And the Plaxy Goes to...
Web Editor, "Mad Money"
Cramer on Tuesday awarded his Plaxy Good Judgment Award to SEC Chairman Christopher Cox, regulator extraordinaire, who reversed some key protections put in place to prevent another Great Depression.
Everyone remembers Plaxico Burress’ recent mishap, right? The New York Giants wide receiver stuffed a pistol into his sweatpants – for a night out on the town, mind you – and then accidentally shot himself when he tried to keep the gun from slipping down his leg. Well, Cramer created an award in honor of Burress’ sound decision-making.
So why choose Cox? Regular viewers of the show are no strangers to the special vitriol Cramer holds just for the SEC Chairman. After all, this is the guy who repealed the uptick rule, which requires a stock to tick up in price before it’s sold short. That paved the way for bear raiders to relentlessly hammer down stocks, nearly driving many companies out of business.
Cox also allowed naked short-selling – which is when traders don’t first borrow the stock they plan to sell short – to continue unchecked, despite rules against the practice. In fact, big-money short sellers have run rampant through the market attacking companies at will, all in the name of profit. And Cox hasn’t done a thing about it.
Don’t forget these gems, either: Cox gave Bear Stearns a clean bill of health just days before the investment bank went under. He approved Bear Ultra Triple ETFs, which turn $1 into $3 worth of selling and are largely responsible, Cramer said, for those 401(k) statements you’re too scared to open. Banks never had to cop to all the bad loans on their books. And just this week we find out Bernard Madoff defrauded investors for $50 billion because Cox never thought it necessary to figure out how Madoff managed such unrealistic returns.
This guy’s so bad that even The New York Times wrote an article about his mistakes: “S.E.C. Image Suffers in a String of Setbacks.”
It’s leadership like this that has Cramer thinking, while Ben Bernanke may get to keep his job when President-Elect Barack Obama takes office, Christopher Cox will be gone shortly after Jan. 20.
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