Cramer: Banks Are Vital to the Market's Psyche

Oddly, what might keep any further differentiation between good and bad banks from happening is, again, something that Oberg's been explaining: inclusion in the financial index covered by the SKF. If Goldman Sachs and Morgan Stanley, in reverse TARP-style, could simply buy Eaton or Illinois Tool (ITW), they would be saved from common stock destruction by being booted out of the index!

Ironic.

But true.

Random musings: I don't care for the Lennar(LEN) common stock, but it does seem like the SEC should investigate the Fraud Discovery Institute work by Barry Minkow. The Christopher Cox SEC subpoenaed me to see who I told when I told people to sell Overstock(OSTK) in the $50s on TV. I hadn't told anyone. They quashed the subpoena anyway. Minkow, according to Lennar, actually sold the information that he was going to put a hit job on Lennar. If true, shouldn't the SEC be following up on that transgression, considering that it might have done the same thing against Herbalife(HLF) than admitted it got it wrong? Right or wrong, anyone who profited from Herbalife made a lot of money. Or is it OK just to hit common stocks with fraud charges and then if things go down, so be it? Interesting case.

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