Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
NEW YORK ( TheStreet) -- An ugly market close but where was the carnage? Jim Cramer asked on CNBC's "Mad Money" Tuesday. Where was the mass destruction in the face of what could be the worst Washington showdown since the Obama administration took over? We should be going down hard now, but stocks have stayed resilient, he said. We could be in for a long period of rancor and indecision. He wondered, maybe the market is saying there won't be a showdown? Cramer said maybe people believe that even if there is no deal immediately, there might be one down the road. Meanwhile, the Federal Reserve has successfully kept rates down, and lower rates buttress the valuation of so many stocks, especially bond-market equivalent stocks. Remember, we should never fight the Fed, even when we think it's out of bullets, Cramer said. Another factor in why the market hasn't collapsed is housing, he said. Perhaps the market sees lower mortgage rates reigniting the housing business, even after what looks like a pause of several months. After all, the market was willing to overlook a key orders number from homebuilder Lennar ( LEN). Add to that foreign markets that are incredibly robust such as the Baltic Exchange Dry Index, which has almost doubled from its July low, signaling that China is starting to order raw materials again. Additionally, the European Central Bank commissioners are saying they will remain accomodative because the recovery is so fragile. What else? Mergers and acquisitions activism and breakup pressures are making this a very difficult environment for short-sellers, oil is finally coming down now that Iran is finally acting nice at the United Nations, and the auto market is seeing improvement, as seen by Carmax ( KMX), which reported outstanding sales and earnings Tuesday. The bottom line: We can't be sure why the debt drama hasn't crushed the markets, Cramer said. Maybe the market is dead wrong. But it could be a sign that some of the positives are playing out, making the sailing a lot smoother than we'd expect, Cramer said.