SEC Played a Big Role in Creating This Chaos

I don't know a soul in the business, save short-sellers, who have participated in these raids who doesn't agree with this dynamic. Yet Cox has steadfastly refused to go back and reinstitute the rules and bring the playing field back to where it was before I retired in 2000 -- to a time when I remember how difficult it would be to create these forest fires given the breaks.

The speed is and was too great to put out the fires, so Lehman went and then AIG looks like it is going. One look at the puts -- which can only be bought in the sizes they are being bought with naked short-selling among the brokers who sell them -- tells you the short-sellers' next moves. That is why I flagged Citigroup (C) to you last week. It was so obvious they were about to maul it.

When we look back at the destruction of the financials, we should remember the instrumental role the SEC played in creating the chaos in doing nothing to stop it, and, like every other government official in this drama, received no criticism or no skepticism.

I just wish for once that the government would have real people be called in -- real people like me -- to explain to them how it works and how easy it was to take down Lehman or AIG through the stock market. It was child's play, and the SEC didn't even know that.

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

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