This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer: Speak Up on the Uptick Rule

This is it, the last time to make your voice heard if you want the playing field to be the same level as it was before the Bush administration decided to give the edge to the shorts by getting rid of the uptick rule.

For a month now, we have been circulating a petition to bring back the uptick rule, in full, without any loopholes that shorts can then drive a truck through.

Why is this so important? I think the deregulation of the securities markets by President Bush and now the most discredited SEC chairman in history, Chris Cox, produced the lax environment that ultimately ended up costing taxpayers billions of dollars because many good banks were not able to refinance using equity capital because shorts were able, systematically, to knock down stocks to absurd levels simply because they didn't have to wait for a buyer to surface.

Now, I know there are many people here who want to debate the merits of the rule. I can tell you that as someone who made multiple tens of millions short with the rule in place, it is simply not an imperative that this government allows the shorts a chance to bash down the longs. The short-sellers never needed this edge.

They got it because, somehow, Bush and his cronies actually believed that the real reason why the government instituted the rule -- the ease with which bears could scare and intimidate longs into panicking and selling and thus wrecking the ability of the capital markets to perform their primary function -- had somehow been repealed.

Worse, the SEC relied on academic studies done at the absolute top of the greatest bull market ever by professors who have never been on a trading desk and had no idea what can really happen, and what kind of havoc a seller can inflict on a market, particularly a rabid one who needs prices lower to perform.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
C $53.07 0.00%
BAC $15.56 0.00%
FAS $121.47 0.00%
FAZ $12.41 0.00%
GM $36.64 0.00%


DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs