Cramer wants sec to ban Ultra short etfs

[Angrycat]

Quote from nravo:

Yeah, Kudlow, Mr. Free (but let's bail out the investment banks) Market. Ron Paul I can at least respect, Kudlow just another Republican hypocrite.

I know. It's so sad. Have you noticed how many of these douchebags start sentences with "I'm the biggest free market guy you can find, BUT...."?

So, in other words, they aren't free market at all.

 

[zdreg]

Quote from Angrycat:

I know. It's so sad. Have you noticed how many of these douchebags start sentences with "I'm the biggest free market guy you can find, BUT...."?

So, in other words, they aren't free market at all.

in the foxhole there are no atheists.

 

[tradersboredom]

cramer also wants to make money without doing anything as an investor.

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.

 

[tchaser58]

How bout Cramer being banned.

 

[subban]

Cramer was'nt complaining when we had a bull market on banning ultra long financial etf's or for that matter even asking to bring back the uptick rule to short. This guy just wants to blame somebody for his inability to make money in this market and his array of horrendous picks and advice. ultra etfs help daytraders make money with the volatilites that we have now. Why ruin a good thing for daytraders and place blame on us for a horrible economy that has nothing to do with trading ultra etfs. If you read that guy's book who used to work for cramer's hedge fund, cramer used to do naked short selling all the time along with numerous unethical sec violations. i say cramer should be prosecuted.

 

[bwolinsky]

Uptick rule wouldn't have a problem with, because naked shortselling can be used just to knock a price down.

 

[d08]

And I want SEC to ban Cramer.

 

[jwcapital]

The one thing I do agree with Cramer: reinstating the Uptick rule. The vehicles are fine. Reinstating the uptick rule and enforcing existing regulations really levels the playing field.

 

[NY0BScalper]

Quote from jwcapital:

The one thing I do agree with Cramer: reinstating the Uptick rule. The vehicles are fine. Reinstating the uptick rule and enforcing existing regulations really levels the playing field.

How the hell does reinstating the uptick rule level the playing field? It levels the play field for the prop firms that charge $17-40 per thousand to short on a downtick. Someone will front run the shorts. They'll get crap fills. That doesn't level shit.

 

[sprstpd]

Quote from jwcapital:

The one thing I do agree with Cramer: reinstating the Uptick rule. The vehicles are fine. Reinstating the uptick rule and enforcing existing regulations really levels the playing field.

When shorting was made illegal on the financials, the financials got HAMMERED. This fact makes any argument for reinstating the uptick rule, based on the fear that shorts are able to pound stocks to the ground, illogical. Now if you want to enforce the naked shorting rules already on the books, I'm fine with that. But don't go reinstating the uptick rule. It is a fairer playing field with it abolished.