lightning Round’: Pick Up Apple on the Pullback

Here’s what Jim Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Tuesday evening:

Apple (AAPL - Cramer’s Take - Stockpickr): "I am really liking Apple for its strong Mac sales and also for the iPhone. Let it come down 8 to 10 points and pull the trigger."

Hansen Natural (HANS - Cramer’s Take - Stockpickr): "No, no, no. ... That’s last year. It’s had its move."

Lululemon Athletica (LULU - Cramer’s Take - Stockpickr): "No, that story has been played out. The stock is overvalued. We said sell that one at $50."

Agnico-Eagle Mines (AEM - Cramer’s Take - Stockpickr): "Gold’s going to $1600. This one, along with Yamana Gold (AUY - Cramer’s Take - Stockpickr), has great growth ahead of it. "

Titanium Metals (TIE - Cramer’s Take - Stockpickr): "No, no, no. ... I think titanium is weak. I don’t want to go there."

CapitalSource (CSE - Cramer’s Take - Stockpickr): "I think this one is too risky. I don’t have any conviction here. I don’t want to touch it. "

Washington Mutual (WM - Cramer’s Take - Stockpickr): "They have a great deposit base, but a horrible management ... and they’re not getting any better over there.

Why not go with Goldman Sachs (GS - Cramer’s Take - Stockpickr) or JPMorgan Chase (JPM - Cramer’s Take - Stockpickr)?"

Chevron (CVX - Cramer’s Take - Stockpickr): "Chevron’s too cheap. Everyone’s been an oil bear, but I like it. I also like ConocoPhillips (COP - Cramer’s Take - Stockpickr) and BP (BP - Cramer’s Take - Stockpickr)."

*For all you home-gamers, a ’mon-back opportunity means Cramer would back up the figurative truck and load up on a stock.

Want more Cramer? Check out Jim’s rules and commandments for investing by clicking here.

Cramer’s ’Mad Money’ Recap: The Bear Stearns Fiasco

"The financials of the financial stocks cannot be trusted," Jim Cramer warned viewers of his "Mad Money" TV show Monday.

Cramer made his comments in the aftermath of what he described as the "sweet-heart" deal JPMorgan(JPM - Cramer’s Take - Stockpickr) got from the Fed to buy Bear Stearns (BSC - Cramer’s Take - Stockpickr).

The Fed’s actions led Cramer to urge investors to stay clear of the all of the financial stocks, with the lone exception of JPMorgan.

In his analysis of the Bear deal, Cramer said those with money invested at Bear are not in jeopardy of losing their accounts while those who invested in the company will likely see their investments vanish as the common stock drifts towards zero.

"You can’t count on takeovers anymore," Cramer said, "there will only be take-unders from here on out."

According to Cramer, any financial company that has lent a lot of money to hedge funds is in jeopardy because its book value will fall as a result of the fire sale of Bear whose book value dramatically fell over the weekend to a stunning $2 a share.

"Until we hear otherwise," Cramer said, "consider all of the banks’ book values to be lies." "These companies will likely be saved, but the pattern will be to have their equities wiped out."

On a side note, Cramer remained bullish on the coming IPO of Visa, stating that with the financials in such turmoil, the Visa IPO will likely be priced below its true value, offering investors a rare opportunity to post a gain.

"Visa is a financial with absolutely no credit risk," he said.

In Apple I Trust

"After this selloff," Cramer told viewers, "investors should pick amongst the rubble for the real banks."

The real banks, he said, are not banks at all but rather recession-proof companies that are flush with cash.

Cramer recommended companies in the "real" economy such as those that manufacture products. These companies, which all benefit from a weak dollar, include Procter & Gamble (PG - Cramer’s Take - Stockpickr), Colgate (CL - Cramer’s Take - Stockpickr) and Pepsi (PEP - Cramer’s Take - Stockpickr).

Cramer also recommended strong companies in the tech sector, such as Cisco (CSCO - Cramer’s Take - Stockpickr), Intel (INTC - Cramer’s Take - Stockpickr) and Apple (AAPL - Cramer’s Take - Stockpickr).

"All of these companies also have strong balance sheets," said Cramer.

He also reiterated buys in the agriculture sector, such as Caterpillar (CAT - Cramer’s Take - Stockpickr). And he also likes 3M (MMM - Cramer’s Take - Stockpickr), Honeywell (HON - Cramer’s Take - Stockpickr) and ExxonMobil (XOM - Cramer’s Take - Stockpickr).

Going Strong

Cramer welcomed Michael Ward, President, chairman and CEO of CSX Corp (CSX - Cramer’s Take - Stockpickr), back to the show to discuss the company’s outlook. Earlier today, CSX raised its guidance for 2008, beating Wall Street’s consensus estimates by 7 cents to 10 cents a share.

Ward explained that his company is performing well, shipping a mixed bag of products ranging from coal, grain and fertilizer to metals, chemicals and ethanol.

He also noted that competing trucking companies are being challenged by both higher fuel costs and a shortage of labor that is giving railroads the upper hand in the current economy.

A long-time supporter of CSX, Cramer first recommended it on Nov. 16, 2007, at $43 a share, then again on Jan. 24 at $46 a share. Both of those recommendations are up, by 18.6% and 9.6%, respectively.

Cramer recommended the stock again tonight, citing both the company’s strong performance and its $2.4 billion stock repurchase program as strong catalysts in its favor.

Doing Well Even in Real Estate

Cramer also welcomed Peter McCausland, chairman and CEO of Airgas (ARG - Cramer’s Take - Stockpickr), to the show.

McCausland said his company continues to do well and sees no signs of recession. He said the company is doing well even in the residential construction market, which, while down from its highs, is mirroring levels seen in 2006.

Cramer touted Airgas as just another example of his "two-economy" thesis, stating that here was another example of a strong company with a safe dividend that’s buying back stock.

He continued to recommend the stock as a member of the "real" economy.

Lightning Round

In the Lightning Round, Cramer was bullish on Yamana Gold (AUY - Cramer’s Take - Stockpickr), ConocoPhillips (COP - Cramer’s Take - Stockpickr), Andersons (ANDE - Cramer’s Take - Stockpickr), Medco Health (MHS - Cramer’s Take - Stockpickr), CVS Caremark (CVS - Cramer’s Take - Stockpickr) and Frontline (FRO - Cramer’s Take - Stockpickr).

Cramer was bearish on Interactive Brokers (IBKR - Cramer’s Take - Stockpickr), Amerisourcebergen (ABC - Cramer’s Take - Stockpickr), Baidu.com (BIDU - Cramer’s Take - Stockpickr), Scientific Games (SGMS - Cramer’s Take - Stockpickr) and NYSE Group (NYX - Cramer’s Take - Stockpickr).

Want more Cramer? Check out Jim’s rules and commandments for investing by clicking here.

For more of Cramer’s insights during the Lightning Round, click here.

"Big Pharma is cheap, but for all the wrong reasons," Jim Cramer told viewers during a special third-anniversary edition of his "Mad Money" TV show Friday.

In front of a rousing studio audience, Cramer called the drug stocks one of the worst-performing sectors out there.

Cramer blamed much of the sector’s problems on fears that the Democrats will take the White House in November. But he said drugs would not be adversely affected if that were to happen. Instead, he said, investors should be more worried about the impact on oil and energy stocks if the Democrats win.

Cramer cited both Schering-Plough (SGP - Cramer’s Take - Stockpickr), a stock he owns for his charitable trust, Action Alerts PLUS, and Merck (MRK - Cramer’s Take - Stockpickr) as his favorites in the sector even though both stocks have been down 28% year-to-date.

He called Schering "one of the cheapest drug stocks out there based on its growth rate," and he touted the company’s Zetia and Vytorin drugs as blockbusters in the making. As for Merck, Cramer liked both the company’s cholesterol drugs and the promise of its HPV vaccine.

Cramer then took questions from the audience and told a viewer that while he likes Teva (TEVA - Cramer’s Take - Stockpickr), he will never recommend the generic drug makers because it’s just too easy for competitors to enter the market.

Cashing in on Direct Selling

Repeating his mantra "There is always a bull market somewhere," he told viewers that direct selling is one of those markets and Tupperware (TUP - Cramer’s Take - Stockpickr) is one of the best direct-sales companies.

Direct sellers do well as the economy slows, and Cramer said he likes Tupperware for both its 2.5% yield and the fact that 85% of the company’s business is overseas.

He said Herbalife (HLF - Cramer’s Take - Stockpickr) would be his second choice in this sector. Since Cramer interviewed Herbalife’s CEO on Nov. 7, the company’s stock has risen a quick $10 a share. While this makes Herbalife too high to recommend, Cramer still likes the stock on any weakness.

Finally, Cramer noted the once-hated Avon (AVP - Cramer’s Take - Stockpickr) as another strong player in the direct-selling market. He said that about 75% of Avon’s sales come from overseas, and the company has exposure in the bull markets in Brazil and China. He recommended buying half a position in Avon now and waiting for any weakness to purchase the other half.

Am I Nuts?

Cramer played "Am I Nuts" with audience members to help them sort out their stock situations.

The first audience member asked about a position in Marta Stewart Omnimedia (MSO - Cramer’s Take - Stockpickr). Cramer, while fond of Martha Stewart personally, recommended selling her company’s stock.

The second audience member asked about her large position in alternative energy stocks. Cramer recommended against loading up a portfolio with any one sector and encouraged the viewer to diversify.

Questions from the audience

Cramer opened up the floor and took more questions from his live studio audience. When one viewer asked about investing for his family, Cramer advised determining each member’s risk tolerance before picking stocks for their portfolios.

A second audience member asked Cramer what criteria he uses to determine when the market bottoms. Cramer said the bottom will only come after a major bank or financial institution fails.

The next audience member, from Australia, asked about Bear Stearns (BSC - Cramer’s Take - Stockpickr) and when it would be safe to invest in the financial stocks. Cramer advised against the financials until the Federal Reserve takes more aggressive action to solve the housing crisis.

Lightning Round

Cramer was bullish on Wal-Mart (WMT - Cramer’s Take - Stockpickr), Apache (APA - Cramer’s Take - Stockpickr), Anadarko Petroleum (APC - Cramer’s Take - Stockpickr), Chesapeake Energy (CHK - Cramer’s Take - Stockpickr), Procter & Gamble (PG - Cramer’s Take - Stockpickr), Core Labs (CLB - Cramer’s Take - Stockpickr), Allergan (AGN - Cramer’s Take - Stockpickr) and Philippine Long Distance (PHI - Cramer’s Take - Stockpickr).

Cramer was bearish on Peabody Energy (BTU - Cramer’s Take - Stockpickr) and United Parcel Service (UPS - Cramer’s Take - Stockpickr).

Want more Cramer? Check out Jim’s rules and commandments for investing by clicking here.

For more of Cramer’s insights during the Lightning Round, click here.

Cramer: Banks Could Go the Way of the Home Lenders

Let me give you a thought. A year ago, I posted a list of the Mortgage Dirty Dozen on this site and I predicted the unthinkable: that they would all be obliterated in the coming year.

Let's see how 10 of them have done from one year ago:

• IndyMac(IMB - Cramer's Take - Stockpickr): $29 then; $4 now.
• Centerline(CHC - Cramer's Take - Stockpickr): $19 then; $4 now.
• Friedman Billings(FBR - Cramer's Take - Stockpickr): $5 then; $2 now.
• Fremont General(FMT - Cramer's Take - Stockpickr): $7.40 then; now, pretty much nothing.
• Redwood Trust(RWT - Cramer's Take - Stockpickr): $54 then; $30.75 now (good one!).
• Newcastle Investment(NCT - Cramer's Take - Stockpickr): $27 then; $8 now.
• Gramercy(GKK - Cramer's Take - Stockpickr): $30 then; $16 now.
• RAIT Financial(RAS - Cramer's Take - Stockpickr): $29 then; $5 now. Accredited-purchased-incredible, and well done!
• Thornburg(TMA - Cramer's Take - Stockpickr): $23 then; $1.54 now.
• CapitalSource(CSE - Cramer's Take - Stockpickr): $24 then, $14 now.

I think the declines aren't over. I think there is more downside. Or you could consider the Gang of Four, the four horsemen of the financial apocalypse:

• Ambac(ABK - Cramer's Take - Stockpickr): $90 then; $7 now.
• MBIA(MBI - Cramer's Take - Stockpickr): $67 then: $11 now.
• PMI(PMI - Cramer's Take - Stockpickr): $45 Then; $5 now.
• MGIC(MTG - Cramer's Take - Stockpickr): $61 then; $13 now.

Which brings me to the banks. I am beginning to believe that we are going to see some major bank failures, and we have to consider similar declines from the following stocks: Washington Mutual(WM - Cramer's Take - Stockpickr), Wachovia Bank(WB - Cramer's Take - Stockpickr), Capital One(COF - Cramer's Take - Stockpickr), National City(NCC - Cramer's Take - Stockpickr), Huntington Bancshares(HBAN - Cramer's Take - Stockpickr), Downey Financial(DSL - Cramer's Take - Stockpickr), BankUnited Financial(BKUNA - Cramer's Take - Stockpickr) and Corus(CORS - Cramer's Take - Stockpickr).

I think every one of these could fall like that dozen, which, by the way, were already way down and didn't seem like they could go lower!

Now, I know this is an unforgivable thought that any of these banks can just disappear, but it can no longer be taken off the table. The lower rates alone aren't going to save these guys. All of these banks need a multipart fix:

1. Cut rates to levels through the two-year so banks have a chance to borrow short and invest a little longer to make some money.
2. Give the Fed the authority to buy a ton of AAA paper that everyone says is worth a lot but is logjamming the desks of every major bank in the country. The Fed can make money on this stuff. (I think it has it already, but some might think it needs authority from Congress.)
3. Have the Federal Housing Administration guarantee mortgages once they have been refinanced, which they can be at the shorter rates. (I don't like the principal reduction stuff -- way too confiscatory.
4. Treasury takes warrants from the monolines in return for the vast majority of the equity stakes.
5. The Treasury makes the implicit guarantees for agencies more than just implicit.

Without these changes, I simply have to believe the banks are going the way of the monolines and the REITs.

Maybe it would cause the Fed to recognize the gravity of the situation.

Maybe it would even motivate the Treasury to be proactive beyond instilling a nice volunteering system that, of course, is totally meaningless.

Without it, though, I believe that as outrageous as it might have sounded last year with the REITS, it is no more outrageous now to suggest that these banks could have a similar path or go to zero.

It is that bad out there.

At the time of publication, Cramer had no positions in stocks mentioned.

Cramer's 'Mad Money' Recap: Stick With High-Yielding Stocks

03/05/08 - 07:47 PM EST

"Cash is no longer king," Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

With every Federal Reserve interest rate cut, cash becomes a less and less attractive place to invest in, Cramer said. "You'd be insane to keep your money in CDs or savings accounts at these rates."

The new "king" of investments, according to Cramer, is high dividend-yielding stocks.

His favorite in this group is electric utility ConEd (ED - Cramer's Take - Stockpickr). ConEd, he says, "is the single best electric utility in the nation." He noted that ConEd has a 5.7% yield and just raised its dividend again in January.

Cramer said high-dividend paying stocks are appealing for several reasons. First, their dividends yield more than the current rates for cash-based investments. Second, the tax rate on dividends is significantly less than the capital gains tax rate paid on interest income. And third, investors get the upside potential of the stock, something CDs, money markets and savings accounts can't offer.

In the case of ConEd, the company just recently reported 76 cents a share of earnings, beating estimates by a massive 15 cents a share. Cramer says ConEd is also attractive because it's not economically sensitive and is often considered a "recession-proof" company that investors flock to when the economy turns sour.

Cramer once again recommended buying gold, oil and agriculture stocks, but he said for a safe, recession-proof stock, investors also need to consider ConEd.

A Stock With a Big Dividend

Cramer highlighted US Energy Trusts as a second high dividend-yielding investment idea. Energy trusts, he pointed out, do not receive a lot of attention on Wall Street, but they pay out huge dividends, mainly because they don't pay taxes on their earnings.

Cramer's short list of energy trusts included Permian Basin Royalty Trust (PBT - Cramer's Take - Stockpickr), BP Prudhoe Bay (BPT - Cramer's Take - Stockpickr), San Juan Basin (SJT - Cramer's Take - Stockpickr) and Hugoton Royalty Trust (HGT - Cramer's Take - Stockpickr).

Of the four, Cramer ranks Permian Basin Trust as the best.

Cramer said he favored Permian Basin for several reasons. First he pointed out that the trust is diversified, with 59% of its operation in oil and the other 31% in natural gas.

Second, Permian Basin operates mainly in Texas, a friendly place to drill for oil and gas. Finally, Cramer said Permian Basin has nine years of reserves left in the trust. "This makes (it) a safe place to invest for at least the next three to four years."

Cramer said Permian Basin is also predictable. Even if oil prices go lower, he predicts the trust's dividend will still be "impressive." Permian Basin currently yields just over 12%.

An Outrageous Pay Package

Cramer expressed outrage at Washington Mutual's (WM - Cramer's Take - Stockpickr) Chairman and CEO Kerry Killinger and 100 other executives who were given attractive compensation targets by the company's board of directors.

