Cramer's strategy session: What it'll take for me to come around on GE

  • "Mad Money" host Jim Cramer talks General Electric and sell-off threats in a strategy session with callers.
  • Cramer specifies what it'll take for GE to get back on his good side.

CNBC's Jim Cramer has a laundry list of requirements for the struggling General Electric to get back in his good graces.

In a "Voice of Cramerica" strategy session, the "Mad Money" host told a caller that the ailing industrial had a lot of work to do before he could consider it even a remotely safe investment.

"I need to see a couple of good quarters," Cramer said. "I need to get certainty about long-term care. I've got to feel better about pension. I've got to see a write-off at Alstom. If I see all these things, then I might come around."

Cramer, whose charitable trust owns shares of GE, has admitted that investing in the company was one of the biggest mistakes of his career.

But while Cramer has chided GE's management for past market moves like as shoddy acquisitions, he told another caller that the stock market of old is probably never coming back.

"We do not have what we had in 2008-2009," the "Mad Money" host told a caller worried about losing her market earnings to a 40 or 50 percent sell-off.

Cramer acknowledged that some stocks could be overvalued, but argued that the systemic risk that pushed the market into recession in 2008 has been largely eradicated.

But Cramer still had a game plan for callers who couldn't shake their fears.

"Here's what you do: you split the difference. In those kinds of situations, take off between 10 to 20 percent, put it in cash and then you'll be ready," he said. "I am telling you that will work. Follow my instructions."

WATCH: Cramer's strategies for sell-offs, hedging, GE and more

Disclosure: Cramer's charitable trust owns shares of General Electric.

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