Reinstate uptick. Transaction tax. Do away with ETF's like SKF. I think Cramer and beaurocrats are trying to rig the market only to go higher. They all have a vested interest in a higher market, as do we all in the long run. However, we are/were a free-market system.
SKF's have no specific # of outstanding shares. If there are more sellers than buyers, then more are created by the sponsor bank, much like ADR's. For anyone buying a share, someone has sold it to them and has taken the opposite view. I would say that the majority of buying in SKF is done by people tryng to hedge out risk and not speculators. Seeing as they are trading at $163 which is almost half their 52 week high, I also don't see the point of ranting and raving, which is what Cramer often does, to eliminate these. To say they are the reason for pressure on bank stocks is misguided to say the least. How about overleverage, bad lending practices, recession, dividend cuts, etc...
There is a reason that the market is where it is. Stocks trade off of defineable parameters, like PE, cash flow multiples, margins, book value, etc... I hear noone saying that the market, or bank stocks specifically, are so very under-valued with the current economy that it warrants a change. I hear these people saying lets rig the market so that stocks only go up and create the illusion that things are better than they are. Buying over-priced investments only hurts the investor, which doesn't seem to concern them. Majority of investors would be people that have the resources to invest. These are the same people that are going to be taxed more by new administration and pay higher transaction taxes too. These are the same people that were affected the most last year with the market down over 40%.
Modern day Robinhoods, thats what we have here. Re-distribution of wealth. This scares me to no end. It's like we are in Sweden, except without all the blonde women. New healthcare system financed by taxing the wealthy in headlines today. Am I crazy, or does this concern anyone else?
