Jim Cramer's 'Stop Trading!': Stop Illegal Shorts

SEC Commissioner Christopher Cox is "out of touch with what he is doing," Jim Cramer said on CNBC's "Stop Trading!" segment on Wednesday.

Addressing short-selling today, Cramer said that Cox should realize he's had the power to stop illegal shorts the whole time. Cramer suggested that Cox "get the tapes between brokers and clients," because short-sellers know they have to call to borrow stock in order to short. Cramer added that it's "all coming back to roost."

He said the that Securities Exchange Commission has looked the other way and that the government "suddenly woke up when Fannie(FNM - Cramer's Take - Stockpickr) and Freddie(FRE - Cramer's Take - Stockpickr) were about to be destroyed." Wrapping up the segment, Cramer expressed his disgust with the government. "They're fools," he said.