This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer: Sequestration Good for Stocks

Debra Borchardt: Well it's interesting because we're hearing that the Republican side in an article in The New York Times today...is starting to say, "You know what? We'll take those defense cuts."

Jim Cramer: I know. That wasn't supposed to happen.

Debra Borchardt: Now the Democrats are going, "Well, wait a minute. You're not playing by the rule book. You're supposed to not be for that." So now that the Republicans are saying, "You know what? Cut the military," it's kind of started to change the dialogue.

Jim Cramer: Maybe that's what happens ... when I lived in Florida, I covered the legislature there and they had sunshine provisions. They were always trying to figure out ... after 10 years when you sat with the legislators, they would say: "Look. We don't know whether this thing ... turns out to be really good; when it sunsets, if the people want it, we'll bring it back." ...I believe there will be a deal. But maybe what will have to happen here is the following, which is, "OK, look. That turned out to be a bad idea. Now Congress get back in session and fix the national parks."

But the idea that there's nothing in the government that can be cut, after working in the private sector for 33 years and watching people being laid off, after lay offs, after lay offs...there's things you can cut. So I think that this is one of those where the Republicans have more of the upper hand than anybody realized because no one thought that they would ever be willing to go with defense cuts.

Debra Borchardt: Do you think that that's actually going to be a positive for the stock market? It could be that they're seeing some real action.

Jim Cramer: Kudlow says, "Yes." The reason I focused on him ... Larry was my partner at Kudlow & Cramer for years, but Larry worked on budget for Reagan, OK? And I don't know anyone who does more, better, rigorous budget work than Larry. So I'm just urging people to go to CNBC.com and read that piece.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
DIA $180.54 0.00%
QQQ $110.54 0.00%
SPY $211.65 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs