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: Some Warnings Would Be Nice

Why not do this? Why not explain the hazards of what people are doing? Before you say that Bernanke did do this, I know I haven't heard from a soul who feels they have been warned. I also know there are plenty of reckless managers out there who might have reined in their recklessness, thus making the pain more palatable.

Or how about the Securities and Exchange Commission? SEC head Mary Jo White could have said that, while the Commission itself may not be able to agree on the insurance of money funds, it's her intention -- when push comes to shove -- to make it so that nobody who reaches for yield will be protected. Why can't she tell us this? All she has to do is say that the lobbying efforts have made it hard to stop, but that she will not make life easy for those who do this.

Or how about Gary Gensler, the head of the Commodity Futures Trading Commission? He could have given a speech saying that those who buy newfangled collateralized debt obligations, if they creep back, are idiots who will get hurt if they do. Call them idiots. There's nothing wrong with that. There are a lot of idiots out there. Or why doesn't Gensler talk openly about how the industry wants opaque swaps because they can gaffe the clients more easily with higher fees? Savvy people know this. The more stupid clients don't.

In other words, why don't regulators give speeches warning both managers and clients about stupid things they do that hurt the system? That way, they can tamp down on their own bubbles in their own industries, and they can warn dumb clients that they are going to be crushed and that, therefore, they'd better be vigilant. You can't legislate out morons, but you can call them out and make people realize when they are doing something that could put the system at risk.

Instead, they stick with the process that tends to be captured by the industry itself -- and if there is one thing we know about the financial-services industry, it's that these firms will not do what's responsible. They'll what's most profitable. Therein lies the real problem.

Just spell things out, either publicly or behind the scenes with background interviews. In this way, the parties that could jeopardize the system can be held at bay. In this way, all of us will be better protected than we are now from the shenanigans and the foolishness that breed bubbles and cause pain and loss for all good guys who try to be prudent, but are upended by the greedy and the reckless.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

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
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV


DOW 18,251.14 -34.60 -0.19%
S&P 500 2,129.40 -1.42 -0.07%
NASDAQ 5,096.9320 +6.1380 0.12%

Our Tweets

Partners Compare Online Brokers

Top Rated Stocks Top Rated Funds Top Rated ETFs