Cramer wants sec to ban Ultra short etfs

Discussion in 'ETFs' started by S2007S, Feb 6, 2009.

  1. 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.
  2. S2007S


    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.

  3. 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.
  4. What about your car?!
  5. 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!
  6. alexg


    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):

  7. Ribs


    damn with good posts like that

    I would follow you to war sir :)
  8. 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.
  9. Can we ban Cramer?
  10. Lucrum


    Who's going to protect investors from Cramer?

    #10     Feb 8, 2009