Cramer on the recent supposed ban on naked shorting and deliberate governmental negligence in enforcing existing rules.
SEC Commissioner Christopher Cox made a “bold” move to ban naked short selling of Fannie Mae and Freddie Mac for 30 days. However, there is a problem; naked short selling, which involves selling a stock short before first borrowing it, has been illegal for any stock at least since 2005. Cramer says this proves Cox could have stopped the damage by enforcing the rules, but preferred to ignore the problem until it was too late. Cramer was also critical of the SEC’s repeal of the uptick rule, which required short sellers to wait for an increase in a stock before selling it short. Through the SEC ignoring and repealing these rules, hedge funds have been able to create an environment of panic and to slaughter certain stocks. “The government doesn’t care,” Cramer declared.
The government thus has never enforced its own rules and now is making a pretense of doing so, something which should inspire no confidence in their ability or ethics. In the meantime, hedge funds made billions by ignoring the rules, knowing they wouldn’t be enforced. The little investor of course was never permitted to flaunt the rules.
This isn’t even socialism for the wealthy, this is deliberate collusion by the government to enrich a tiny few at the expense of everyone else. One class has declared war against the other, aided and abetted by the government.