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.

If you liked this article you might like

Market Is on the Straight and (Very) Narrow

Look Back to Go Forward

Stock Observations; Reviewing Equities: Doug Kass' Views

Even North Korea's Kim Jong Un Can't Stop This Epic S&P 500 Stock Rally

Robots Might Be Biggest Obstacle for Stock Market Bears