Last night while sitting in my living room flipping through the TV channels I stumbled upon Jim Cramer's Mad Money cable show. I had watched the show once or twice before and found Jim to be a great entertainer and faster than a speeding bullet with his quips. But what really got my attention last night wasn't what stock he was pushing, but rather who he was ranting about. Cramer was ranting about SEC chairman Christopher Cox and his decision to remove the uptick rule on July 6th of last year.
Chris Cox what were you thinking??
So here is a picture of the poster child for the lack of regulation on Wall Street.
Christopher Cox is the 28th Chairman of the Securities and Exchange Commission. He was appointed by President Bush on June 2, 2005, and unanimously confirmed by the Senate on July 29, 2005. He was sworn in on August 3, 2005.
The SEC voted to remove the “short sale tick test”, Rule 17 CFR 240.10a-1 for all equity securities. Effective Friday, July 6, 2007 traders will be able to short all securities on an up, down, or zero tick.
RULE IMPLEMENTED: DOW July 6, 2007 13,611 - DOW September 16, 2007 11,059
Loss 2,552 Dow points
It's not often that I agree with Cramer or his investment pics, but I have to admit that I agree 100% with what he said last night about Chris Cox. If you are as mad as Cramer is about Chris Cox then email him. [email protected]
I doubt that you'll hear from Mr. Cox personally, but you will feel better that you did something about the lack of regulation on Wall Street.
5 thoughts on “The poster child of the AIG disaster”
I think that capitalism is very much idealized. And with too much regulations it has chances to become a socialism without free competition. If person wants to sell short why bother and control him. Especially if ETFs don't have the up-tick rule.
I agree with Dean who has commented above. After all, lets face it - retail investors only make money in bull markets. What do you do if the economy is in doldrums and the market is cracking. Obviously you short it. And its good to short when you want to, rather than have a rule which is restrictive. After all its a free market, isn't it?
Adam, I dare say you yourself must have shorted heavily when Market Club gave you the signal to short?
I am not against short selling. I am against NAKED SHORT SELLING. See today's SEC game changer.
You might be interested in a story done on SEC Cox on NPR last week. They outlined how Cox obviously did not wish to do his job, missed virtually every important phone conference call, ignored pleas from legislators to step in and deal with corruption in the markets. see http://www.thislife.org/Radio_Episode.aspx?episode=363
Act Two. Now You SEC Me, Now You Don't.
TAL producer Alex Blumberg reports on a peculiar Wall Street practice with a dirty-sounding name—naked short selling—and how one of Wall Street's main regulators, the chairman of the Securities and Exchange Commission, doesn't seem all that interested in regulating anything.
Alex's story is also going to be on NPR's new Planet Money podcast...which came about after our Giant Pool of Money show, the show Alex did on the mortgage crisis with NPR's Adam Davidson. They're doing a couple new stories a week in the spirit of that show at npr.org/money. (19 minutes)
thanks for your good work,
I hope to become a subscriber again in the future,
I feel it is just an excuse for losers to blame Mr Cox after all everybody is allowed to short the market uptick downtick or no tick. The downturn of market had much to do with economy and very little to do tick tick tick. The followers of inno tv sure made a lot money because they only listen to market which tells them it is down.
I will email Chris Cox and let him know what a great job he is doing. I think its good to be able to short a stock when I want to. Your as crazy as Cramer.
Comments are closed.