There's something of a Wild Wild West atmosphere in financial markets these days, according to Real Money’s Jim Cramer.
“We have promoters of crypto anything that claim they are doing the lord's work trying to protect your money from rampant inflation,” Cramer wrote recently on Real Money. “We have app innovators who can give you commission free trading without really explaining how there is no such thing as a free lunch because the company's bread and butter is payment for your order flow. We have SPAC managers who can make up any projections they want to and as long as they aren't claiming out and out fraud, anything goes.”
Facing down these financial engineers are the SEC and its chairman, Gary Gensler.
“Gensler, perhaps the most sophisticated SEC Chairman of our era, knows that caveat emptor isn't the law of the land," Cramer wrote.
Gensler is not a fan of endless financial engineering and innovation, and that’s a good stance for the head U.S. regulator in the age of cryptocurrencies and digital trading.
“He wants investors to know what assets support the key crypto money funds called stable coins. He doesn't seem to think it is enough to have the best app if it encourages over-trading and is free in name only because of costs he thinks are too hidden to the public. Heck, when I listen to him, I think that DraftKings (DKNG) - Get DraftKings Inc. (DKNG) Report offers you a better deal because you can't lose more than you put up because they won't give you credit.”
Gary Gensler certainly has a full plate these days. “But he knows that we must not sacrifice integrity or your nest egg on the altar of mindless innovation that takes us back to the days where caveat emptor inspired no confidence whatsoever,” Cramer added.