Nearly 5,700 people have signed a letter headed to the U.S. Securities and Exchange Commission, demanding more policing of short sellers. Apparently Cramer isn’t alone in wanting to avoid another Great Depression.
The uptick rule, which forced traders to wait for a stock’s price to tick up before selling it short, was repealed under the leadership of former Chairman Christopher Cox. Since then, unchecked bear raiders have wreaked havoc in the markets, even at points driving too-big-too-fail companies out of business. (See: Bear Stearns.)
That’s why Cramer wants the rule reinstated. These short sellers have cost taxpayers billions of dollars, as once-stoic firms teetering on collapse needed a bailout. They have sewn panic and fear in the markets, even threatening capitalism itself, he said, just to make a buck. This can’t be allowed to happen.
If the Great Depression’s survivors thought the rule worthy of creation, Cramer thinks it is worth upholding.
“We believe that a relatively simple check,” the petition reads, “that was in place for nearly 70 years, the ‘Uptick Rule,’ helped serve the markets well in balancing various participants’ interests. We therefore urge the SEC to reinstate such a price test rule and specifically would urge a plus tick rule over other alternatives such as a ‘best bid’ or a ‘circuit breaker’ test.”
The letter will be hand delivered to the government regulator on Monday. Cramer urged viewers who didn’t get the chance to sign his petition to visit the SEC’s Web site.
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