According to the Wall Street Journal, the board voted to shield the compensation targets from some costs from mortgage losses and foreclosures when bonuses are calculated later this year. Cramer was disgusted with the action because it comes at a time when the company teeters on the brink of insolvency.

Cramer called the board's actions "shameful" and added the entire board to his "Wall of Shame."

"How can you people live with yourselves," he asked, while noting that the proposed bonuses for Killinger will range between 365% and 548% of the CEO's base salary for the year.

Cramer urged Washington Mutual shareholders to hold the company's board accountable for their actions.

Mad Mail

In this segment, Cramer told a viewer that he wouldn't recommend buying Seagate (STX - Cramer's Take - Stockpickr), saying he's not a fan of any technology stock.

Am I Diversified?

The first caller's portfolio included Barrick Gold (ABX - Cramer's Take - Stockpickr) Humana (HUM - Cramer's Take - Stockpickr) McDonald's (MCD - Cramer's Take - Stockpickr) Altria (MO - Cramer's Take - Stockpickr) and Honeywell (HON - Cramer's Take - Stockpickr).

Cramer, who owns both McDonald's and Altria for his charitable trust, Action Alerts PLUS, blessed this portfolio as diversified.

The second caller had American Commercial Lines (ACLI - Cramer's Take - Stockpickr), Steel Dynamics (STLD - Cramer's Take - Stockpickr), Google (GOOG - Cramer's Take - Stockpickr), Apple (AAPL - Cramer's Take - Stockpickr) and Ebay (EBAY - Cramer's Take - Stockpickr) in his portfolio.

Cramer identified "three of a kind" with Apple, Google and Ebay and recommended adding a defense, healthcare and tobacco stock to the list.

Lightning Round

In the Lightning Round, Cramer was bullish on Oracle (ORCL - Cramer's Take - Stockpickr), Salesforce.com (CRM - Cramer's Take - Stockpickr), Caterpillar (CAT - Cramer's Take - Stockpickr), Global Industries (GLBL - Cramer's Take - Stockpickr), Willbros Group (WG - Cramer's Take - Stockpickr), Ametek (AME - Cramer's Take - Stockpickr), Hudson City Bancorp (HCBK - Cramer's Take - Stockpickr), Spectra Energy (SE - Cramer's Take - Stockpickr) and Duke Energy (DUK - Cramer's Take - Stockpickr).

Cramer was bearish on Pfizer (PFE - Cramer's Take - Stockpickr), Buffalo Wild Wings (BWLD - Cramer's Take - Stockpickr) and Nvidia (NVDA - Cramer's Take - Stockpickr).

Want more Cramer? Check out Jim's rules and commandments for investing by clicking here.

For more of Cramer's insights during the Lightning Round, click here.

Here's what Jim Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Thursday evening:

Cooper Tire & Rubber (CTB - Cramer's Take - Stockpickr): "This stock has been too strong. I'm gonna recommend Goodyear (GT - Cramer's Take - Stockpickr)instead."

MedcoHealth (MHS - Cramer's Take - Stockpickr): "I can't believe this one has fallen nine points. I think you should pull the trigger and buy more."

Atmos Energy (ATO - Cramer's Take - Stockpickr): "I don't like this one. I'm not going to recommend it."

Amgen (AMGN - Cramer's Take - Stockpickr): "No, no, I'm not for Amgen. I've bought Schering-Plough (SGP - Cramer's Take - Stockpickr) for my trust. It's the cheapest stock out there."

Yum! Brands (YUM - Cramer's Take - Stockpickr): "I'm behind this one. Buy half your position now, let it come down, and buy the other half."

Clinton Attacks, Obama Parries

John Fout TheStreet.com

Obama deflected most of the attacks, clearly improving on his performance in prior debates. Obama made no serious errors under pressure, much to Clinton's chagrin. Should he become the Democratic nominee, he might want to thank Clinton for taking him to task over policy and substance.

And he's looking more like the nominee unless Clinton can sweep both Ohio and Texas on Tuesday.

The first attacks of the debate came on health care, a topic I have covered in detail. Obama has tried to paint Clinton's mandate of universal coverage as a bad thing because some people may not be able to afford it. But this ignores a few key points. Clinton's plan has significant subsidies for those who cannot afford insurance.

