This is all part of the campaign to deflect the blame away from the real culprits. Shorts will be blamed when in fact all they did was their homework.
Yeah, sure. Go ahead and reinstate the uptick rule. That will take care of the $200 to $400 billion in subprime write offs ... I mean, there is absolutely NO WAY that the $200 to $400 billion in subprime write offs had ANYTHING to do with selling off (sometimes the "aggressive" sell offs) from the highs. And of course, the guy from Bear Stearns saying "we're fine" right before his high profile stock dives from 57 to 30 to between $3 and $6 ... This happened because there was no uptick rule? Yeah, sure. Of course it must have. JP Morgan must have said " Hey, let's bid $2 per share for Bear Stearns, yeah - $2 for the whole company. Why not? I mean, there is no uptick rule anymore ... especially not during the weekends ..." Granted, BSC never traded at $2 - but $5 and change sucks when you are holding at over $30. Why did JPM stop there? Why didn't they bid $2 a share for Exxon-Mobil? Gee, maybe because BSC is worthless and weak because they fucked up and XOM is doing well? ... Nah, that couldn't be it ... For you Cramer loving "homegamers" - this is not complicated ... The financials represent 17% of the S&P. Some of the largest, like Citi and Merrill and Bear fucked up. Massively. Because they fucked up massively, their shares got marked down. This brings down the S&P because there were not any sectors that had positive performances that could offset the massive fuck up that occured in the financials. In addition, when the financials are not healthy, some of the other credit dependent sectors suffer. This brings down the S&P even more. Period. Cramer should suck on a chainsaw for mouthing this ridiculous bullshit ...
The Uptick rule has nothing to do with this mess. I think that the next Cramer proposition will be "The short sales should be Banned for ever". Yeah right mr Cramer, you can't short stocks in france and the CAC-40 is down almost 1,400 points YTD. The diference is that in the US traders can make money in good times and bad, In france, everybody lose money on the downside.
No shorts, no buyers of last recourse, so STRAIGHT DOWN This is exactly why shorts (esecially fresh shorts with no profit cushion) are targeted by big longs looking for liquidty to get out with are targetting with their gunning of stocks on "news".
I'm no fan of Cramer's, but compared to much of the stuff I read in this forum, he's really quite rational and moderate. In both cases, occasionally I find some interesting, informative or even educational information, interspersed with a whole lot of crap.
you probably mean his first and third. i can't argue on the third (i think that's the real money book), and hugely agree on the first. his second, "you got screwed", is an abysmal piece of trash.
UPTICK RULE was there since 1934 and these bastards got it removed hence this massive volatility and shorting driving down stockholders equities and reducing asset classes. Market downfall is partly to be blamed for this uptick rule being removed. I say institute this UPTICK RULE so they cannot send vicious nasty blood splashing sell offs in the last 1/2 hour of the closing bell.. Write to the Senate Banking committee, Senators and Congressman and email them today.