Cramer wants sec to ban Ultra short etfs

I believe that what goes on in the world court called wallstreet needs to stay on wall street. Many of the shows like CNBC report their versions and oppinions of the news. They should be regulated as well...

They all should be equally restricted like a registered advisor
after all they are giving advice. If not on particular stock on sectors. Giving presidential advice.

Many people use them as their advisor as pathetic as that is... Larry Kudlow is a great man and so is Cramer they have alot of power...

Imagine if all you had was Cramer and Errin to trade with. You would never trade again. If GM was smart they would get their employees to cold call investors and have them buy their stock.

If all their employees got registered they could sell and buy stock and fund green powered IPOS. I dream of Jeannie... This idea is too smart for most to understand. Wnat a demand create it yourself... Peter Bernanke for president.
 
Quote from myoffices:

These ETFs are a DOOZY. If you buy an ETF at 2 pm does it buy a stock at 2.01? NO so there goes the disparity.
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Do you know when the ETF buys the underlying stock/derivatives?

Your argument here is flawed - when you buy a share of an ETF the share you purchase has already purchased its market exposure intrument - long funds are already long, short ETFs already short...
 
Quote from myoffices:

Cramer reads this board since a few years ago. Believe it. And by the way this SKF is a very dangerous tool. In 1993 We funded a yen PUT derivative that caused havoc on the Japanese economy.

There is no 1 to 1 ratio on the security so the swing is disproportional I suggested shorting the SRS at 118 its gotten clobbered and it will probably hit 24 if stimulous works.

SKF is not my cup of tea and it will be most likely taken out along with the ETF. Imagine what would happen if no more etfs. Then more buying of underlying stock as well as less selling daily.

These ETFs are a DOOZY. If you buy an ETF at 2 pm does it buy a stock at 2.01? NO so there goes the disparity.

If you buy 10000 shares of MSFT at 2pm it hits the tape one time win or lose.

The SEC wanted tighter spreads and now they got it and this time they have no grease.... LOL

Wall Street needs the spread to make money.
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What put derivative are talking about? Can you give any arguments how the ultrashort ETFs affect or manipulate the prices? This is a free market and nobody is forced to hedge with SKF long-term. There goes Cramer's argument that long-term short sellers are somehow keeping the market down. If mostly short-term traders are involved then there should be no long-term effect on the prices of the underlying securities.
Your argument about buying an ETF at 2pm does not make any sense at all. If the ETF does not make money money for the manager then it won't exist, it's simple as that.
Wallstreet should not definitely not be entitled to making money on the spread. What are you talking about there? You sure sound like an MBA from one the failed financial companies.
 
Cramer is no longer a trader. He makes his living as an entertainer, and as such must appeal to the middle of the bell curve. I must admit, he is good for a few laughs on occasion. That said, the general public(Cramer's base) is always "long" and views anyone who profits while the market is sinking as some type of Bernie Madoff.

Cramer's ultimate aim is to maintain viewer loyalty, increase his show's ratings, and sell ad time for CNBC. What better way to become the hero of the crusade than to demonize the evil "shorts"? "The market is down and here is someone is to blame!" He's preaching to the choir and couldn't care less about SKF, FAZ, or any other short etfs.

Cramer is a buy side evangelist in a bear market. The short etfs are just convenient devils.
 
Insane. There are algorithms that trade in and out of the SKF's all day long keeping it in line with the current weightings for the short banks that it represents. On any given day it normally moves inverse 2x the BKX index, which is not a mirror image yet similiar enough. Cramer's point I guess is don't give any more leverage to the uninformed/vulnerable then they already have access to. In the wrong hands he is right, this etf is like 'crack' for traders. Same argument has been made for leverage in general throughout our history. In the wrong hands it is like giving 'liquor to the Indians.' OK, how 'bout a warning label comes up when you try to put in an order in the 'skiffs'. WARNING: Trading this instrument may be detrimental to your financial and mental well-being.

:D :D :D
 
market makers and professional have an advantage over retail traders and investors which LEVERAGE.

Like banks have advantage over loan sharks in the street --leverage and access to capital to lend that is why banks can lend so much money at 3% mortgage.


new street rule: margins in shorting and long same market maker or retail accounts. no naked shorting. it's a ponzi scheme or game so those are the rules.

market makers are pretty useless in controlling markets these days. so why give them more leverage than retail accounts are special privilleges.


Quote from Tide31:

Insane. There are algorithms that trade in and out of the SKF's all day long keeping it in line with the current weightings for the short banks that it represents. On any given day it normally moves inverse 2x the BKX index, which is not a mirror image yet similiar enough. Cramer's point I guess is don't give any more leverage to the uninformed/vulnerable then they already have access to. In the wrong hands he is right, this etf is like 'crack' for traders. Same argument has been made for leverage in general throughout our history. In the wrong hands it is like giving 'liquor to the Indians.' OK, how 'bout a warning label comes up when you try to put in an order in the 'skiffs'. WARNING: Trading this instrument may be detrimental to your financial and mental well-being.

:D :D :D
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What you have to understand is that when things get bad everyone looks to point a finger at someone or something to try to justify "its not their fault". This is the same thing. Sure its the ultrashort etfs that are causing the financials to fall apart not bad business proctices.. no.. not that...
 
Quote from S2007S:

Wednesday, 4 Feb 2009
Hey Schapiro, Ban This ETF
Posted By: Tom Brennan
Topics:SEC | Stock Picks | Stock Market

The Securities and Exchange Commission needs to protect investors from harmful financials instruments, Cramer said Wednesday, the same way the Food and Drug Administration protects patients from bad drugs. In fact, Mary Schapiro’s first action as SEC chair should be to ban ultra-short exchange-traded funds. They’re causing too much damage in the markets.

Cramer’s talking specifically about the SKF, the UltraShort Financials ProShares ETF [SKF 132.49 --- UNCH (0) ], which takes a dollar’s worth of investment and doubles it in order to boost returns. The fund is supposed to be a play on the financials’ decline. As the Dow Jones U.S. Financials index goes down, SKF shares go up. But that hasn’t been the case. SKF investors have actually lost money despite huge declines in the banks.

What this ultra-short fund really offers is the chance to sidestep the SEC’s margin restrictions. Short sellers are now double the threat they once were, and their ETF-enabled positions are hammering down the financials, hurting common-stock shareholders and the markets as a result. In Cramer’s words, “it is a manipulator’s dream come true.”

This isn’t the first time he’s railed against the SKF, and he said it wouldn’t be the last. Cramer won’t quit “until the SEC does something.” In the meantime, watch this video for the full story on just how damaging these ultra-short funds really are.
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CNBC needs to cancel cramer. But that will never happen.
 
cramer is a shill for goldman and the hedge fund industry. if you know why they are in favorite of eliminating the ultrashorts please post.
 
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