Furthermore, Obama's plan has mandates for children but not their parents. Clinton pointed out that this mandate won't help kids if their parents get sick.

Both candidates hope to get universal coverage passed. But many Republicans will dislike both plans because they call for taxpayer dollars to be spent on health care.

Both candidates have also been crisscrossing Ohio, hammering the North American Free Trade Agreement (NAFTA), trying to curry favor with voters unhappy about the loss of manufacturing jobs there. But demagoguery won't bring jobs back to Ohio.

Tim Russert caught both candidates wanting to have it both ways on NAFTA, at times speaking for its economic benefits and other times lambasting it for political purposes. In particular, he hit Clinton on a campaign promise she made to bring jobs to Buffalo. She had promised 200,000, but Buffalo actually has lost 40,000. Clinton blamed Bush policies for the job losses.

In reality, both candidates actually endorse trade agreements. The latest example came at the end of 2007, when they supported the free trade agreement with Peru, which has some of the protections for the environment and labor lacking in NAFTA.

The Congressional Budget Office (CBO) analyzed NAFTA on its 10th anniversary in 2003. The CBO model found that:

"Changes in trade between the United States and Mexico since NAFTA went into effect have been determined primarily by factors other than the agreement."

Globalization has much more to do with a loss of manufacturing jobs through outsourcing than NAFTA. Chinese workers, for example, receive wages and benefits much lower than those American workers receive.

Both went on the record saying they would ask for modifications to NAFTA. Nevertheless, one of the candidates will eventually face John McCain, who unequivocally supports free trade. The Democrats need to get their story straight.

The free-trade discussion led to a discussion on foreign affairs. Clinton has made the argument on the campaign stump that Obama has as little experience as President Bush had when he entered office. Obama counters he has had better judgment than Bush or Clinton.

He points out that he opposed the Iraq war in 2002 -- a position few politicians can claim. He explained that his record has been similar to Clinton's since he's been in the Senate because what options "do you have when driving a bus out of ditch?" He also favored calling for fair elections in Pakistan, embracing an alternative to dealing with Gen. Pervez Musharraf. Furthermore, Obama supports preemptive attacks on al-Qaeda when Pakistan won't move on actionable intelligence. Advantage Obama.

All of Obama's position prove reasonable. But Obama has to be careful with some of his looser comments. For example, his comment on bombing al-Qaeda in Pakistan clearly demonstrates some of his inexperience. Both President Bush and former President Bill Clinton took preemptive actions against terrorists hiding in sovereign nations. It has to be done to protect our interests. But it's inappropriate to discuss this type of action in public on the campaign trail, because it could have serious diplomatic repercussions. Musharraf criticized Obama by name after the comment.

Clinton criticized Obama for not taking up work in his subcommittee in the Senate. He chairs a committee on European affairs. NATO allies have faced harsh words from President Bush in recent days for not helping more in Afghanistan, which Obama believes needs more attention from the U.S. Obama said he's been campaigning and unable to convene a meeting. (The Subcommittee on Superfund and Environmental Health, which Clinton chairs, met three times last year while she campaigned).

Furthermore, Clinton called attention to her past record on foreign affairs. While First Lady, she helped facilitate peace in Ireland and spoke out on behalf of human rights, in particular women's rights, in a famous speech in Beijing in 1995. This is in addition to her time spent in the Senate for seven years.

Several other moments in the debate stand out. In a moment of levity, Clinton pointed to a recent Saturday Night Live skit portraying the softball treatment the press is accused of giving Obama. She repeated a funny line from it: "Perhaps Obama needs another pillow." Obama responded with a good-natured smirk.

Russert tried to create some controversy when he noted that controversial Nation of Islam leader Louis Farrakhan had recently spoken in favor of Obama's candidacy. Obama responded that he can't control who endorses him, and he repeated his rejection of Farrakhan's anti-Semitic comments.

Clinton chimed in about a similar experience she faced in New York. She had been endorsed by the Independence Party, whose leaders have been accused of making anti-Semitic statements. Clinton publicly denounced the endorsement, and she said Obama should do the same. So he did denounce Farrakhan, escaping a possibly dangerous attack, but he did so with a grin about how this was parsing verbiage.

Clinton had a more passionate and aggressive performance in the debate. Despite her scoring points, she failed to knock a confident Obama off his game. Obama handled the attacks and kept his momentum going. Clinton now depends on the voters of Ohio and Texas to keep her candidacy going.