Cramer Quick Take: Defense Spending Will Not Be Cut

Check out Jim Cramer's latest trading recommendations on "Action Alerts Plus".

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NEW YORK (TheStreet) -- The smart money is betting with the defense stocks, not against them, Jim Cramer told Lindsey Bell at TheStreet.com Thursday.

He said with defense spending resting solely in the hands of Congress, and Congress needing to be re-elected, no one will stick their necks out, especially given recent events in Libya. Defense spending is a "crowd pleaser," said Cramer.

That's why Cramer has been a buyer of Boeing (BA) for his charitable trust, Action Alerts PLUS, after selling shares at higher levels. He said that other defense names, like Lockheed Martin (LMT), also become attractive when they yield over 4%.

Watch the full Cramer interview here.

--Written by Scott Rutt in Washington, D.C.

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To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

At the time of publication, Cramer's Action Alerts PLUS had a position in BA.

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