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 Schapiroâs first action as SEC chair should be to ban ultra-short exchange-traded funds. Theyâre causing too much damage in the markets. Cramerâs talking specifically about the SKF, the UltraShort Financials ProShares ETF [SKF 132.49 --- UNCH (0) ], which takes a dollarâs worth of investment and doubles it in order to boost returns. The fund is supposed to be a play on the financialsâ decline. As the Dow Jones U.S. Financials index goes down, SKF shares go up. But that hasnât 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 SECâs 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 Cramerâs words, âit is a manipulatorâs dream come true.â This isnât the first time heâs railed against the SKF, and he said it wouldnât be the last. Cramer wonât quit âuntil the SEC does something.â In the meantime, watch this video for the full story on just how damaging these ultra-short funds really are.
The sec let a $50 billion+ ponzi scheme slip through the cracks...... why is cramer so uptight about ultra short etfs, thats the last thing anyone should question...pretty pathetic if you ask me.
Cramer is a tool. If I see him in the middle of the street I'm stomping on the gas and aiming right for him.
It would be worth the damage done. I would feel bad for my car, but the body shop can fix the car. Gravity can't fix cramer!
Cramer is one loudmouth whose recommendations usually do not pan out. I feel sorry for anyone who takes all that he recommends and acts on it. Barron's has basically proven that he's a big phony, in 2007 and more recently (Feb 2009):
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.