Learn the Truth About the UltraShorts

Holy cow, I am not paranoid. There is a conspiracy to knock down stocks! OK, that's extreme, but you have to recognize that this incredible bear market that is clawing away at so many sectors does coincide with the elimination of the uptick rule, coupled with the creation of these bear market Ultra ETFs that control so much of trading.

I say that after reading the amazing history of these products and the uptick rule presented by Eric Oberg on this site. He did some homework on this one. The byzantine approval process coupled with the "research" done to get around the margin rules and the short rules just drives me crazy. You couple this one with the letter that Eddie Lampert issued yesterday for his Sears (SHLD - commentary - Cramer's Take) quarter, one of the wildest and truest documents I have come across.

Lots of people have been all over me, saying the uptick rule doesn't matter at all, but that's just not rigorous. Do you really believe that something like the ProShares UltraShort Financials ETF (SKF - commentary - Cramer's Take) could have been approved without the uptick demolition?

I urge you to read this piece. I think it is the most important discussion on the issue, and it is part and parcel with a market that's been cut in half and very well could be cut in half again over time.

These instruments may not have much to do with the direction. That's the fundamentals. But the velocity has, in many ways, wrecked the ability of companies to issue equity. And that's a crime enough.

At the time of publication, Cramer had no positions in stocks mentioned.

Random musings: Biotech orphan drugs without generic competition or without competition at all will not likely be affected by Obama. That's where the opportunities are, because they have been totally hammered. ... Lincoln National (LNC - commentary - Cramer's Take), MetLife (MET - commentary - Cramer's Take), Prudential (PRU - commentary - Cramer's Take), Hartford (HIG - commentary - Cramer's Take), Principal Financial (PFG - commentary - Cramer's Take)? These have come to resemble MBIA (MBI - commentary - Cramer's Take), Ambac (ABK - commentary - Cramer's Take), PMI Group (PMI - commentary - Cramer's Take) and MGIC (MTG - commentary - Cramer's Take), and I believe that some of these will ultimately have to be put in receivership. I cannot emphasize how dangerous this is for the American people who don't even know their annuities could be at risk. I am sure the reporters who told Tim Geithner to cancel the Citigroup (C - commentary - Cramer's Take) preferreds didn't realize what it would do to the insurers who rely on that funding. To me it is a nightmare.

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Jim Cramer is co-founder and chairman of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. To order Cramer's newest book -- "Jim Cramer's Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer)," click here. Click here to order "Mad Money: Watch TV, Get Rich," click here to order "Real Money: Sane Investing in an Insane World," click here to get "You Got Screwed!" and click here for Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he appreciates your feedback and invites you to send comments by clicking here.

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