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: The Last Straw for Retail Investors

Editor's Note: This article was originally published at 6:28 a.m. EDT on Real Money on Aug. 26. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.

NEW YORK ( Real Money) -- "Last straw." Those are the two words I heard everywhere I went this weekend. The Nasdaq outage was the last straw, as it's become clear that the machines have taken over and they simply can't be stopped. That attitude, plus the desire to see someone at the Nasdaq OMX (NDAQ - Get Report), which runs the Nasdaq, take the fall for Facebook (FB) and for this three-hour shutdown, was on one everybody's lips -- my conversations tend to skew to the stock market when any event puts stocks back on the front page.

The criticism was two-pronged. The professionals would like to see Bob Greifeld replaced as CEO at Nasdaq, mostly because of his total failure to communicate anything about the situation, coupled with his insistence that such a lack of transparency is absolutely the right thing to do.

The amateurs, on the other hand, just want out. They have lost faith in the system entirely, because they believe that the big guys -- particularly the high-frequency traders -- are the ones behind the complexity. These folks just want a simple bid-and-ask to make their sells and their buys. They don't need the obviously not-redundant dark pools and rival exchanges in order to get what they want done. They just want the old days back, when the Nasdaq was the technological leader and seemed like the better-run of the two big exchanges.

Greifeld's hold on the Nasdaq board is a little mystifying. I think his success has a lot to do with his hard-core "don't cross me" ability that can beat back all critics. To say that Greifeld is tough would be an incredible understatement. It's a given that he'll ensure those who disagree with him will have to explain themselves a lot harder than he has to do. In light of Facebook and this debacle, that's is a pretty brilliant strategy: He's put the critics on the defensive even after these two confidence-destroying episodes. That shows his power and his hold on the franchise -- as well as the toothlessness of the Securities and Exchange Commission.

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
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs