Cramer’s just flabbergasted that Wall Street enjoys more freedom than Las Vegas Boulevard. Most people expect to lose money when they gamble. They know “the house always wins.” But investors enter the market will the expectation that at least some returns are possible. So why isn’t there just as much regulation to protect them?
It shouldn’t be harder to get a gaming license, Cramer said, than to register as an investment adviser. If the SEC were a bit tighter with the rules, we might have been spared Bernie Madoff and Stanford Financial. President Obama, in an attempt to move the federal regulator in the right direction, asked for a 13% headcount increase at the SEC. Cramer thinks that number should be closer to 3,000%.
Laissez-faire doesn’t work. The last administration proved that. So Washington needs to step up and fill the gaps. If we gave the manpower and political will to regulate the gambling industry, Cramer said, then we should police Wall Street just as heavily.
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