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Cramer: Big Development Getting Little Attention

(Click for video linked to a searchable transcript of this Mad Money segment)

Something big has happened in the market. And Cramer thinks there's a good chance you haven't heard about it.

The S&P upgraded the outlook for U.S. debt from negative to stable, saying that the downside risks to the AA ratings on the U.S. "have receded to the point that the likelihood that we will lower the rating in the near term is less than one in three." The S&P also said "we do not see material risks to our favorable view of the flexibility and efficacy of U.S. monetary policy."

Cramer believes the development is huge because it quells lingering fears about another downgrade somewhere in the future.

And he also doesn't think most individual investors have heard about the upgrade because it doesn't make for a dramatic story on TV or an exciting headline in print.

"But relegating this development to the back page or bumping it from the newscast is wrong; very wrong," Cramer said.

"Two years ago S&P downgraded the U.S. debt from AAA to AAplus, and the stock market got crushed. It lost 15%," Cramer said. "The downgrade shook the country to the core." And fear of additional downgrades rippled across the stock market.

In light of developments, it's fairly safe to say, no other S&P downgrades of the US debt are coming. That means a serious headwind has died down.

Adam Jeffery | CNBC

"Now I know this upgrade to stable from negative isn't the same as returning the U.S. to its triple A status," Cramer said, but nonetheless, it warrants considerable attention.

Cramer thinks it shows that the sequester is working. That is the mix of spending cuts and tax increases have generated enough revenue to make a difference. In fact, Cramer thinks it's working so well, he expects commentary about the deficit due Wednesday to suggest that the defecit is shrinking – and perhaps shrinking quickly.

"I think the timing of the upgrade was intended to get out ahead of the new information on the deficit," Cramer speculated. And if the deficit is indeed improving, it could only be a matter of time before the next upgrade.

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"I think that the U.S. may soon be returning to AAA status," Cramer said. "Given the bigger receipts and the reduced spending I can see it happening in days to come."

That, Cramer thinks, would be really, really big. But keep your eyes peeled. If and when it happens there's no guarantee you'll find it anywhere near the first page of the paper.

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