Cramer: ‘Nothing Fixed’ Yet Since Flash Crash
Remember that “flash crash” back on the afternoon of May 6, the one that took the Dow down nearly 1,000 points and Procter & Gamble to $38 from $60 in a matter of minutes? Well, recently Diebold experienced a mini-flash crash of its own, falling $10 in just three minutes.
Even despite that first alarming sign that something was wrong with the market, Cramer said during Wednesday’s Mad Money, “Nothing’s fixed.”
He thinks high-frequency trading is a big part of the problem. Funny, though, because these traders are the very people that the Securities and Exchange Commission is running to for help in solving this crisis. And just last week a key SEC official, Elizabeth King, left for a job at Getco, a leading high-frequency trading company. Cramer had to ask: Is the fox guarding the hen house here?
With close to 80% of trading volume coming from these companies, Cramer thinks it’s time to fix the markets. Luckily for everyday investors, there’s someone in the Senate fighting to do just that, he said: Ted Kaufman, who replaced Vice President Joe Biden in Delaware. Cramer said Kaufman has been right over and over on these issues, so he wanted to bring him back to Mad Money. Watch the video for the full interview.
Call Cramer: 1-800-743-CNBC
Questions for Cramer? email@example.com
Questions, comments, suggestions for the Mad Money website? firstname.lastname@example.org