Jim Cramer: “The SEC Isn’t Watching the Store”

I will readily admit I am not a big fan of CNBC’s Jim Cramer. Perhaps it is more Jim Cramer’s style than his substance but for whatever reasons, I very rarely watch his show or follow his work.

I will also readily admit I am a HUGE fan of Themis Trading’s Joe Saluzzi. Based upon both his style and his substance, Joe Saluzzi and team at Themis Trading were long ago inducted into the Sense on Cents Hall of Fame.

While a fan of Joe and less of Jim, how uncanny that I am here this morning touting both of them for promoting real ‘sense on cents’ in defining the true nature of our equity exchanges.

Joe highlighted the other day at his Themis Trading site, Jim Cramer Mad Money Monologue, Friday July 8th, 2011,

Who made the statements this past week?

Powerful managers use ultra ETF’s of mass destruction to push stocks around.

Performance of stocks has become disconnected from performance of the underlying companies.

If you go swimming in this market, there is no lifeguard on duty.

The SEC, who favors high frequency traders, is not doing their job protecting the little guys.

Our markets have been captured by high frequency traders, and the EXCHANGES.

The SEC has approved all kinds of innovations that make the market less legitimate, and less safe.

The SEC has approved all kinds of things that make the markets more dangerous, and more difficult for you to save money for your kids.

If you think the SEC has your back, think again.

If you think the Exchanges are on your side, think again.

In the old days Exchanges used to be non-profit; now they want their large institutional hedge funds that trade high frequency to make money, because that’s how they make money.

Until you get the SEC to start looking at the markets through the prism of your IRA or 401k or 529 plans instead of through a prism of market manipulators, don’t be surprised by any outrage or flash crash. It can happen again.

Did you guess the guys at Themis Trading? If you did you would be wrong. We did make those statements in almost 160 other weeks, but in this past week it was not us. Rather, those statements were made by CNBC’s Jim Cramer on Mad Money this past Friday evening. It was his 5-minute opening monologue, and you can watch it here.

Giving credit where it is due, major props to Jim Cramer for this monologue. He hits hard on an element of what I have long defined as Wall Street-Washington incest.

Joe Saluzzi may not need any more props but I will give them to him regardless. Joe is ‘the man in the arena’ who continually fights the good fight on behalf of all of us who have a real appreciation for truth, transparency, and integrity in our markets.

Be thankful there are guys like Joe in America. We need more like him.

In regard to the exchanges, having made their bed with their high frequency consorts, they can now lie there and watch their daily trading volumes plummet as more and more Americans choose not to play the game. Perhaps I should have said, these Americans have chosen to ‘navigate accordingly‘,… as should you.

About Larry Doyle 522 Articles

Larry Doyle embarked on his Wall Street career in 1983 as a mortgage-backed securities trader for The First Boston Corporation. He was involved in the growth and development of the secondary mortgage market from its near infancy.

After close to 7 years at First Boston, Larry joined Bear Stearns in early 1990 as a mortgage trader. In 1993, Larry was named a Senior Managing Director at the firm. He left Bear to join Union Bank of Switzerland in late 1996 as Head of Mortgage Trading.

In 1998, after 15 years of trading and precipitated by Swiss Bank’s takeover of UBS, Larry moved from trading to sales as a senior salesperson at Bank of America. His move into sales led him to the role as National Sales Manager for Securitized Products at JP Morgan Chase in 2000. He was integrally involved in developing the department, hiring 40 salespeople, and generating $300 million in sales revenue. He left JP Morgan in 2006.

Throughout his career, Larry eagerly engaged clients and colleagues. He has mentored dozens of junior colleagues, recruited at a number of colleges and universities, and interviewed hundreds. He has also had extensive public speaking experience. Additionally, Larry served as Chair of the Mortgage Trading Committee for the Public Securities Association (PSA) in the mid-90s.

Larry graduated Cum Laude, Phi Beta Kappa in 1983 from the College of the Holy Cross.

Visit: Sense On Cents

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